Table of contents
01 Public chain structure and concept
02 The rise of Ethereum Layer2
03 NFT trading market and NFT-Fi
04 GameFi development status and trends
Outlook for the Cryptocurrency Track in 2023
01 Public chain structure and trends
As the core narrative of the industry, the public chain has undergone previous innovations mainly in three directions: consensus mechanism, programmability, and scalability.
1.1 Changes in the new public chain landscape
After a series of new public chain competitions, Ethereum’s TVL proportion will steadily increase in 2022, reaching 65%.
BSC’s share also increased slightly, reaching 9.9%.
As the capital and platform behind it decline, and the ecosystem migrates to the Move-based public chain, Solana is being abandoned by the market and capital. TVL dropped from 4% at the beginning of the year to 0.58%.
Tron TVL has increased significantly, rising from 2.41% at the beginning of the year to 7.82%.
Arbitrum and Optimism TVL accounted for 3.59% at the end of the year, an increase of 3 times from the beginning of the year.
1.2 Move is a public chain
In order to solve the expansion problem, Ethereum compromised from the sharding route to the Layer2 Rollup route, and there may be Layer3 expansion in the future. The Move public chain chose to build a new L1 from scratch to solve the expansion and contract security issues at once. They improve the performance of the public chain through a parallelized execution environment and provide higher contract security through the Move language and MoveVM.
Both Aptos and Sui blockchains are based on the Move programming language. They both focus on improving scalability. Their TPS can theoretically reach 120,000 to 160,000. However, the current Aptos browser data shows that the total transaction volume of the network is 67,128,283, the current real-time TPS is 6, the total supply of native Token APT is 1,014,385,262, the number of pledges is 836,936,550, and the number of active nodes is 102.
Compared with Aptos, which focuses on ecological promotion, Sui is more about sharing its technical documents and evangelism about Sui Move. Sui is more cautious in community airdrops. With the blessing of large amounts of financing, the development of Sui ecology in 2023 is worth looking forward to.
1.3 Cosmos Ecosystem
A multi-chain future allows for greater flexibility and customizability. Building a brand new blockchain provides more freedom in underlying architectural decisions than modifying smart contracts to meet specific needs. Cosmos represents this space. In the Cosmos2.0 white paper, ATOM utility is updated to solve the current problems of application chain security, ATOM’s lack of value capture, and high inflation rate.
Highlights of the Cosmos application chain in 2023:
dYdX, the leader in decentralized derivatives, will migrate to Cosmos, and its V4 version will reappear in the form of a high-performance application chain + order book. dYdX plans to eliminate Gas in the application chain, and validators will be compensated in the form of a portion of transaction fees.
Sei is the first parallelized Cosmos chain, focusing on building a high-speed chain dedicated to transactions. Sei Network has multiple concepts, such as parallel execution Layer1, CLOB, and anti-MEV, and is easy to gain market attention. At the same time, because it is compatible with EVM, it is easy to establish an application ecosystem.
1.4 Modular Blockchain
The core parts of the L1 blockchain are the execution layer, consensus layer, and data availability layer. Through modular execution and data availability layers, the performance of each layer is improved separately to achieve a more scalable, composable and decentralized system. In addition, through the modular architecture, the correlation between computing and verification costs is broken, and the blockchain can both expand throughput and maintain the trustless and decentralized properties of the network, thereby solving the impossible triangle problem of scalability. . The uniqueness of modularity is reflected in its pluggability and combinability.
Celestia is a modular blockchain that provides data availability and consensus layers. Plygon Avail provides Celestia-like functionality, including a data storage layer and a transaction ordering consensus layer in the consensus layer. In addition to Celestia and Plygon Avail, StarkEx and zkPorter can provide data availability. The data availability layer is the overlooked Lego building block of a modular future.
Fuel Labs is developing a parallel virtual machine positioned as a modular execution layer.
1.5 Polygon
Polygon's TVL has fallen from $5 billion at the start of 2022 to $1 billion now, and it currently ranks fourth, with only $40 million separated from fifth-placed Arbitrum. In 2022, Polygon is making extremely strong progress in all aspects.
