Author: arndxt, crypto researcher; Translation: Jinse Finance Xiaozou
Why do I no longer suggest friends 'learn crypto knowledge' first?
Last month, I attempted once again to guide an outsider friend into the crypto world. Just ten minutes in, when the process reached 'selecting a wallet' and 'now you need to pay Gas fees with another token,' her expression began to turn bewildered. This made me realize: we are facing not a knowledge gap, but a design gap.
A harsh reality has become very clear: Speculation brought in the first wave of users, but it cannot bring the next billion users. True mainstream adoption begins when crypto products become 'invisible' -- that is, when people benefit from them without seeming to realize they are using crypto technology. From the rise of stablecoins to the popularization of institutional staking, to AI's increasingly important role in shaping the digital economy, the foundations for mass adoption are being laid. But to realize this future, we must stop expecting users to learn crypto knowledge and instead start building products that make them unaware they are using crypto technology.
Here are the eight narrative directions and related projects I believe are worth noting:
1. The winning strategy for the next generation of wallets: Do one thing to perfection
We are witnessing a significant structural shift: Users are forming usage habits around two complementary wallets: one feels like a fintech app's 'daily wallet,' while the other resembles a bank app's 'vault wallet.'
Wallet experiences are diversifying. Developers trying to cram all functionalities into a single interface will ultimately lose to combination solutions focused on (a) frictionless onboarding experiences and (b) high-security storage solutions.
Currently, over half of users are using 2-5 wallets simultaneously, with nearly 48% stating this is because each network still lives in its own walled garden.
The phenomenon of head concentration is evident:
Among users with over 2 years of experience, 54% predominantly use Binance, Coinbase, MetaMask, or Trust wallets.
Among the novice group, no single wallet has yet reached a 20% market share.
However, self-custody still intimidates most users. Interestingly, Binance's own self-custody solution, Binance Web3 wallet, has only attracted 22% of users, suggesting that even with a simpler self-custody pathway within a familiar brand ecosystem, users remain hesitant.
Using multiple wallets is a forced choice.
After months of observation, I realize one thing: people do not want to manage multiple wallets simultaneously. They do this out of necessity.
Clearly, the 'seamless multi-chain future' we have been discussing has not truly arrived. 48% of users maintain multiple wallets primarily to access different blockchain ecosystems.
44% of users now intentionally split their wallet usage for security reasons, up from 33% last year.
This tells me two things: the industry has failed to achieve true interoperability, shifting operational complexity onto end users; meanwhile, these users are becoming smarter -- they no longer blindly trust a single wallet to handle all scenarios.
Phantom -- A popular wallet on Solana and Ethereum.
2. Misalignment of behavior and beliefs
We remain in this field for speculation.
Indeed, 54% of users have actually used cryptocurrencies for payments or peer-to-peer transfers in the past quarter. However, when asked about their favorite activity, only 12% chose payments.
Conversely, trading (spot, meme coins, DeFi) remains the primary activity for various users each week.
Until developers eliminate these resistances, speculation will continue to seize the attention that practical functionality deserves.
This gap stems from three major resistances: Cost resistance. 39% of users believe high L1 gas fees remain the biggest barrier to adoption, which is the most prominent issue. Experience resistance. Only 11% of users believe the current onboarding process is sufficiently mainstream. Network resistance. Payment flows towards existing platforms for merchants and friends; fragmented wallets and chain ecosystems disrupt this closed loop.
Huma Finance -- Pioneering payment finance solutions, cross-border payment financing without pre-deposit funds, with real payment flow yielding (10.5% annual yield). Tectum -- Instant, zero-fee cryptocurrency payments. Alchemy PayNOWPayments
3. Public chains will become an invisible infrastructure layer -- users won't even need to perceive their existence
The multi-chain ecosystem is essentially the result of division of labor and cooperation:
The winning user experience model is 'chain abstraction' -- wallet sessions can seamlessly route orders, balances, and identity information to backends providing the best delay-cost-security combination, without requiring users to make choices throughout.
Ethereum remains the institutional-grade settlement layer, but Solana is rapidly establishing itself as the preferred public chain for high-frequency, high-participation retail activities. However, from a growth momentum perspective, Ethereum is facing unprecedented competitive pressure. Solana achieved a 3000% annual fee growth and a 127% TVL growth, the highest among all L1s. This surge is primarily driven by the meme coin craze (especially in Q4 2024) and reflects Solana's structural advantages in speed and transaction costs.
User awareness has formed: 43% indicate Ethereum is the most commonly used public chain; 39% choose Solana; only 10% primarily use L2 -- this proves interoperability remains a theoretical concept.
