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Consumer applications have become the new focus of the crypto market as infrastructure matures.
Infrastructure is maturing, and consumer applications have become the new focus of the crypto market.
In recent years, the infrastructure construction of the encryption industry has become saturated, and the marginal benefits of technology are declining. The market focus is shifting from underlying technology to user-facing consumer applications. In the current market environment, consumer applications with actual users and revenue are gaining favor, while the high valuations of purely technical projects are difficult to sustain.
Market Status Analysis
The total market capitalization of stablecoins has slowed down, only about 25% higher than the peak in 2021. The new liquidity mainly comes from institutional purchases of BTC/ETH, rather than speculative capital. The overall market lacks the retail enthusiasm seen in 2021.
Future Development Trends
Friendly regulatory policies will bring a new wave of development opportunities, attracting more Web2 users to enter.
The market will pay more attention to projects with real users and revenue, and consumer applications are expected to win.
The crypto market will shift towards the attention economy, and B2C applications will help expand the overall market scale.
Consumption application track that has reached PMF
These projects generally have considerable income, but the scale of financing is relatively small.
Potential Track
One-stop deposit/withdrawal + DeFi super application
Using encryption technology to optimize UX in entertainment/social platforms
AI and gaming are still awaiting the improvement of infrastructure and breakthroughs in business models.
Investment Framework
In the next 5 years, focusing on consumer applications as an investment priority may yield excess returns. The key is to choose projects that can transform encryption technology into the everyday experience of regular users.