Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the views of the editorial team at crypto.news.
At first glance, the current landscape appears vastly different from a year ago, with Bitcoin (BTC) more than doubling from $16,000-17,000 and the overall cryptocurrency market cap comfortably surpassing a trillion dollars.
While these price increases may indicate a form of recovery driven in part by speculation surrounding the approval of Bitcoin ETFs, the industry has not made significant strides as most of the obstacles to crypto adoption remain unresolved.
Despite the challenging crypto winter, the resurgence of bullish sentiment on X (formerly Twitter) is a positive development. However, in order to make meaningful progress in 2024, the industry needs to take a step back and slow down. Otherwise, it risks repeating the same market cycle with only minor improvements or variations.
The cryptocurrency industry is still in its infancy, just over a decade old, and lacks solid use cases. This youthful stage will not last forever, and the status quo should not either.
Establishing a strong foundation for crypto adoption requires a slower pace. While the rapid evolution of the industry can be exciting, it often leads to a focus on the new rather than the tried-and-tested. It is essential to consider what has already been successful outside of web3 and apply those learnings to the crypto space.
Metaverse-focused utilities like NFTs, web3 gaming, and SocialFi are innovative but may not appeal to mainstream users. Instead, established payment systems and real-world assets offer a more practical and familiar entry point for adoption. These utilities are stable, reliable, and suitable for institutional and mass adoption, as evidenced by the data and metrics.
In 2023, legacy players like Visa and Mastercard began supporting crypto usage, paving the way for further integration in the coming year. Improved accessibility, regulatory compliance, and stable utilities will form the backbone of adoption, providing a reliable infrastructure for users.
Moving forward, sustainable business models will take precedence over speculative schemes and empty promises in 2024. Projects that focus on value creation and revenue generation will thrive, while those lacking substance will be phased out.
Web3 infrastructure still has room for improvement, particularly in terms of security and user experience. As mainstream users transition into self-custody, web2.5 products and services that combine decentralization with efficiency from web2 will play a crucial role in driving adoption.
Overall, the industry is moving towards a more mature and sustainable future, where practicality and patience will be key. Progress through regression in 2024 will bring the industry closer to widespread adoption and significant breakthroughs.
Veronica Wong, CEO and co-founder of SafePal, has been at the forefront of addressing security, UI, and UX issues for crypto users. With a wealth of experience in Fortune 500 companies, Veronica is dedicated to advancing the crypto space through innovation and user-centric solutions.