In the current market, the catalysts for the bull market have become a hotly discussed topic. Can consumer applications such as SocialFi and GameFi replace Meme and become a new market driver?
Where is the innovation?
In the blockchain and cryptocurrency market, innovation is an important force driving market development. We are tired of seeing L2 projects launched at high valuations, and countless fork projects like Uniswap, Aave or Liquity. These projects lack innovation and fail to arouse market interest and investor enthusiasm. Infrastructure protocols, such as data availability, oracles, blockchain as a service, etc., although important, fail to bring new value-added points to investors.
Looking for Inside Catalysts for a Bull Market
In my last blog, I discussed the boring state of the market and the potential impact on the market from external catalysts like the ETH ETF and the U.S. government’s changing attitude toward cryptocurrencies. However, to truly drive the market toward a bull run, we need strong internal innovation that not only attracts new users but also sustains their interest and engagement.
Current market status
The current market relies heavily on points earning and Meme speculation. Although Meme brings a certain amount of entertainment and market vitality, for investors without special advantages, there is little opportunity to make money. The points trend has also gradually subsided, and the phenomenon of the rich getting richer still exists. LayerZero’s anti-Sybill efforts, while game-changing, still have limited appeal for retail investors.
New Bull Market Innovation
We need some innovations that can really reignite investment enthusiasm, innovations that attract large numbers of new users and deliver real benefits. Here are some innovations that may stand out during this cycle:
1. Re-staking: Re-staking can increase yields and increase demand for ETH, but for ordinary investors, the threshold for understanding and participation is high.
2. BTCFi vs. Ordinals and Runes: While these technologies have potential, their current technical complexity and lack of a clear value proposition make them less interesting even for technically proficient players.
Top consumer apps
On May 7, four new social apps briefly entered the top 15 protocols generated by fees.
Fantasy Top
Friend Tech
Pumpdotfun
YOLO Games
Polymarket prediction market
Polymarket is a prediction market that allows trading of event-driven binary options that will settle at $1 or $0 at expiry.
I like it because it leverages the collective wisdom of the crowd for real-time sentiment analysis. It helps to understand world events more clearly.
Vitalik has praised Polymarket on multiple occasions:
During the speculative frenzy surrounding the ETH ETF approval, Polymarket had around 2,000 daily active users. Still too few, but plenty of potential for growth.
Farcaster - Decentralized Twitter
Farcaster raises $150 million at reported $1 billion valuation!
Comparing other funding rounds in 2024, Eigenlayer raised $100 million, Optimism raised $89 million, and Berachain raised $69 million.
Farcaster is the 0 to 1 innovation of this cycle, combining the best features of social media (Twitter) and crypto. It could become a super crypto application where social interaction is combined with financial transactions such as payments and transactions.
A new way to make money
I received several thousand dollars in DEGEN airdrops as an early Farcaster user. In fact, Farcaster also has 47 "scenario coins" you've never heard of - social memes.
GameFi: Top 3 Web3 Games “Worth It” for Early Adopters
Let's face it. Most previous GameFi projects were missing the "play" element.
Here are 3 top Web3 games worth investing time as an early adopter:
1. Nyan Heroes
Nyan Heroes is a lot like Overwatch, if you add cats fighting in giant mechas. This Solana-based FPS game engages players by incorporating dynamic movement like wall climbing.
Nyan Heroes is in the top 5 wishlists on the Epic Games Store - just two seasons into the pre-release season.
The F2P game just launched the $NYAN token on May 21st, which currently has a market cap of $25 million, but is already listed on Bybit, Gate.io, HTX, MEXC and Backpack Exchange - as long as the team continues to deliver, this will be a great asset for the future. Price action is a good sign.
9 Lives Interactive, the studio behind the game, raised $3 million in a funding round in early March.
2.Metalcore
Metalcore is like a cross between Battlefield and Star Wars, all powered by a Web3 open economy with potentially earning elements.
Metalcore is one of the few Web3 games that can truly compete with mainstream games in terms of graphics and overall aesthetics, thanks to Unreal Engine 5 - and the game is still in closed beta.
This first/third person territorial war shooter combines PvP and PvE elements.
3.Shrapnel
Shrapnel is a first-person extraction shooter with earning elements, built on Unreal Engine 5.
This Avalanche-based FPS is still in its early stages of development, but a $100,000-plus Play-and-Play airdrop has generated a lot of interest among Web3 creators and is starting to attract Web2 attention.
Don't be attracted by excessive bullishness
Consumer applications need to attract mainstream users outside of the crypto community.
But Brave taught us a lesson: the success of a protocol does not necessarily mean that the token will perform well.
Even though Brave is one of the most successful consumer apps, its BAT token is still trading at 2017 prices.
Conclusion
Consumer applications and GameFi are expected to be internal catalysts for this bull market, attracting new users and bringing real revenue. However, we need more innovation and successful applications to drive the market forward. Investors should pay close attention to developments in these areas and be prepared to exit at profits in response to market volatility and uncertainty.