1. Polygon has been doing things to integrate with real society, expand user scale, and cater to regulatory trends.
Polygon will become an important or first choice for mainstream brands to enter the blockchain world in 2022, including Starbucks, META, NIKE, Reddit, Disney, Trump NFT, etc. Take Reddit, for example. The company offers free NFTs as rewards to active users, and more than 4.3 million unique wallets have minted more than 5 million avatars. Starbucks’ NFT membership incentive program and META’s Instagram NFT casting will bring in more crypto users.
In the middle of the year, Polygon achieved carbon neutrality by purchasing carbon credits. In the future, it will achieve carbon reduction, provide emission reduction credits for important projects, and go online in the carbon trading market (although the EU no longer mentions emission reductions);
When Luna collapsed, it proactively provided funding and technical solutions to outstanding projects on it to encourage them to migrate to Polygon. More than 50 game projects alone were migrated from Terra to Polygon;
2. Polygon has a complete set of zero-knowledge proof (Zero Knowledge) and data availability (Data Availability) solutions Avail.
Three zero-knowledge proof schemes:
Currently, Polygon’s ace ZK solution is Polygon zkEVM, which is fully compatible with the Ethereum Virtual Machine through equivalent EVM. It has now reached the final round of testing and has achieved 2000 TPS in previous tests.
In December 2021, Polygon acquired Mir for US$400 million, the protocol was renamed Polygon Zero, and the recursive zero-knowledge proof system Plonky2 has been implemented. Plonky2 is not only faster in proof speed, but with CALLDATA re-priced in EIP-4488, the proof cost will also have a significant advantage.
Polygon Miden, an Ethereum-compatible Rollup expansion solution based on STARK. It uses a more STARK proof system to build a virtual machine, aiming to solve the problem that rollup is difficult to support arbitrary logic and transactions, and improve the ability to verify all off-chain transactions.
1.6 Privacy layer
Privacy and data sovereignty are one of the core issues in Web3.0 research. Although the privacy track is still in its early stages, as a rigid need, it will become more and more important as the blockchain industry develops. The sanctions against Tornado Cash in August attracted a lot of attention and triggered thinking and discussion in the industry. Regulatory privacy protocols are the consensus of the new privacy protection protocol project and will also become the development direction.
The privacy sector is favored by top VCs in the industry:
Aleo, a blockchain that protects privacy through zero-knowledge technology, completed $200 million in financing in February.
Aztec Network is a privacy Layer2 that has launched ZK money and completed a $100 million round of financing led by a16z in December.
Secret Network, the privacy layer 1 built on Cosmos, received $400 million in ecosystem development funding in January.
In May, Oasis Network received an additional investment of US$35 million, bringing the total ecosystem development amount to US$235 million.
In the future, with the development of new application scenarios, such as DID and social networking, and the entry of traditional institutions into the blockchain, there will be a breaking point in the privacy track.
02 The rise of Ethereum L2
The dollar value of assets crossing over to L2 fell 28.6% from $5.7 billion to $4.1 billion. However, this may be due to the drop in cryptocurrency prices rather than the withdrawal of user funds, as TVL rose from 1.6 million to 3.4 million, a 120.6% increase if denominated in ETH. This suggests that L2 will see significant liquidity inflows in 2022.
2.1 OP track
At present, Optimistic Rollup occupies the main L2 market, among which Arbitrum is the main one.
Arbitrum Arbitrum has seen significant growth in transaction volume throughout 2022, driven by increased traction from native dapps like GMX and Nitro upgrades that have significantly reduced transaction fees. The network's transaction volume grew from 5 million in the first quarter to 34.9 million in the fourth quarter, an increase of 590%. On the user side, Arbitrum experienced strong growth in active users during 2022. L2’s average monthly active users surged 559.1% from 91,800 in the first quarter to 6.05 million in the fourth quarter.
GMX is the breakout L2 application of 2022. When on-chain activity dried up and prices dropped, usage of this Arbitrum-based decentralized perpetual exchange soared, by facilitating $81.4 billion in trading volume and creating $33 million in revenue, making good use of the increased throughput of L2. GMX has become the core foundation of Arbitrum, accounting for 39.5% of the network’s TVL. Many projects such as Dopex, Vesta Finance, Rage Trade, Umami Finance, etc. are built on GMX and integrate the platform’s liquidity token GLP. This growth, along with the inclusion of a strong token group for revenue sharing, has resulted in the GMX token becoming one of the best-performing assets among all cryptocurrencies, rising 87.4% against USD and 487.2% against ETH in 2022.
