The Crypto Assets Industry in the Post-Pandemic Era: Reflections After the Token2049 Conference

The Token2049 conference held in Singapore has just concluded, and cryptocurrency entrepreneurs and practitioners from around the world are gradually leaving. After this period of intense communication, there are some new insights regarding the narrative of the new market cycle.

This year, the overall structure of the Crypto Assets industry has been further improved:

1. Omnichain remains the mainstream narrative in the Layer0 space

The emergence of full-chain interoperability and the Omnichain Fungible Token ( OFT ) new standard provides users with a more user-friendly and efficient cross-chain transfer solution. OFT has been adopted by multiple projects, such as a certain Layer 2 project, a certain stablecoin project, etc.

2. Layer 1 is no longer the focus of market attention

There are divergences in the current market cycle regarding Layer 1 projects. Although the new public chains in the Move ecosystem have garnered some attention, other new public chains that focus on DeFi, NFTs, or multilingual support have not gained widespread consensus. Many no longer believe that a new public chain will emerge that surpasses Ethereum, even if they think Ethereum may not be the ultimate solution.

3. The Layer2 landscape is basically determined, and the middleware is ready.

Optimistic Rollups are primarily led by two major projects, while the leading ZK Rollups/zkEVM include several well-known projects. Supporting middleware has also been put in place, including decentralized orderer networks, ZK proof generators, and hardware accelerators.

4. There are plenty of cash cow projects in the middleware field.

After ETH 2.0, LSD( Liquid Staking Derivatives) have become the second "cash cow" business following Bitcoin PoW mining. Under the Ethereum PoS mechanism, the annual output value of Staking exceeds 1 billion USD. The MEV( Maximum Extractable Value) track has also begun to preview future profit distribution mechanisms before the implementation of Danksharding.

5. High Yield Rates Foster LSDFi and RWA Application Opportunities

ETH Staking returns have become the "Treasury Yield" in the Crypto Assets field, and LSDFi further enhances the yield for ETH holders. Some emerging DeFi protocols are rising due to capturing more LSD tokens. Meanwhile, the high yields of U.S. Treasury bonds are pushing RWA( real-world assets) to the forefront.

6. Lowering the User Experience Threshold Becomes a Fundamental Requirement

Intent Centric( has become a recent hot topic, with multiple projects dedicated to solving the issues of protocol usability and maximizing user benefits. The TG bot, as one of the practical applications of Web3+AI, is also quickly gaining market attention.

7. Crypto Assets and AI Integration Become New Trends

During this Token2049 event, multiple Crypto Assets and AI combined entrepreneurial projects have emerged, mainly including on-chain interaction automation, To Earn empowering AI business, Web3 version of ChatGPT, and ZKML) zero-knowledge machine learning(, among other directions.

As an important hub connecting the East and West in the Web3 industry, the Token2049 event in Singapore attracted over 10,000 participants. The main venue's booths were mainly occupied by public chains, Layer 2 projects, exchanges, and payment solution companies, while the Side Events were mostly hosted by leading infrastructure projects or venture capital firms.

Despite changes in the market environment, the industry still needs to continue building and innovating.

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