(Kitco News) – The ongoing saga that is the collapse of FTX dominates crypto headlines and has led many to write off the industry for good as billions of investor funds evaporate with no hope of recovering what has been lost.
While the exchange and its contagion effect was a common topic of conversation on the first day of the AIBC conference in Malta, those most active in building in the space also focused on the promising applications of blockchain technology. which are gaining popularity.
According to Alexander Filatov, co-founder and managing partner of EverX Labs, there are five major trends that will help the blockchain space surpass 1 billion users in the next 6-7 years.
The first of these trends is GameFi, a popular sector that emerged during the 2021 bull market and introduced a way for gamers to earn money doing what they love. This trend includes things like Act2Earn and Move2Earn, which reward users for exercise and activity.
Filatov grouped these areas under the broader Metaverse trend, which the CEO believes could be one of the most influential sectors that will drive accelerated adoption of blockchain technology and Web3.
The second growing trend is an increase in tokenization and non-fungible token utility (NFT), which is becoming increasingly popular with large enterprises and creators who continue to discover Web3 monetization opportunities.
Improving the performance of blockchain protocols was the third trend cited by Filatov, as more scalable networks will be needed to onboard new users. Ethereum’s transition from proof-of-work (POW) to proof-of-stake (POS) was cited as an example. As you read this, the protocol developers are now focused on scaling the new POS ecosystem to facilitate wider adoption.
In addition to improving the underlying blockchain technology, the developers are also focusing on upgrading the Web3 infrastructure and improving the user interface (UI) and user experience (UX) so that new users are enticed to stay and engage once they start exploring the technology.
A fourth trend that will likely lead to an influx of money and participants into the crypto economy is an increase in government intervention and the establishment of regulations related to the use of blockchain-enabled technologies.
Several representatives from the institutional investment world have indicated that the lack of a clear regulatory framework is the biggest barrier to involvement in cryptocurrencies, so establishing clear rules and regulations will enable these companies begin to gain exposure to the asset class for the first time. time.
It was valued that around a third of institutions in the US are already invested in crypto at some level, meaning that the available pool of institutional investors remains large and capable of making a big impact.
The latest trend noted by Filatov was an increase in experimentation with things like Decentralized Autonomous Organizations (DAOs), social tokens, decentralized social networks, and Web3 media as the technology becomes more widely available.
One of the primary uses of the internet by the common person is for social interaction, and this is an area of the market where blockchain has yet to make solid inroads.
DAOs allow the community to make important decisions for a project and foster interaction among protocol users, and social media with built-in blockchain capabilities open the door to things like creator rewards and monetization. social interactions.
While FTX is currently in the headlines, its effects will one day pass and the journey towards mainstream adoption of blockchain technology will continue. According to Filatov, the current adoption curve largely mirrors that of the Internet, and the industry will surpass 1 billion users within 6-7 years if the trajectory remains the same.
Despite the short-term noise, the long-term outlook for blockchain technology and cryptocurrencies remains positive as the number of builders seeking to leave their mark on the industry continues to grow.
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