Optimism Optimism has also experienced a significant increase in transaction volume, likely due to an increase in activity following the launch of OP and subsequent incentive programs. As the only Rollup solution that has achieved "EVM equivalence", Optimism has unique advantages in terms of friendliness to Ethereum ecosystem developers and ease of migration. Optimism processed 3.2 million transactions in the first quarter, and in the third quarter, Optimism processed 3.2 million transactions. It processed 30.3 million transactions in the fourth quarter, an increase of 846.7% between the two periods. The upcoming mainnet Bedrock upgrade will increase EVM equivalence to Ethereum equivalence. Deploying EIP-4844 on Ethereum will enable Optimism to provide optimal transaction fees. Optimism’s monthly active addresses soared from an average of 33.1 K in Q1 to 403.4 K in Q4, an increase of 1118.7%.
2.2 ZK track
ZK-Rollup has higher on-chain security and lower gas fees, but most ZK-Rollup currently only supports specific applications and does not support general smart contracts. zkEVM can execute smart contracts in a manner that is compatible with zero-knowledge proof calculations, so implementing zkEVM is the key to ZK-Rollup’s market dominance.
zkSync and Starkware
zkSync and Starkware implement EVM compatibility through high-level languages, and their zkEVMs are structurally quite different from Ethereum, offering maximum performance at the expense of compatibility.
zkSync 2.0, although still under construction, has launched mainnet. zkSync has raised a total of US$458 million and has not issued tokens yet.
Starkware formed two development branches:
StarkNet (universal Layer2 expansion network), StarkNet Token economic model has been released. StarkNet has a large number of native projects under construction, and NFT and GameFi may become breakthroughs. In the first quarter of 2023, StarkNet will be updated to support Cairo 1.0, with the goal of migrating to a fully Cairo 1.0-based network by the end of the first quarter, when its ZK-EVM will be officially implemented.
StarkEx (expansion engine technology) two modules provide services for blockchain applications with specific needs. Prefer To B services for project parties rather than a Layer 2 network. From a data perspective, StarkEx has been successful. There are a total of 4 projects in the StarkEx ecosystem - Immutable
Scroll and Polygon ZK EVM
Scroll and Polygon Hermez are not only compatible with the Solidity language, but also compatible with most development tools, protocol standards, and bytecodes on Ethereum. They are ZKRollup that implements zkEVM.
Scroll A fully EVM compatible zkRollup, their goal is to have a scalable network with native compatibility of the Ethereum protocol. Scroll completed a $30 million Series A round of financing in April but has not yet issued a token.
03 DeFi track analysis
The DeFi market has been hit hard in 2022, with both total market capitalization and TVL falling by about 80%, but it is undeniable that this industry has greatly shaken the TradFi market. Especially after the institutional thunderstorm after the collapse of Terra and the rapid collapse of FTX, DeFi has increased people's trust in it with its resilience under market fluctuations.
3.1 DEX
On-chain transactions have experienced explosive growth in the past two years. Taking spot as an example, DEX trading volume was only 0.12% of CEX at the beginning of 2019, and by January 2022, this proportion rose to a maximum of 18%.
Uniswap has the highest market share in trading volume, and the second tier includes Pancakeswap Curve DODO Balancer Sushiswap.
DEX leaders such as Uniswap, Curve, etc. still occupy the main share of on-chain transactions.
The aggregator is a trading platform that prioritizes user experience and represents non-robot trading volume (more than 70% of aggregator trading volume is generated by non-robot traders). Representative projects include 1inch, DODO, Matcha, Paraswap, KyberSwap, CowSwap . In 2022, DEX aggregator trading volume will account for 15%-30%, and there is still a lot of market space.
DEX in 2022 will mainly focus on solving the problems of capital efficiency, reducing slippage, impermanent losses and fees. As platform token prices fall, impermanent losses in the AMM model become a prominent issue, and if this cannot be resolved, the order book may dominate.
