Memecoins
Memecoin, staking-with-a-twist, DeFi nationalization of new verticals
The wildest cryptocurrency speculators have turned their attention to the latest trends
Bettmann Archive
Having recently reflex As cryptocurrency markets develop following 2021’s bull run, I also reflected on trends in the broader Web3 industry and the scale of change we’ve witnessed in just three years.
As the biggest breakout stocks of 2021, NFTs are a case in point. Even as cryptocurrency prices skyrocketed in early March, NFT
NFTs
markets were dogged by liquidations, with prices collapsing up to 30% for some once popular collections. While the format still offers plenty of opportunity for utility, the market hype simply hasn’t arrived until 2024.
Instead, wild cryptocurrency speculators have turned their attention to the latest trend: memecoins. However, Karim ChaimCEO of blockchain infrastructure project Web3Intelligence, which develops the Dopamine app, believes this is more than just speculation:
“Memecoins mirror the trajectory of NFTs but with distinct nuances. Memecoins have become the emblem of how digital assets can encapsulate and stimulate engagement around cultural phenomena. More than just speculative assets, memecoins in 2024 represent a democratization of influence previously monopolized by venture capitalists and institutional investors. This shift towards community-driven value creation and marketing is profound and illustrates the potential of decentralized networks to empower individuals and communities.”
The news that hedge funds are too prove susceptible to the allure of canine-themed cryptocurrencies, gives considerable credence to his point – and highlights once again the pace and scope of acceptance in recent years.
DeFi, another trend that characterized the 2021 bull market, has evolved rather than transformed. Whereas the 2022 collapse of LUNA
MOON
could have been a death knell for the industry, the emergence of Ethereum
ET
staking has turned into a timely opportunity. While loans and DEXs were at the top of the list DeFi Ranking TablesNowadays, it’s about maximizing your staking returns with liquid staking on Lido and restaking on EigenLayer. The latter is proving to be a poor solution for VCs, with adjacent Aligned Layer and Othentic protocols increasing a combined total of $24 million at the end of April. This happened after the EigenLabs epic $100 million relaunch earlier this year – one of the rounds that is helped to resuscitate the previously reported Web3 funding scene.
However, perhaps a slower-burning trend is DeFi’s creeping presence into otherwise unrelated sectors, creating previously unexplored avenues of value creation and revenue. GameFi was the first example and has also gained prominence in the 2021 market, thanks largely to the popularity of Axie Infinity.
This time, Web3 games have made progress since their first iteration based on startups experimenting with the technology. Ubisoft said yes working on Web3 Games and plans to release two titles later this year. The company has 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 as many as 35 million players, speaks to the appetite for rewards, as long as the public can see the value.
However, the DeFi makeover is expanding to other verticals: SocialFi is an example of a relatively new segment introducing financial elements to social media. Another is SportFi, led by Chiliz
CHZ
, the project that became synonymous with fan tokens during the latest bull market thanks to high-profile collaborations with teams including PSG, Juventus and AC Milan. The project is now looking to consolidate its position at the intersection of Web3 and sports, as CEO and founder Alexander Dreyfus explains:
“We have integrated and collaborated with several game titles in the field of football management, metaverse experiences and fitness games. It is also noteworthy to address the continued development of Web3-based fantasy games in collaboration with major sports rights holders such as Ligue 1 in France, K League in Korea and the United Arab Emirates.
United Arab Emirates
Lega Pro. This innovative approach allows traditional brands to venture into the gaming community, which opens up additional revenue streams through digital assets and improved fan engagement mechanisms.”
So memecoin, staking with a twist and the DeFi-financialization of new verticals for 2024: who’s betting on what will emerge in 2027/2028?