Chainlink -- Leading cross-chain interoperability protocol using CCIP (token LINK)
LayerZero -- A full-chain interoperability protocol using the OFT standard (token ZRO) Axelar -- Cross-chain communication network (token AXL)
Wormhole -- Cross-chain messaging protocol (token W) SocketDotTech -- Cross-chain interoperability protocol (upcoming token) eOracle -- An Ethereum-secured oracle platform providing permissionless specialized data services for smart contracts.
4. False sense of security enhancing user confidence
Users claim to feel safer on-chain, but their wallet data tells a different story.
How to explain this contradiction? Users conflate personal protective measures (hardware wallets, multi-signature) with systemic risks. At the same time, attackers have industrialized 'phishing as a service,' shortening the average lifespan of malicious contracts to a quarter of what it used to be.
The focus of product optimization should be: Transitioning the down-sinking anti-phishing user experience (clear signing interface, real-time transaction simulation, MPC transaction firewall) from advanced additional features to default configurations -- especially in mainstream 'daily use' wallets.
5. NFT as digital cultural infrastructure
The NFT market is undergoing a necessary adjustment, shifting from speculative PFP projects to genuine digital goods and utility-driven experiences. This is the first time the NFT market has shown signs of sustainable development.
Platforms like Rodeo.Club and the surge of low-cost collectibles on Base signify a shift towards affordable, high-frequency interaction models -- similar to in-game purchases.
NFTs are becoming the interactive infrastructure of the digital economy.
NFTs will become the default interaction layer for consumer-grade applications: loyalty points, badges, membership privileges -- all of these will increasingly be presented on-chain in NFT form. Ownership will enable cross-platform transfer and trading, unlocking secondary market value for users and opening new revenue channels for brands. Imagine a loyalty program like Starbucks operating on-chain: points earned in one application could unlock benefits across the entire partner service network.
The rise of cultural capital as currency: NFTs are rapidly becoming the mechanism for users to showcase their identities and cultural affiliations in the digital space. As social platforms integrate on-chain assets, NFT ownership will evolve into a primary form of digital self-expression, much like wearing branded clothing in the real world.
Judging criteria will shift from floor prices to user retention: The era of judging NFTs by speculative value is ending. The new metrics are user retention and engagement: How frequently do users interact with the assets? Are these assets tied to ongoing experiences, content, or rewards? Builders should design NFT ecosystems that encourage repeat participation through unlockable content, dynamically evolving token attributes, and real-world benefits.
AI+NFT will usher in a new wave of personalized dynamic assets: AI-generated NFTs linked to user behavior, emotions, or community events are on the horizon. These dynamic assets will evolve with user participation, creating deeply personalized experiences and emotional connections that static assets cannot achieve.
Treasure DAO -- NFT infrastructure powered by MAGIC token
Mocaverse NFT -- Infrastructure connecting Animoca brand ecosystem (MOCA token) Rodeo Club -- NFT interactive platform NFP -- AI-generated NFT platform (NFP token)
Finalbosu -- A popular series on Abstract chain
Good Vibes Club -- An emerging series with active community engagement
Onchain Heroes -- A renowned series on Abstract chain
Hypio -- A rapidly growing series
steady teddys -- A popular series on Berachain
Pudgy Penguins -- A leading NFT brand with mainstream adoption (Walmart sells physical toys, PENGU token)
Bored Ape Yacht Club -- An iconic series (powerful community and APE token)
CryptoPunks -- A historically significant original NFT series
Azuki -- A Japanese anime-themed series (ANIME token, strong brand influence)
doodles -- Colorful series (recently launched DOOD token on Solana)
Milady Maker -- A cultural phenomenon project (CULT token, strong community)
6. Bitcoin as a macro asset class
Bitcoin has evolved from a speculative asset to a macro-level financial tool.
A parallel transformation is unfolding: Driven by the maturation of Layer 2 ecosystems (especially Lightning Network and emerging protocols like Ark and Fedimint), Bitcoin is quietly becoming the transaction layer for global settlements.
Bitcoin, as an invisible settlement layer, is powering the next generation of cross-border payments, institutional finance, and sovereign digital reserves.
Bitcoin's macro correlation: From hedge tool to strategic reserve asset: Countries facing de-dollarization challenges are quietly incorporating Bitcoin into their sovereign reserve diversification strategies. Institutions and even sovereign actors regard it as a necessary insurance policy against systemic financial risks.
Layer 2 protocols are unlocking the payment utility of Bitcoin: The Lightning Network has evolved from a technical experiment to a scalable real payment layer, enabling near-instantaneous, low-cost cross-border transactions. New solutions like Fedimint and Ark are addressing Bitcoin's user experience and privacy limitations, making it a truly viable currency for emerging markets. Builders should focus on developing payment solutions and cross-border financial products based on these Layer 2s, particularly targeting remittance corridors and areas plagued by currency depreciation.
