Going all the way back to 2011 when Bitcoin dropped from $32 to under $1, we’ve heard the same refrain every time the market has taken a downturn: Crypto is dead. And, while the price of crypto is a meaningful indicator as to the health of the crypto industry, it’s not the only one. Interest, investment and activity in crypto continue to grow despite the bear market.
Before you start selling off the contents of your wallet, take a closer look at what some of the biggest names beyond blockchain are currently doing in Web3.
Here are five trends to watch:
1. Institutions Are Pouring Money Into Crypto
Over the past quarter, some of the most influential companies in the world have announced investments in Web3, and the list continues to grow. In the past 12 months 40 companies (including Google, Microsoft, Blackrock) have invested roughly $6 billion in blockchain startups and projects. For these and other major institutional brands “buy the dip” takes on a new meaning as companies look to create long-term value for themselves and their customers via Web3.
2. The New B2C Is Buy, Sell and Pay in Web3
Not only are companies putting major dollars behind their investments, but many mainstream companies are engaging their customers with Web3 offerings. Companies like Fidelity, Goldman Sachs and Blackrock are now offering the ability to buy and sell bitcoin to their customers. Others like McDonalds, Mastercard and GameStop have announced that they will allow their customers to use BTC and other cryptocurrencies as a payment mechanism for their products and services.
3. Entire Nations Are Embracing Crypto
It’s not only companies, but entire countries that are embracing the Web3 revolution. From Japan to Bahrain to Nigeria to Dominica – countries are recognizing the tremendous economic and cultural opportunity that crypto offers to their populations, from technological innovation and entrepreneurism to creative initiatives and social connectivity. Perhaps there is no better example of a country embracing crypto than Ukraine, where President Volodymyr Zelensky has solicited donations to fund relief efforts for his people.
4. Web3 Is Opening New Doors in Entertainment and Community Engagement
Legacy brands are adopting crypto beyond simple trading and payments. Starbucks is enabling NFT journeys and Coca-cola, LG, Reddit and eBay have all announced major NFT projects. According to a recent Deloitte study, sports NFTs alone will generate more than $2 billion in 2022. And FIFA, the world’s premier football organization, announced this year that blockchain protocol Algorand will be developing a wallet and NFT platform for world cup fans to purchase NFTs of notable soccer moments. Moreover, iconic sports brand Nike this year launched a line of digital collectibles, which has already garnered more than $1 billion in NFT sales, according to Dune Analytics.
5. Crypto Innovation and Development Continues to Grow
Prices across the board may be down but Web3 development and entrepreneurship continue unabated in this crypto winter. Venture capital firms have invested more than $20 billion in new crypto projects in 2022 and more than four thousand new crypto projects with active communities and some potential or actual utility have already come to market this year. Therefore, there are tremendous opportunity in helping to develop Web3 and there players in the industry that are actively investing in innovative crypto projects as well as partnering with highly recognized brands that to fully utilise see the potential this technology holds, to empower entrepreneurs and sustain communities. While skeptics may continue to argue that there is no future in Web3 and cryptocurrency, this growth and development across the sector is a strong indicator that the industry remains strong despite market conditions. Crypto is far from dead. In fact, we may be seeing a new beginning.
About Rohit Wad:
Before the days of YouTube, TikTok, and Instagram, Rohit worked on early Microsoft projects like Excel and Sharepoint, which are still used today.