DEX continues to expand to other chains and NFTs in 2022.
Curve released a white paper on the crvUSD stablecoin. Curve’s stablecoin uses a lending-liquidation AMM algorithm. When the price of the collateral drops, LP gradually sells the mortgage in exchange for crvUSD. When the price rebounds, the collateral is repurchased. Further details and the release date of the Curve stablecoin are still to be determined.
3.2 Lending
In the Crypto world, lending protocols play the role of crypto banks and have an irreplaceable position as crypto credit intermediaries and liquidity engines.
Total lending volume on lending protocols fell 83% in 2022, the largest decline during the UST collapse. Aave maintained its market share, accounting for approximately 54% of total lending volume, while Compound’s share dropped from 25% to 15%.
Interest rates reflect the supply and demand of assets. In 2022, USDC lending interest rates will fall from a high of around 4% to around 2%.
Aave plans to launch GHO, an over-collateralized stablecoin. The Aave protocol will retain 100% of GHO’s interest income, which will be a huge driver of Aave’s revenue growth.
3.3 Derivatives
Derivatives trading volume fell 40% in 2022 from the same period last year, a smaller decline than DEX.
As the FTX incident continues to ferment, more and more users are beginning to re-examine the issue of fund security and turn to DeFi, laying the foundation for the explosion of GMX. dYdX is still the leading derivatives protocol, with the largest number of cumulative users and the highest revenue, but GMX is catching up quickly.
GMX allows players to become their opponents through GLP index tokens without the intervention of any market makers. Based on this gameplay, a series of derivative projects were born, such as Umami, Rage Trade, etc., trying to earn part of GLP income through a series of strategies. There is no need to hold risky positions such as BTC and ETH.
04 NFT track
NFTs are the fastest growing segment in crypto since 2021. In the context of panic in the external financial environment and a series of thunderstorms in the encryption industry, NFT cannot be immune. In 2022, the January trading volume of Opensea, the largest NFT trading market, reached a historical peak of US$4.85 billion. By December, the trading volume dropped to US$280 million, a 94% decrease from January. Regardless of the price of blue-chip NFTs, NFT trading volume, and total market value are declining, the entire NFT market has also entered a deep bear market.
Although the NFT market is sluggish, and the current average daily trading volume is only 15% of the bull market, or even lower, there are still things worth paying attention to:
More and more traditional brands are actively adopting NFT technology to connect their customers and create more engaged communities;
The NFT market is working to solve liquidity problems after cooling off in 2022, and has experimented with AMMs, mortgage lending, and royalties.
4.1 NFT trading market
Opensea reaches $30 billion in trading volume in 2022, maintaining leadership position. From the perspective of market share, after reaching an absolute dominance of 98% of the market in early 2022, its market share has been declining, and by December it had fallen to less than 90%. At the beginning of the year, LooksRare and X2Y2 tried to compete for the Opensea market with liquidity mining. The effect was obvious at first, but as incentives decreased, their market share dropped significantly. Opensea's share dropped significantly at the end of last year, due to the rapid rise of Blur.
Opensea and its challengers
LooksRare: The first trading mining incentive market
LooksRare launched a vampire attack on Opensea in January 2022, airdropping tokens to its users. Subsequently, users will be attracted to use the platform through token staking incentives and transaction mining incentives, zero royalties, and a 2% handling fee (Opensea is 2.5%, of which 25% will be paid to the project party). On the day the transaction mining incentive program was launched, the platform’s transaction volume reached US$320 million, approximately twice that of Opensea. With the halving of transaction incentives and the decline in currency prices, the platform's transaction volume has also dropped rapidly. Since the income obtained from staking tokens comes from token rewards and handling fee dividends, as the platform's transaction volume and currency prices have declined, This will lead to a downward spiral in currency prices.
