Gate.io CEO Dr. Han Lin delivered an insightful
presentation at the Asia Blockchain Summit 2024, focusing on the
evolution of the cryptocurrency industry. Dr. Han explored the
current state of the crypto sector, emphasizing that while the
industry's growth has been impressive, there remains substantial
potential for further expansion.
The Current State of Blockchain and
Web3
Dr. Han explained that throughout its existence, the industry
has seen remarkable improvements and technological advancements
that have made the blockchain more efficient. Furthermore, in
recent years governments and regulatory bodies have begun to
recognize the importance of blockchain and work to create
supportive environments where the industry can continue to thrive.
More users are adopting blockchain technology every day, which is
making the user base of this technology more diverse and impactful.
Now more institutions are showing interest in blockchain
technology, proving that the industry is becoming more mature and
stable.
Dr. Han's speech discussed the evolution of crypto across seven
distinct areas: The Launch, The Tokens/Coins, The Exchanges/Trading
Platforms, Trading Volume, Market Cap, The Chains, and The
Users.
The History of Crypto
The Launch
Dr. Han began by stating that initially people mined Bitcoin
with computers, and later altcoins borrowed this same idea. Later,
blockchain projects began to use ICOs, IEOs, and IDOs to
launch.
-ICOs pioneered the new wave of crypto
fundraising but have declined in popularity due to regulatory
scrutiny and market evolution.
-EOs enhanced credibility through
established exchanges, providing a safer and more reliable platform
for both investors and projects.
-DOs allowed projects to launch
directly on decentralized exchanges, democratizing access for
participants. This method reflects the shift towards more
decentralized and community-driven approaches.
Shift Toward Community-Driven Launches
There is a noticeable trend towards community-driven launches in
the cryptocurrency industry. Memecoins, for instance, have garnered
significant attention and participation due to their reliance on
strong community support and viral marketing. Additionally, there
has been a marked decline in ICO launches as the industry shifts
towards more community-focused methods like airdrops. This shift
indicates a maturation of the market, where community participation
is increasingly prioritized.
The Tokens/Coins
The tokens/coins of focus were BTC and ETH before, and then in
2017 there was a shift to stablecoins. Later centralized exchange
(CEX) tokens became popular. In 2020, DeFi took over and then
GameFi in 2022. Now memecoins are popular (although they have a
long history before the present day). The number of tokens launched
every year has also seen a dramatic increase.
The Exchanges/Trading Platforms
Trading platforms offer security and liquidity to millions
globally. Solana and Base are popular choices for launching new
tokens due to their cost-effectiveness. Dr. Han noted that industry
veterans still recall the Mt. Gox launch and subsequent hack, as
well as the rise and fall of FTX. Before 2018, launching a
centralized exchange (CEX) was relatively inexpensive. However,
increased competition and higher barriers to entry post-2018 have
made this more challenging. Conversely, the decentralized exchange
(DEX) landscape remains more accessible, with lower costs for
launching a DEX.
After the DeFi summer a lot more DEXs were launched. The market
share when compared to CEXs is still quite small, but it is
growing. CEX's still dominate, with a higher percentage of the
overall trading volume.
Trading Volume
The trading volume of other coins besides the top 10 is
shrinking. This is because the trading volume is concentrated in
the top coins. Dr. Han continued with a word of caution to people
buying the smaller coins, stating that they should be careful
because there might not be enough liquidity if they later wish to
sell. Overall, the trading volume is still concentrated heavily in
BTC, ETH, and stablecoins.
The Market Cap
Dr. Han described that the market cap of BTC is close to FB and
he predicted that in one or two years BTC will surpass Facebook's
market cap. From 2022-2023 BTC's market cap decreased due to the
bear market, but this year it is growing. BTC still dominates among
other tokens/coins with more than 50% of the total crypto market
cap.
The Chains
Blockchains act as the infrastructure for the entire industry.
Solana is currently dominating and is trying to surpass ETH as the
most popular blockchain. ETH still has the highest DEX trading
volume and TVL, as well as the most active developers.
The Users
Over the past 20 years the number of internet users has grown
substantially. However, although the overall numbers are less,
crypto users are growing even faster. 11 years ago there were only
1 million cryptocurrency users, and now everyone knows about crypto
and more than 500 million people are considered crypto users.
Conclusion
Dr. Han concluded by stating that data suggests that, despite
progress, blockchain technology is still relatively new, and we are
still at the dawn of a revolutionary era. He emphasized that as the
industry continues to evolve, building connections and fostering
collaboration will become increasingly important. Dr. Han urged
industry leaders and newcomers to persist in pushing the boundaries
and exploring the vast possibilities of blockchain technology.
Media Contact:
Elaine Wang at elaine.w@gate.io
Disclaimer:
This event is for professional knowledge sharing and networking
purposes only. The information provided in this press release is
not a solicitation for investment, nor is it intended as investment
advice, financial advice, or trading advice. It is strongly
recommended you practice due diligence, including consultation with
a professional financial advisor, before investing in or trading
cryptocurrency and securities.
elaine.w@gate.io