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Disclaimer. This text is an opinion piece. The views expressed listed below are these of the writer and don’t essentially characterize or mirror the views of Crypto Briefing.
EthCC(7) was a convention of contradictions. On the one hand, the market has grown considerably 12 months over 12 months, and so has the convention’s model. Alternatively, the power on the ground felt extraordinarily muted.
The bull market vibes have dissipated as Bitcoin dipped under $60,000 and Ethereum spent a while below $3,000. With the general market cap nonetheless sitting over $2 trillion, groups hesitate to return to bear market builder mode, however have struggled with what to do subsequent.
Infrastructure crowds the ground
L1 and L2 took up, what felt like, nearly all of the area. There have been some old-timers like Starknet and ICP, in addition to some others like Mantel and Gas. If somebody felt like taking a visit down reminiscence lane, one might stroll by Aragon’s sales space.
The theme was clear: there may be loads of infrastructure vying for developer consideration. Wanting on the newest developer report numbers from Electrical Capital, there are simply over 26K month-to-month energetic builders, and with foundations dedicating tens of millions to incentives, this appears like their market.
On the identical time, there may be not a lot route so far as what to construct. AI stays a preferred buzzword, however AI by itself doesn’t make a client utility. 1inch was truly one of many few retail-facing firms to make a giant look, and that was troubling.
AI on everybody’s thoughts
Combining AI and web3 has been a sizzling development over the previous 12 months. Nonetheless, you may hear at ETHCC that the narrative was beginning to evolve. If beforehand loads of the proposed utilization targeted on DePIN and information markets, this week there was discuss of mannequin execution.
This might doubtlessly create a gap for ecosystems like ICP and Close to, which have been drifting a bit out of the trade’s view. A deal with AI can as soon as once more justify structure decisions and convey them to the forefront of builders’ minds.
Proper now loads of AI use circumstances, so far as web3, are both hypothetical or B2B targeted, which can restrict the influence of progress within the space on the ecosystem as an entire. Nonetheless, AI stays a key narrative for the trade.
The video games have disappeared
Notably, whereas most ecosystems have put collectively some type of a gaming technique, there have been only a few video games on the convention itself. That is comprehensible as studios are battling consumer acquisition and token launches.
Lots of the convention rooms have been named after video games, however mockingly these have been names of old style web2 video games. The absence of gaming studios mixed with this homage was like a silent commentary on the state of the sector.
The largest exception was the totally onchain gaming (FOCG) phase. Not solely was FOCG represented closely on the Starknet sales space, however there have been loads of facet occasions and a builder home to go to exterior of the primary venue.
The keenness of the groups coupled with recreation demos created a way of progress that was a lot wanted on the convention. It appears like years of R&D workouts and iterations are lastly main us someplace.
FHE is the shiny new factor
The crypto group appears to all the time be searching for the subsequent massive factor. With DePIN, AI, and modularity stalling considerably, FHE is trying to deliver again the sensation of paradigm-shifting expertise.
Zama, which had a sales space on the ground, seemed properly positioned to play on the narrative. The crew is properly capitalized, by a number of the high VCs, and it managed to get Fhenix and Inco to make use of its tech, positioning itself because the dominant entity within the area.
Whereas present capabilities are usually not very scalable, the crew says there are already firms constructing with the product. This offers hope that because the scalability limitations are addressed, the expertise might discover extra widespread adoption.
In search of customers
Widespread client adoption stays an elusive purpose, however Telegram and TON might provide a means ahead. Whereas TON had no sales space on the convention, the trending Telegram mini apps gave the impression to be on everybody’s thoughts.
The spectacular success of idle clickers on TON, has groups taking a look at Telegram as the brand new go-to consumer acquisition platform. Throughout the convention it was introduced that 1inch, Notcoin and Signal have partnered to run a TON accelerator program.
Excited to be a part of @ton_blockchain‘s first builder-driven acceleration program alongside @thenotcoin and @ethsign 🦾🧠 https://t.co/YqH7wl7GD1
— 1inch Community (@1inch) July 10, 2024
The present development has mini-apps onboarding tens of millions of customers at low value in a really quick period of time. Nonetheless, retention charges look like low, and changing these new customers to different purposes has not been correctly examined but.
If Telegram and TON reach onboarding tens of millions of latest customers to web3, we could lastly see the rise of client purposes within the trade. This in flip, would catalyze the natural utilization of the infrastructure that was being pushed so closely throughout the convention.
The place can we go from right here
The subsequent EthCC, set to be hosted in Cannes, raises expectations for a significant occasion. Nonetheless, 12 months is a very long time, and there’s a cloud of uncertainty hanging over the trade. We have to discover client adoption quickly.
Nonetheless, there’s a sense of higher acceptance within the area that may assist drive the seek for product market match. The presence of Solana, Polkadot, ICP, TON and others introduced again, if solely a bit of, the sense that all of us share the identical purpose.
The trade retains transferring ahead, and hopefully now, we will begin exhibiting the remainder of the world what we’ve been so enthusiastic about all these years as a result of a fantastic consumer expertise is value greater than a thousand phrases about “why blockchain?”.
Ilya Abugov (@AbugovIlya)
Disclaimer: This commentary shouldn’t be funding recommendation. It doesn’t purport to incorporate any advice as to any explicit funding, transaction or funding technique, or any advice to purchase or promote any funding. It doesn’t mirror any try and impact any transactions or render any funding recommendation.
This publish is solely for informational and leisure functions. It’s inherently restricted and doesn’t purport to be an entire dialogue of the problems offered or the dangers concerned. Readers ought to search their very own unbiased authorized, tax, accounting, and funding recommendation from skilled advisors. The views mirrored on this commentary are topic to vary at any time with out discover.
The authors or their associates have possession or different financial pursuits or intend to have pursuits in BTC, ETH, SOL, and will have possession or different financial pursuits or intend to have pursuits in different organizations and/or crypto belongings mentioned in addition to different crypto belongings not referenced.
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