X2Y2: The first pending order mining incentive market
X2Y2 was officially launched in February 2022 and also airdropped 12% of its total token supply to Opensea users. The initial incentive mechanism of X2Y2 is different from LooksRare’s transaction mining. It chooses to incentivize users who place NFT orders. This solution is more friendly to ordinary users. The NFT pending order mining model and the ultra-low handling fee (only 0.5%) attracted a large number of sellers to place orders on the platform, and the transaction volume once surpassed Opensea and topped the list. Subsequently, the platform moved incentives to gas consumption rebates, transaction rewards, etc. In the design of transaction rewards, most of the incentives were also allocated to sellers. Although X2Y2 still can't get rid of users' digging and buying, the current trading volume of X2Y2 can be ranked in the top three after Magiceden, and the NFT lending function has been launched. The application entrance for the upcoming professional trading version can also be seen on the official website .
In the face of vampire attacks on other platforms, OpenSea took countermeasures:
In April, OpenSea officially announced the acquisition of NFT transaction aggregator Gem. As the most successful NFT aggregator application, about 1/10 of Opensea’s previous trading volume came from Gem. OpenSea has consolidated its dominance in NFT liquidity through acquisitions.
In May, Opensea launched a new market protocol, Seaport, which reduced gas fees by 35% and allowed transaction diversification. Compared with the previous transaction that could only use ETH or WETH transactions, it was upgraded to support homogeneous tokens and bundling different assets for NFT exchange.
NFT Aggregator and NFT AMM Protocol
Blur, an aggregator platform for professional traders since October 2022, has captured much of Opensea’s market with a suitable airdrop strategy. Blur’s airdrop strategy is a textbook-level classic case. The team customized it for its own unique trading function based on the combination of Looksrare and X2Y2 strategies. Taking into account randomness and timely feedback. Judging from the data, Blur's growth strategy has been a great success. It is currently the second largest NFT market after OpenSea, and its market share in terms of transaction volume, number of independent users, and number of transactions has shown a rapid growth trend. Blur has quickly grown into Opensea's strongest competitor in a short period of time, forming dominance over the market in a short period of time. But as airdrops end or incentives decrease, how to maintain momentum and align with user interests in the long term may be a bigger test.
SudoSwap provides instant liquidity for NFT transactions through the AMM model, which is another highlight of the NFT trading market. After the currency was issued, the popularity subsided and the market share shrank rapidly.
4.2 NFT-Fi
NFTFi mainly solves the problem of insufficient liquidity. When the market turns bearish, the NFT investment threshold is high, and there is a lack of application scenarios, it expands the financial attributes of NFT, making the flow form of NFT more diverse and efficient, and providing more ways to play together. sex.
At present, NFTFi is absolutely mainstream in NFT lending. The main models are peer-to-peer pool and peer-to-peer. The leading projects are BendDAO and NFTfi.
Since its listing, BendDAO has captured a majority of the NFT lending market. In addition to using peer-to-peer pools, BendDAO also adopts an NFT access system. Currently, BendDAO only supports 8 top blue-chip projects.
NFTfi only needs to be submitted for review and can be put on the shelves after meeting certain conditions. It supports an extremely wide range of assets.
The main players in the NFTfi track are a small number of top blue-chip users, and the design of BendDAO's peer-to-pool model also provides a more convenient lending experience and arbitrage tools for core users in the track. The NFT lending track is still a relatively niche track. The number of independent users of several major contracts in the lending track is only 4,000+, and the highest number of active users on the day in 2022 was only 268.
NFTfi derivatives are mainly options, and the scale of the track is small. The current solution for NFT leasing is mainly Double Protocol’s ERC-4907 standard, which is relatively early. The market demand and development potential of NFTfi have been verified through BendDAO and NFTfi. However, there are currently many technical difficulties and business logic design that hinder its development.
05 GameFi Track
From 2021 to 2022, the chain game market has experienced a highlight moment. We have seen Axie Infinity’s single-day revenue exceed that of Honor of Kings, and we have seen StepN reach 300,000 daily active users in just four months, becoming the most popular encryption application in the first quarter of 2022. When it comes to the sky-high gas fees caused by users competing for the Otherside land sale.
Financing is also hot. Looking at 2022, total investment in chain games increased by 84%. Gaming projects received 16% of the total investment in the blockchain industry, more than any other type of investment. The Metaverse project followed in second place, accounting for 7.79% of total blockchain financing.
