Web3 Needs to Regress Before We Can Progress in 2024
On the surface, the crypto market seems to have recovered with Bitcoin (BTC) reaching new heights and the overall market cap exceeding a trillion dollars. However, despite these positive signs, the industry still faces significant barriers to adoption.
The Need for Slowing Down
While the recent resurgence of interest in crypto is encouraging, it’s crucial for the industry to take a step back and slow down in order to make meaningful progress. Without doing so, we risk repeating past mistakes without addressing key issues.
Although the crypto industry is relatively young and still developing, it’s important to acknowledge that there are still gaps in solid use cases. This youth won’t last forever, and we need to challenge the status quo.
Focusing on the Old and Battle-Tested
The fast-paced nature of the industry often leads us to focus on new and innovative ideas. However, instead of always looking for something new, we should also consider what has already been tried and tested outside of web3. Established payment systems and real-world assets provide a more viable foundation for adoption.
These utilities are familiar to mainstream users and offer stability and reliability. In fact, the total value locked for real-world assets is projected to grow up to $10 trillion.
Established Players Supporting Crypto
In terms of payment systems, major players like Visa and Mastercard are already making moves to support crypto usage. This trend will continue to gain momentum in 2024, making crypto more accessible for users.
Having convenient on and off-ramps for crypto, coupled with regulatory compliance, will be crucial for user acquisition and retention. These utilities will serve as the backbone for adoption, providing stability and reliability.
Moving Away from Speculation and Memecoins
While speculation has fueled the crypto space, it also creates volatility and instability that deter new entrants. To be taken seriously, the industry needs to move away from features like memecoin trading that don’t add much legitimacy.
In 2024, sustainable business models will take precedence over tokenomics and trendy narratives. Projects that focus on value creation and revenue generation will outperform those relying solely on hype-based marketing.
Improving Web3 Infrastructure
The web3 infrastructure is still in its early stages and cannot maximize the industry’s full potential. Decentralized exchanges (DEXes), for example, lag behind centralized exchanges in terms of trading volume and liquidity.
Mainstream users are more comfortable with custodial services, so centralized platforms act as a bridge into web3. This trend is growing, with platforms like Coinbase and Binance providing entry points into the crypto ecosystem.
Enhancing Security and User Experience
Security remains a significant concern in the web3 industry, with scams and exploits still prevalent. Improvements in user education, product UI/UX, and security infrastructure are necessary to make decentralization accessible, safe, and easy to use for mainstream users.
Achieving Breakthroughs through Regression
While it may seem counterintuitive, the “progression through regression” approach for web3 in 2024 will bring the industry closer to significant breakthroughs and mainstream adoption. By addressing key issues and focusing on sustainable models, we can pave the way for a more mature and successful crypto ecosystem.
Hot Take: The Path to Mainstream Adoption Requires Slowing Down
The crypto industry has made significant progress, but there are still barriers to mainstream adoption. To truly move forward, the industry needs to take a step back and focus on addressing key issues. This includes looking beyond new and trendy ideas and instead building on established payment systems and real-world assets. Improving web3 infrastructure, enhancing security, and prioritizing sustainable business models are also crucial. By slowing down and regressing in certain areas, the industry can make meaningful progress and pave the way for mainstream adoption in 2024.
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