Crypto’s Role in the Future: Promise or Pitfall?

Did you know that unique applications, seamless onboarding and organic growth are the key to success in the ever-evolving world of cryptocurrency? Yes! It’s easy to get swept up in the hype surrounding new projects and protocols. However, despite the growing number of innovations, one thing remains clear: liquidity is limited, while product ideas are not. This creates a paradox where new projects can often dilute the value of existing ones, making it harder for real, long-term growth to emerge. The key of it is actually by observing! How? Let me break it down in detail for you.

Liquidity is Being Spread Thin Across Countless Protocols

As of 2023, the total market capitalization of all cryptocurrencies is over $1 trillion, with Bitcoin, Ethereum, and other top cryptocurrencies dominating the space. But while the overall market is large, liquidity—essentially, the ability to easily buy and sell assets—remains scarce, especially across newer protocols. The reason? The sheer number of projects and protocols vying for a piece of the pie.

According to research by CoinGecko, there are currently over 24,000 cryptocurrencies listed on their platform, many of which are competing for attention and liquidity in a market that can only sustain so much at once. This oversaturation of projects spreads liquidity thin, making it harder for individual projects to gain traction. As a result, innovation often takes a back seat, with many new initiatives offering only incremental changes to existing ideas rather than groundbreaking, unique applications.

This is why the real challenge today isn't about creating more scalable blockchains or adding to the pile of similar protocols. The real opportunity lies in creating applications that stand out—that offer real utility to users beyond just the crypto-native audience.

Unique Applications Are Actually the Key to Success

To drive the next wave of growth in the crypto space, it's not enough to just focus on building better infrastructure. The key to success lies in developing unique applications that provide real value to users. For instance, why would you create something that would not be beneficial for the public at large in the first place?

Take, for example, the rise of decentralized finance (DeFi). Platforms like Uniswap, Aave, and Compound have proven that decentralized financial services can be incredibly useful, even though they may still be relatively niche. But the next phase of growth will require applications that appeal to a broader audience.

One success story in this regard is Polymarket, a decentralized prediction market platform that allows users to bet on real-world events. Unlike traditional DeFi applications that primarily attract crypto enthusiasts, Polymarket has captured the attention of everyday users, many of whom have no prior experience with cryptocurrencies. In 2023, Polymarket reported over $200 million in total trading volume, showing that there’s significant demand for unique, user-friendly applications that bridge the gap between the crypto world and the real world.

Similarly, the TON (The Open Network) blockchain, initially designed by Telegram, has developed seamless applications like the TON wallet, which makes interacting with blockchain technology as easy as sending a text message. Projects like these demonstrate that user-friendly, useful applications are what will drive the adoption of crypto at scale.

Onboarding Non-Crypto Users Is Essential

One of the most significant barriers to mass adoption of blockchain technology is the steep learning curve for everyday users. The complexities of managing private keys, understanding gas fees, and dealing with wallets can be overwhelming to those unfamiliar with the space. If crypto is to become mainstream, it needs to be accessible and simple to use.

Projects like Polymarket and TON are good examples of platforms that have found success by focusing on seamless onboarding experiences. By reducing friction and making the technology intuitive, these projects have been able to attract not just crypto enthusiasts, but also non-crypto users who may have never considered blockchain technology before.

As blockchain-based applications continue to evolve, it's crucial that developers focus on creating interfaces and experiences that don’t require users to be blockchain experts. Let’s face it, if crypto is going to become part of everyday life, it needs to feel and be as simple and natural to use as traditional apps like PayPal or Venmo. Integration is the first step to adaption!

Launch Timing and Organic Growth Matter

In addition to building useful applications and ensuring seamless user experiences, timing and growth strategies play a critical role in determining a project’s success. The crypto market is volatile, and launching a product during a downturn or in a bear market can be challenging. But this is also the perfect opportunity to build a solid foundation.

Coinbase highlighted that projects that prioritize organic user adoption over gimmicks like airdrops, tend to see better long-term results. For instance, Uniswap and SushiSwap, two of the largest decentralized exchanges (DEXs), initially grew through word-of-mouth and organic engagement, rather than relying heavily on incentives to attract users.

Launching during favorable market conditions can help a project gain the attention it deserves, but ultimately, organic growth—powered by real user adoption and community support—is what drives long-term sustainability. This is why focusing on building a product that people genuinely want to use, rather than relying on short-term marketing tactics, is crucial for success in the crypto space.

The Road Ahead: A New Era of Innovation and Inclusion

As the crypto industry matures, it will be the projects that focus on unique, value-driven applications, seamless onboarding, and organic user growth that lead the way. The era of chasing quick profits through gimmicks or copying existing ideas is over. The future of crypto lies in making blockchain technology accessible to the masses, creating products that solve real-world problems, and ensuring that users have a smooth, enjoyable experience along the way.

The market is crowded, and liquidity is spread thin, but the potential for innovation is boundless. With the right focus on building useful, user-friendly applications and creating lasting communities, the crypto space can evolve into something truly revolutionary. The future is bright, and those who focus on value, not hype, will be the ones to lead the charge.

Victor Tan | CEO of TrinityPad