Behind the scenes of crypto volatility, unwinding of leverage, and rising regulatory uncertainty, less-talked-about innovations are brewing. While many crypto developments are still early experiments, they offer a view of the ways these technologies can address a wider range of business applications beyond just payments and store of value.
Expanding the crypto ecosystem
A few years ago, a lot of crypto innovation focused on two areas: scaling blockchain technology and building out the infrastructure for creating and trading digital assets. We saw a rise of decentralized finance (DeFi), which helped fuel the rally across multiple emerging protocols that expanded the size of the ecosystem. Nonfungible tokens (NFTs) expanded crypto’s reach into mainstream awareness and culture.
Now we find ourselves at the tail end of that upcycle, but with many more users, innovators, and unspent venture capital funding working in this space. So, the question is: What drives the next expansion wave? We believe that the next upcycle may see the scope of crypto technology widen beyond just scaling transactions, DeFi, and digital art.