Bitcoin as collateral -- The rise of institutional lending and funding strategies: Mainstream institutions are beginning to view Bitcoin not just as a passive investment but as productive collateral in structured financial products. A large influx of Bitcoin-backed credit instruments, fund management solutions, and derivatives seamlessly connecting with traditional financial markets is expected.
A global settlement network is forming: As geopolitical frictions intensify, the demand for neutral, censorship-resistant settlement channels will grow. Bitcoin has a unique advantage as a global clearing layer for trade settlements, complementing rather than competing with fiat currencies. Abstracting the complexity of Bitcoin transactions for end users and developing infrastructure that utilizes Bitcoin for seamless settlements will drive Bitcoin adoption beyond the crypto-native circles.
Solv Protocol -- The first on-chain Bitcoin financialization and banking solution (SOLV token)
Stacks -- Leading Bitcoin smart contract Layer 2 (STX token) Alpen Labs -- Bitcoin Layer 2 solution Babylon Labs -- Bitcoin cross-chain bridging solution (BABY token)
Zeus Network -- Cross-chain communication platform (ZEUS token) corn -- Ethereum Layer 2 Bitcoin solution (CORN token)
Runes ChainaI -- Bitcoin Layer 2 solution (RUNIX token)
7. Institutional staking: A new paradigm for strategic capital allocation
As Bitcoin establishes its position as a core component of macro asset classes and modern funding strategies, institutional investors naturally begin to ponder the next question: How to make these assets yield?
While retail investors chase speculative gains through meme coins and high-risk trading, institutional funds are steadily flowing into structured, yield-generating crypto assets -- particularly through the staking ecosystems of Ethereum and Solana.
Bitcoin may still be the preferred macro hedge, but staking is rapidly becoming the bridge for institutional funds to enter productive on-chain capital.
Institutional new strategies:
Bitcoin is shifting from a store of value to productive capital: With the advent of Bitcoin-native staking mechanisms (such as through protocols like Babylon and upcoming BTC Layer 2 solutions), Bitcoin is beginning to enter the realm of yield generation strategies without compromising its core monetary attributes.
The real opportunity lies in infrastructure rather than validators: The next billion-dollar influx of institutional funds will come from platforms providing institutional-grade custodial, compliance reporting, and risk management staking products.
Uncertain macroeconomic environment diversification: As interest rates peak and the attractiveness of traditional fixed income products declines, staking returns become a new category of risk-adjusted returns. This is particularly appealing to institutional funds seeking diversified allocations, wanting to move away from cash holdings and low-yield bonds while avoiding the volatility risk of speculative crypto assets.
Core DAO -- Self-custodied BTC staking solution (CORE token)
BounceBit -- Institutional staking platform (BB token) TruFin Protocol -- Institutional-grade liquid staking Archax -- Regulated institutional exchange (supports HBAR staking)
8. Regulation, stablecoins, and AI: The next growth entry point
Compliance will open up stablecoin channels → Cheap, instant global payments create real everyday touchpoints → Verifiable on-chain traceability becomes the trust layer for AI-generated value. Payments are just the beachhead of this transformation.
Regulatory optimism: 86% believe clearer rules will accelerate adoption, while only 14% think it will hinder innovation.
Stablecoin growth momentum: Holding rates have doubled year-on-year to 37%, becoming the default payment channel in over 30 Stripe markets.
AI synergy: 64% believe AI will at least accelerate the development of the crypto industry, while another 29% expect a bidirectional flywheel effect to form.
WLFI -- A stablecoin pegged to 1 USD (WLFI token)
Ripple -- RLUSD stablecoin (using XRP as Gas token) Ethena Labs -- USDe stablecoin (upcoming token aimed at traditional finance) OpenEden -- Yield-generating USDO stablecoin Syrup.fi – SyrupUSDC -- Institutional-level yield program (stablecoin 10% annual yield) cap -- A stablecoin protocol providing trusted financial guarantees
Conclusion: UX 2.0 era -- Evolve or be eliminated
Users are no longer dazzled by the halo of 'web3.' They expect: Web2-level usability, Web3-level ownership control, and AI-level smart experiences -- all three are indispensable.
Teams that can achieve 'chain selection invisibility,' eliminate fee pain points, and integrate predictive security mechanisms will transform the crypto space from a speculative playground into the connective tissue of the on-chain internet. The next billion users may not even realize they are using web3 products -- this 'invisible experience' will be the ultimate victory in user experience.
