Memecoins
Memecoins, Staking with a Twist, DeFi Nanciarization of New Verticals
Crypto’s wildest speculators have turned their attention to the latest trends
Bettmann Archives
Having recently reflected Regarding the development of crypto markets since the 2021 bull run, I also reflected on trends in the broader Web3 sector and how much change we’ve seen in just three years.
As headline-grabbing stocks in 2021, NFTs are a good example. Even though cryptocurrency prices soared in early March, NFT
NFT
markets were rocked by sell-offs, with prices falling up to 30% for some once-popular collections. While the format still offers plenty of opportunity for utility, the market hype simply hasn’t carried over into 2024.
Instead, crypto’s wildest speculators have turned their attention to the latest trend: memecoins. However, Karim HaimCEO of the blockchain infrastructure project Web3Intelligence, which develops the Dopamine application, believes that this is much more than just speculation:
“Memecoins mirror the trajectory of NFTs but with distinct nuances. Memecoins have become emblematic of how digital assets can encapsulate and drive engagement around cultural phenomena. More than just speculative assets, memecoins represent in 2024 a democratization of influence previously monopolized by venture capitalists and institutional investors. This shift toward community-driven value creation and marketing is profound, illustrating the potential of decentralized networks to empower individuals and communities.
The news that even hedge funds are to be sensitive to the appeal of dog-themed cryptos, lends considerable credence to his view – and once again highlights the pace and scale of acceptance in recent years.
DeFi, another trend that characterizes the 2021 bull market, has evolved rather than transformed. As LUNA collapses in 2022
MOON
could have sounded the death knell for the sector, the emergence of Ethereum
ETH
staking turned into a timely opportunity. While loans and DEXs were once at the top of the DeFi Leaderboards, these days it’s all about maximizing staking returns with liquid staking on Lido and retaking on EigenLayer. The latter is proving to be catnip for venture capital firms, with restoration-adjacent protocols Aligned Layer and Othentic generating a combined total of $24 million end of April. This follows the epic of EigenLabs 100 million dollars rise earlier this year – one of the tricks that is helped to resuscitate the previously declining Web3 funding scene.
However, a perhaps slower trend is the creeping presence of DeFi in otherwise unrelated sectors, creating previously unexplored avenues for value and revenue creation. GameFi was the first example of this, and it has also risen to prominence in the 2021 market, largely thanks to the popularity of Axie Infinity.
This time around, Web3 games have progressed from their first iteration based on startups experimenting with the technology. Ubisoft said it was work on Web3 Games and plans to release two titles later this year. The company also expanded its gaming team and licensed some of its intellectual property to Web3 gaming companies. The recent viral popularity of Notcoin, a “social clicker” game that has managed to attract an impressive 35 million players, speaks to the appetite for rewards, provided the public can see their value.
However, the DeFi makeover extends to other verticals – SocialFi is an example of a relatively new segment introducing financial elements into social media. Another is SportFi, led by Chiliz
CHZ
, the project that became synonymous with fan tokens during the last bull market thanks to high-profile collaborations with teams including PSG, Juventus and AC Milan. The project now seeks to consolidate its position at the intersection of Web3 and sports, as CEO and founder. Alexandre Dreyfus explain :
“We have integrated and collaborated with several game titles in the areas of football management, metaverse experiences and fitness games. Also worth discussing is the ongoing development of Web3-based fantasy games in collaboration with prominent sports rights holders such as Ligue 1 in France, K League in Korea and the United Arab Emirates.
United Arab Emirates
Pro League. This innovative approach allows traditional brands to venture into the gaming community, opening up additional revenue streams through digital assets and enhanced fan engagement mechanics.
So memecoins, staking with a twist and the DeFi-nancialization of new verticals for 2024 – who’s betting on what will emerge in 2027/2028?