Consumer applications have become the new focus of the crypto market as infrastructure matures.

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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.

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

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.

IOSG: Observations and Thoughts on Consumer Application Tracks under Complete Infrastructure

Future Development Trends

  1. Friendly regulatory policies will bring a new wave of development opportunities, attracting more Web2 users to enter.

  2. The market will pay more attention to projects with real users and revenue, and consumer applications are expected to win.

  3. The crypto market will shift towards the attention economy, and B2C applications will help expand the overall market scale.

IOSG: Observations and Thoughts on Consumer Application Track Under Complete Infrastructure

Consumption application track that has reached PMF

  • Trading/Perpetual Contracts: Hyperliquid, Axiom, etc.
  • Launchpad/Meme coins: Pump.fun, BelieveApp, etc.
  • Information finance and prediction markets: Polymarket, Kaito, etc.

These projects generally have considerable income, but the scale of financing is relatively small.

IOSG: Observations and Thoughts on Consumer Application Tracks under Complete Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Comprehensive Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

Potential Track

  1. One-stop deposit/withdrawal + DeFi super application

  2. Using encryption technology to optimize UX in entertainment/social platforms

  3. AI and gaming are still awaiting the improvement of infrastructure and breakthroughs in business models.

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

IOSG: Observations and Thoughts on the Consumer Application Track Under Complete Infrastructure

Investment Framework

  • Focus on a few consumer-friendly "superchain" ecosystems
  • Assess the project's distribution capability, user experience, and business model
  • Evaluate from a business rather than a protocol perspective: focus on revenue, scalability, and industry position.

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.

IOSG: Observations and Thoughts on Consumer Application Track under Complete Infrastructure

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FortuneTeller42vip
· 08-12 13:42
Users are king to survive.
View OriginalReply0
ZkSnarkervip
· 08-12 13:34
Layered Peak Transfer Application
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MEVHuntervip
· 08-12 13:33
Consumer applications are the next big trend.
View OriginalReply0
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