Consumer Applications: The Next Frontier of the Crypto Market

As infrastructure continues to improve, the focus of the encryption industry is shifting from technology to application. This article explores the position and development prospects of consumer applications in the current crypto market.

Market Background

• The infrastructure has become saturated, and the marginal returns of technology are decreasing.
• Liquidity growth is slowing, and retail participation is low.
• The improvement of the regulatory environment brings new opportunities to the industry.

Core Views

1. Regulatory friendliness will drive a new wave of development, attracting Web2 users.

2. Market focus shifts from technology to real applications and revenue

3. Consumer applications will be key to expanding the market size.

The track that has reached product market fit

• Trading / Perpetual Contracts
• Token Issuance Platform
• Information Finance and Prediction Market

Tracks with Development Potential

• One-stop encryption financial service platform
• Entertainment/social platform based on encryption technology

Investment Framework

• Focus on user experience, speed, and liquidity
• Evaluate distribution capabilities and brand influence
• Measure projects from the perspective of enterprises rather than protocols.

Conclusion

In the next 5 years, focusing on consumer applications as an investment priority may yield excess returns. The key is to find projects that can transform encryption technology into everyday experiences and attract a large number of users.