Explore which crypto trends could spark the next bull run

The next bull market will be driven by techniques and trends that are still being built in the current bear market, but not all techniques or trends are of equal value. So, let’s explore which crypto trends could spark the next bull run in this article.

In fact, we can assess crypto trends with a framework that considers the main factors including:

1. Innovation

2. 10 times the value potential

3. Total Addressable Market (TAM)

4. Value capture

5. Competitiveness

With that framework in mind, we might be able to evaluate the following three trends to see if they really have the power to catalyze the next bull market acceleration.

1. Application Agreement

In the past, the crypto industry seemed to value network protocols more than application protocols. But now, the dynamics of market competition have changed subtly. The new ecosystem will make every effort to achieve EVM compatibility so that application protocols can be easily deployed.

As blockchain competition becomes more competitive, execution environments such as EVM begin to explore commoditization and monetization models, in which case crypto applications gain a firmer industry positioning. Not only that, but crypto apps themselves are looking for more optimized business models aimed at accumulating more “bottom line revenue.”


Application Protocol Development Trend

1. Core Features

Portability: APPs can now easily adapt to new (EVM) blockchains;

Profitability: Using the stablecoin model, application protocols can generate “bottom line income”;

User relationship: Compared to traditional network protocols, application protocols can generate better user relationships.

2. Key Differences

Sustainability: The application protocol will benefit from the competition of the base chain;

Non-forkable: The liquidity of minted stablecoins will not face the risk of fork;

Verifiability: Products and teams are battle-tested.

3. Main challenges

Incentives: Need to provide ETH incentives, or provide excess incentives;

Regulation: need to face the risk of regulatory uncertainty;

Favorable factors

1. Ecological Fund

The ecological fund will attract more users to the APP;

APP will accumulate revenue and brand power;

Leverage brand power to expand more blockchains.

2. Business optimization

Product upgrades will increase revenue;

The source code license will reduce the risk of fork;

Strengthen governance processes

unfavorable factors

1. Supervision

U.S. regulatory compliance requirements will limit user base growth;

Stablecoins are expected to be subject to additional regulation;

2. Encrypted user experience

Users have negative perceptions of crypto wallets and browsers;

Lack of accessibility limits user base growth;

User experience is beyond protocol control.

2. Decentralized social

Decentralized social provides people with on-chain reputation, organization (DAO) and content ownership, where content ownership is key as it provides a way for people to ultimately capture the value they create, which means the internet will restructure the flow of value .

Decentralized social networking is a completely open, personalized and “ownable” social media. Social APPs can create independent profit models, and users can also earn income from the content they create. The main products in this field include data Hosting, social graphs, and social apps.


Decentralized social development trend

1. Core functions

Income: rich and diverse profit models, such as P2E;

Open data: social graph data can be migrated between applications;

Scalability: Decentralized Social is open source and fully customizable.

2. Key Differences

Larger addressable market: including social network advertising and digital commerce;

Defendability: The social graph and infrastructure can be quickly completed and effectively consolidated;

“Portable Talent”: Developers and users experience easier access.

3. Main challenges

Scalability: The scale of daily active users of decentralized social applications is generally high, which will cause certain pressure on the blockchain;

Privacy: The data of decentralized social applications is open, and some users may feel unhappy due to the lack of privacy;

User experience: In terms of wallet experience, ordinary users may be slightly poor.

Favorable factors

1. Content “owned” by the user

Through NFTs, users want to own and share content;

User-owned content will open up more functional designs;

When users master content ownership, user stickiness will be further enhanced.

2. Social investing

Investment activities will become more social, such as WSBs and DAOs;

In the past, there was a lack of native social investment platforms, and there may be great development potential in the future;

Investors need to establish credibility in the community, and a number of native tools for building investment credibility will emerge.

unfavorable factors

1. Mobile encryption will be limited

Mobile encryption integration is not efficient;

iOS has always been a “firm gatekeeper”;

Greatly limits the available user base.

2. Data problems

Social application products usually generate massive amounts of data;

It is difficult for the current blockchain to process massive transaction data;

An available tier that supports unpublished data is required.

3. Web3 games

The goal of Web3 games is to allow players to own their in-game digital items, and to use tokens to create an in-game economy, which in turn promotes players who participate in the game to gain a sense of achievement and attachment to this feeling, and are more willing to play in the game. invest funds.

Driven by the “play while earning” game model like Axie Infinity, Web3 games are becoming more and more popular, and more and more Web3 games are beginning to incorporate Token into their own mechanisms. While no sustainable Web3 game has emerged so far, the field has attracted a lot of investment to develop the next “hit game”.


Web3 game development trend

1. Core functions

Incentives: Players can earn income by investing time in the game;

Player-owned content: Players have “ownership of game content”;

Games are easy to pick up: Getting started faster will help further drive adoption of Web3 games.

2. Key Differences

High income: Participating in earning games like Axie Infinity may earn more income than participating in DeFi;

Defendability: The liquidity of minted stablecoins will not face the risk of fork;

“Portable Talent”: Developers and users experience easier access.

3. Main challenges

Competitiveness: Compared with traditional games, Web3 games are still at a disadvantage;

Instability: The stability of the game economy needs to be improved;

Longer development cycle: Web3 games are more difficult to iterate.

Favorable factors

1. E-sports + market growth

E-sports-driven games are more popular;

The game market will continue to expand to the mobile terminal;

The gaming industry is easy to attract investment, which in turn drives the market’s substantial growth.

2. Content “owned” by the user

Gamers prefer to “own” content themselves;

Gamers have a better chance of profiting;

Increased secondary sales can boost game revenue.

unfavorable factors

1. Web3 game mechanism design

For multiple game projects running in the open market, the control difficulty is relatively high;

A long development cycle will increase the risk of game mechanics;

Product/market fit is difficult to assess.

2. Game distribution issues

Major game distribution is still controlled by big companies like Apple;

The encryption integration of games is still limited;

The mobile-based crypto gaming market is still in its infancy.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/explore-which-crypto-trends-could-spark-the-next-bull-run/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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