Nansen CEO Predicts Six Key Trends in Crypto

In a recent Twitter thread, Alex Svanevik, the CEO of Nansen.ai, delved into six key trends he believes will significantly impact the cryptocurrency landscape in the coming cycle. The detailed thread, posted on October 6, 2023, underscored the blending of fintech with crypto, the potential of decentralized finance (DeFi) in gambling, the rise of Real World Assets (RWAs) like T-bills, the promise and challenges of Web3 gaming, the emergence of SocialFi, and the innovative intersection of Physical NFTs with mainstream retail.

Fintech and Crypto Convergence

Svanevik noted the growing integration of fintech frontends with crypto backends, referencing PayPal's venture into stablecoins and Revolut's support for ETH staking. He also mentioned crypto startups like BasedApp HQ that are increasingly resembling fintech products, forecasting a long-term shift where cryptocurrency technology overhauls traditional fintech backends.

DeFi Revolutionizing Gambling

The DeFi model, Svanevik suggests, is poised to reshape the gambling and betting industry. By replacing the house's cut with yields on capital, DeFi offers a more equitable framework. Innovations like Layer 2 solutions (L2s) and account abstraction are making decentralized betting platforms more user-friendly. Svanevik highlighted platforms like LooksRare, Rollbit, and PoolTogether as examples of this trend.

Real World Assets and Stablecoins

The narrative of stablecoins is extending to real-world assets (RWAs), specifically T-bills, as Svanevik pointed out. With platforms like Super State Funds, Mountain USD, and Open Eden Labs leading the way, tokenized T-bills might significantly reduce stablecoin supply. Svanevik expects giants like Circle and Tether to explore this avenue.

The Advent of Web3 Gaming

Web3 gaming is on the verge of a breakthrough, with several games launching after years of development. Although many will falter, a select few could achieve monumental success. Svanevik is backing projects like PlaySIPHER, MixMobOrigin, and Axie Infinity.

SocialFi's Emergence

Svanevik acknowledged the real usage of on-chain social platforms like Friendtech, citing Layer 2 solutions and account abstraction as critical enablers. Despite expected iterations and forks, he believes SocialFi is here to stay.

Physical NFTs Bridging to Retail

Physical NFTs are carving a path to mainstream retail, with Luca Netz leading the way, according to Svanevik. Platforms like IYK App are facilitating other companies to experiment and succeed in this domain.

In the thread, Svanevik also encouraged feedback on any missed trends, which led to discussions on leveraging in DeFi and the role of blockchain in fantasy sports, suggesting the cryptocurrency landscape's dynamic and community-driven nature.