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The encryption industry is shifting towards consumer applications, leading the next wave of rise.
Consumer applications become the new focus of the crypto market
In recent years, the focus of the encryption industry is shifting from infrastructure construction to consumer-oriented applications. As core technologies mature, it is no longer architectural innovation that creates real value, but rather products that can attract users' attention.
The current market liquidity is relatively stagnant, with the main increase coming from institutional purchases of BTC/ETH, rather than speculative capital within the ecosystem. However, as the regulatory environment gradually clarifies, especially with the friendly turn of U.S. policies, a new wave of development is expected to be unlocked. This will attract more Web2 users who focus on practicality rather than underlying technology.
The market is rewarding projects with real users and substantial revenue, such as Hyperliquid and Pump.fun. In contrast, some highly valued infrastructure projects that lack a user base are underperforming. This indicates that a purely technology-driven approach is struggling to replicate the high returns of the past.
Currently, the consumer-level tracks that have achieved product-market fit include: trading/perpetual contracts, meme coin issuance platforms, prediction markets, etc. The directions that may emerge in the future are: one-stop encryption financial service platforms, and entertainment/social platforms utilizing blockchain monetization mechanisms.
The AI and gaming sectors are still in their early stages. AI applications require more secure infrastructure support, while Web3 games need to break through the limitations of "mining economy" and genuinely attract users with gameplay.
When investing in consumer applications, more attention should be paid to factors such as distribution capability, user experience, and liquidity, rather than purely technological innovation. In the coming years, applications that can transform encryption technology into the daily experience of ordinary users are most likely to deliver excess returns.