In which direction the crypto industry will go. Thoughts from analyst 0xKyle of DeFiance Capital (liquid fund).
1 The chase for a bet on the future promising L1 blockchain will die (low probability of big wins, as was the case with SOL, SUI, AVAX).
Each blockchain will now need its specific use case, and they will be defined by what is built on them.
44% of internet traffic comes from WordPress, yet its parent company Attica is valued at only ~$7.5b; 4% of internet traffic comes from Shopify, yet its worth is ~$165b.
2 Web2 companies will start creating blockchains for their needs, and no one will stop them (possibly the first swallow - Robinhood)
3 Ironically, stocks in cryptocurrency projects (COIN, HOOD, MSTR) may turn out to be a more profitable bet on cryptocurrency than altcoins.
They will grow and generate profit as an expression of optimistic TradFi sentiment towards cryptocurrency, without direct investments in tokens.
4 Technological development as a leading role will not be as popular as it is now.
Those projects that pay attention to developing relationships with their community/liquid funds that will buy tokens on the secondary market will win.
5 More liquid funds are needed, and liquid funds are generally good because they bring capital and long holding times; you will also never see a liquid fund investing in something like Milei or anything of the sort.
6 Classic crypto conferences like ETH Denver are likely to start disappearing. More attention will be on conferences aimed at institutional investors, similar to the Blockworks Digital Asset Summit.
7 Tokens that truly excel must show why having a token allowed them to build some product-market fit. So far, I can only remember about 5 tokens that demonstrate this, and it could potentially attract investments in this area because you can only get them here, and nowhere else.
8 The crypto industry is not going anywhere.
9 The era of legitimate builders is coming; people coming from web2 who have experience and vision and are now not afraid to experiment, as the government will no longer oppress them. Exciting times are ahead.
10 Memes will not die, but they are now considered 'low-status'; they need time to start shooting up organically again.
People know how to play this game; there are no more blind beliefs.