Author: AlΞx Wacy , Crypto Researcher
Compiled by: Felix, PANews
Introduction: As the next round of crypto bull market may be fully launched, this article predicts the potential narratives that are expected to be in the next cycle, namely RWA, DeSci, AI, DePIN, GameFi and DeFi 3.0.
The next bull market may be the last large-scale rapid rise stage of cryptocurrencies, mainly considering the intervention of the US SEC in the market. Regulation is inevitable and will eventually impact the market, and is expected to occur during the ATH period of the next bull market. But regulation does not mean that the market will never grow again or that the crypto market will be completely abandoned, but that the revenue cycle will be significantly lengthened, new projects may be strictly regulated and the technology may be favored.
As shown in the figure, Bitcoin’s historical highs in the next bull market cycle (2024-2025) are expected to fully explode as early as mid-2024:
- Conservative target is $94,000
- The average goal is $130,000
- The peak price for this cycle is expected to be $180,000
As the next round of crypto bull market may be fully launched, this article predicts the potential narratives that are expected to be in the next cycle, namely RWA, DeSci, AI, DePIN, GameFi and DeFi 3.0.
RWA
In 2023, asset tokenization and RWA attracted significant interest from retail and institutional investors. This can be attributed to the convergence of professional management products and digital asset mechanisms.
Institutions such as Goldman Sachs and JPMorgan are testing digital asset products aimed at saving costs and increasing efficiency. The participation of these giants has brought more and more confidence to the industry.
RWA is a conduit for tangible and intangible assets in the physical world, making them cryptographically accessible. These assets may include: Treasury bills, commodities, real estate, private credit, collectibles, etc.
Some representative projects:
- Centrifuge (CFG): On-chain points
- IX Swap (IXS): DeFi platform for security token trading
- Clearpool (CPOOL): Credit Market
- Polytrade Finance (TRADE): Blockchain-based trading platform
Related reading: In-depth analysis of the current implementation path of RWA and the prospects of future RWA-Fi
DeSci (decentralized science)
DeSci is a movement dedicated to building public infrastructure that promotes the fair and equitable funding, creation, review, certification, storage, and dissemination of scientific knowledge.
DeSci envisions an ecosystem that encourages scientists to collaborate openly and gain recognition for their research. DeSci's drive has the potential to alleviate the following six scientific pain points: research funding, access to research and awareness, intellectual property ownership, reproducibility and replicability, communication and collaboration, peer review and publication.
Innovative DeSci has the ability to address many challenges that exist in traditional science. The picture below shows DeSci's solution to several traditional scientific problems.
The development prospects of DeSci are actually greater than imagined. Some representative projects:
- Data Lake (LAKE): A global medical data donation system using blockchain technology to support medical research and AI
- Solve.Care (SOLVE): A healthcare platform that redefines care coordination with blockchain
- VitaDAO (VITA): First DAO to launch a biotech company focused on funding longevity research
- GenomesDAO (GENE): Private and auditable monetization of genomic data using DeFi
Related reading: Decentralized Science DeSci Practical Observation: Latest Progress and Operational Characteristics
AI
The strength of AI is its ability to recognize patterns. While the ethos of decentralized currencies in the crypto world is admirable, its current execution is flawed. The potential for AI to be applied to cryptography is limitless. Although as early as January 2023, there were already many AI concepts being hyped on the market, and some projects have made significant progress, they are still in the early stages of development.
Additionally, as Coinbase highlighted, AI-powered blockchain has the potential to solve many problems. The convergence of these two technologies can propel both industries to new heights. It’s worth noting that just a few years ago, opportunities in cryptocurrency and artificial intelligence were quite limited.
Some representative projects:
- Autonolas (OLAS): A unified platform for automation, oracles and shared AI
- ChainGPT (CGPT): AI model for blockchain and cryptography
- Opentensor (TAO): A blockchain-based machine learning network powered by an open source protocol
DePIN (decentralized network hardware infrastructure)
DePIN leverages blockchain to allow millions of people to co-deploy and manage trustless and permissionless infrastructure that is programmatically driven.
Although DePIN is currently a relatively small emerging player in the crypto industry, its growth potential is huge. This model enables the creation of more powerful networks in various industries including telecommunications, energy, mobile and storage.
DePIN aims to use blockchain, token incentives, and the Internet to solve fundamental world problems. Its potential market value is approximately US$2.2 trillion (in the real world) and may reach US$3.5 trillion by 2028, which is much higher than Current crypto market cap.
Some representative projects:
- Wicrypt (WNT): A decentralized mobile internet sharing and monetization network
- GenesysGo (SHDW): decentralized storage, computing and network orchestration
- GenesysGo (HNT): Decentralized wireless infrastructure based on Solana
Related reading: When encryption technology meets the physical world: How to seize new opportunities in DePIN’s tens of billions of dollars market?
GameFi
The gaming industry is experiencing tremendous growth, with gaming giants such as Ubisoft, Square Enix, Activision Blizzard and others now frequently showing a preference for blockchain-based games. For the average player, GameFi or Web3 games are the gateway to cryptocurrencies.
There are more than 2.7 billion gamers of all ages around the world, so gaming is a large-scale popularity area that cannot be ignored for cryptocurrency today. Blockchain-based games are not only entertaining, but also educational, and can even cultivate children’s financial knowledge from an early age.
Some representative projects:
- Echelon (PRIME): Echelon chain game platform will launch two games, namely Parallel TCG (card game) and Parallel Colony (simulation game)
- Photo Finish (CROWN): Innovative virtual horse racing ecosystem
- Epik Prime (EPIK): Aims to Become the Global Leader in Brand Integration of Digital Products
Related reading: Inventory of popular blockchain games: What are the new possibilities for blockchain games in the future?
DeFi 3.0: Lending, Perps and LSD
DeFi 3.0 will become the foundation of the DeFi industry in the next few years. Since the beginning of the last bull market, the DeFi market has experienced significant growth, spawning many different ecosystems. It is expected that Lending and LSD will become the focus of the next bull market, providing users with maximum capital efficiency. Perps, on the other hand, will play an important role and generate significant revenue due to the influx of new traders into the space.
Some representative projects:
- Frax Finance (FXS): DeFi multi-purpose tool with products covering all possible niches
- Fluid (INST): The main representative of DeFi 3.0, including the entire ecosystem
- Mux Protocol (MCB): The first Perp DEX aggregator
While other narratives may demonstrate their strength in a bull market, it’s important to prioritize which narratives will drive mass adoption and drive progress. It is more beneficial to focus on the dominant narrative than to spread out the focus on multiple smaller narratives.
Related reading: Is it a good time to ambush for a long time? An article taking stock of six major encryption projects worth paying attention to
