Author: @jessewldn; Compiled by: Vernacular Blockchain

In the past two years, the encryption industry has entered a period that can be called a "consolidation phase." During this time, the industry focused more on optimization efforts rather than on new innovations “from scratch.” This integration and optimization is mainly reflected in the following three aspects: 1) Infrastructure 2) Application scenarios 3) Top winners

01 Optimization and integration trends in the encryption industry in 2024

1) Optimization: the foundation in 2024 Facilities

The maturity of infrastructure makes encryption technology no longer a bottleneck for industry development. This achievement results from the optimization of a large number of technologies rather than a disruptive new architecture. These optimizations may have enabled the encryption industry to prepare for the "bull market" for the first time, including:

·More abundant block space;

·The development tool chain is increasingly improving;

·User transaction fees are almost zero or even completely eliminated;

·The complexity of wallet usage is significantly reduced;

·The user experience of on-chain applications is gradually comparable to that of Web2 Consumer grade products.

We are currently only in our 12th to 18th month of abstraction, performance improvements, and reliability enhancements to this infrastructure. For example, the development of Ethereum L2, the stability improvement of Solana, and the application of wallet abstraction technology in actual production environments are nothing more than this. Although there has been development, it has not yet reached the optimal level.

2) Integration: Application Scenarios and Top Winners in 2024

Two key application scenarios have gradually matured: speculation and stablecoins. These two scenarios have almost run through the entire development process of the encryption industry:

·Bitcoin (2009) is the earliest speculative asset in the encryption industry;

·Stablecoins are the earliest One of the Token applications (USDT started in 2014).

Today, these two scenarios have reached a new peak due to infrastructure optimization.

·The pinnacle performance of speculation: Memecoins

Memecoins are the ultimate expression of speculation, and now their creation and transactions have become extremely convenient and low-cost.

·Seamless connection of stablecoins

Tools like Bridge make the issuance and trading of stablecoins more efficient than ever.

3) The ever-strong effect of top winners

With the development of the industry, past top winners are further consolidating their positions and their advantages continue to expand. These winners include:

·Public chains: Solana and Ethereum;

·Wallet: Phantom;

·DEX: Uniswap and Raydium.

These platforms have benefited greatly from the growth of stablecoins and speculative activity, and have been able to quickly adapt to market hot spots toAnd speculative games like Memecoins or NFTs.

02 The Next Stage of the Crypto Industry

As infrastructure bottlenecks gradually recede, two other major bottlenecks facing the industry have gradually emerged. These two bottlenecks have largely driven the current integration and optimization. stage, and hinders the industry’s further innovative breakthroughs from “zero to one”.

1) Bottleneck 1: Infrastructure issues

Infrastructure bottlenecks are gradually being eliminated. Technical optimization rather than breakthrough architectural innovation has brought significant progress to the industry. Today, blockchains have ample block space available, tools are maturing, transaction fees are close to zero, wallets are easier to use, and there are applications on the chain that rival the consumer experience of Web2.

2) Bottleneck 2: Hostile and uncertain regulatory environment

The second bottleneck to be solved is the unfriendly and uncertain regulatory environment. However, this problem seems to be gradually being alleviated. With Trump coming to power, the encryption industry is expected to usher in clearer regulatory rules in the United States, eliminate bad projects, and help positive players in the industry to grow and develop.

As infrastructure performance improves and the regulatory environment becomes clearer, the industry is about to face a breakthrough in the third bottleneck - the talent issue.

3) Bottleneck 3: Talent shortage

Since 2022, the number of new talents entering the encryption industry has been at a bottleneck. This is understandable, as negative press and an uncertain regulatory environment pose significant personal risks for founders. However, the lack of new talents has directly led to the stagnation of "from scratch" innovation in the industry.

I believe that this trend will begin to reverse next year, through the following two steps:

A. The leaders in the integration stage will continue to expand their advantages in these head projects Success may exceed everyone's expectations. Polymarket, for example, has proven this during this election cycle, and there will be many more like it in the future. As on-chain applications are gradually accepted by the mainstream (whether by consumers or institutions), we will see:

·Startups will go public one after another;

·More projects will be issued Token;

·Society’s expectations for the influence of the encryption industry will be readjusted.

This is the first step in inspiring a new generation of developers to gain a deeper understanding of the crypto industry. Only by attracting more new blood can the industry usher in the next real breakthrough.

B. A new generation of entrepreneurs will redefine the industry based on first principles. These new entrepreneurs will no longer be limited by traditional infrastructure and outdated ideas. They will carry out innovative experiments based on clear rules and around the core of "ownership" to bring new products and experiences to users.

03 Future Outlook: Finding Stability through Verification

Although the crypto industry is still full of volatility, with the arrival of new rules, new talents, and new ideas, we hope that in the next five years, we will be able to clearlyKnow for sure: whether the crypto industry can move beyond speculation and stablecoins to deliver more real value.

"Ownership" may become a core element of new products and networks that will grow faster with the help of financial incentives to build deep connections with users. Verification through breakthrough applications will become an important way to reduce long-term volatility.

The crypto market is still worth looking forward to in 2025. With Bitcoin continuing to break new highs, which track will be the first to break out the bull market in 2025?