In addition to the highlights, this track shows more of the cruel facts of survival. Axie’s daily active wallets have dropped from a high of 1M to the current 9.5K. Most games do not even survive a month before entering a death spiral. In terms of the Metaverse, ROBOLX has 202M monthly active users, Minecraft has 141M monthly active users, Sandbox only has 200k monthly active users, and Decentraland only has 56k monthly active users.
Summarizing GameFi’s overall performance in 2022, we find:
The infrastructure of chain games is imperfect and faces problems such as high storage costs, high computing costs, and long response times.
Lack of effective product logic. The development process of Axie and stepn proves that the existing token economic model alone cannot avoid the Ponzi ending. Although the positive spiral effect brings explosive growth, it cannot prevent the negative spiral effect. New economic models and narratives still need to be explored.
Summarize
The game is a comprehensive track, and the development and operation of the game test the overall strength of the project party. In addition to blockchain technology innovation, chain games also involve multiple dimensions such as gameplay, economic models, and modeling. In fact, the gaming circuit has seen a huge influx of money from 2021. The total number of investments in chain games in 2021 is as high as 135, a year-on-year increase of 1130%. The popularity of the market and the comprehensive capabilities required by the product illustrate that chain games have a strong ability to break through the circle. Therefore, we believe that the GameFi project is one of the areas with the greatest future growth potential for Crypto.
Pay attention to gameplay. There is no conflict between having fun and making money, the difficulty lies in the integration. Rich gameplay should be ranked first to bring reliable guarantee to the life cycle of chain games. The survival space of pure mining games will become increasingly difficult in the face of high-quality games, but it cannot be ruled out that mining games will attract a large number of speculators when the market is down.
3A masterpieces and lightweight games are both paths you can try. Looking back at the history of the development of the traditional game industry, almost every breaking point in the industry has been accompanied by technological innovation. At present, most chain game products rarely have WEB2 game company background behind them, so there are almost no orthodox 3A masterpieces on the market. But 3A masterpieces and lightweight games are both paths that can be tried. The project experience, financial strength and rich IP of traditional game giants are also needed by chain games, and this is also a guarantee of gameplay.
The design of the economic model needs to serve the long-term and stable development of the game. Providing more rewards to players who are highly skilled and willing to contribute is likely to promote the long-term development of the game. At the same time, the inflation level of the token is adjusted according to the player growth rate, and the player's image of the game economy is maintained, so as to continue to stimulate the output of UGC. The success and benefits that a game can achieve should be based on the value that players gain from the game experience and financial returns.
Outlook for the Cryptocurrency Track in 2023
Public chain infrastructure is maturing. Public chains will continue to develop along the two directions of capacity expansion, fee reduction and privacy. According to the explosion path of new public chains in the previous cycle, the explosion of public chains is closely related to ecological prosperity, which requires higher capital and developer groups. In the future, the competition dimension of public chains will be More complex.
As the zkEVM solution matures, a universal scaling platform based on zero-knowledge proofs will have huge advantages. In the future we will see Optimistic Rollup projects looking to transition to zk-proof or hybrid solutions and leverage their existing user base to solidify their market dominance. Ultimately, the many Rollup solutions (and the increasing competition between them) will continue to improve the user experience in the Web3 world and attract more users as an application platform.
DeFi derivatives platforms and on-chain strategies are embracing explosive opportunities. Trading and lending in the DeFi track are relatively mature and are still operating in an orderly manner despite several market crashes. The scale of DeFi derivatives is also gradually growing. With the popularity of GMX, 2023 may see attempts and explorations in the composability of on-chain derivatives. In addition, on-chain options and the off-chain but fully decentralized order book that dYdX V4 will create will be worthy of attention in decentralized derivatives.
At present, the overall crypto options market has huge room for growth. Compared with the centralized options platform Deribit, the on-chain options protocol pales in terms of liquidity scale and market share. But as developers create more efficient and sustainable liquidity models, and as markets recover, on-chain derivatives and trading strategies will see rapid growth.
The NFT ecology is blooming in many aspects and its application value is emerging. Although the NFT market has shrunk significantly due to the impact of the market environment, more and more fashion and luxury brands have paid attention to the value of NFT and poured into the NFT ecosystem. NFT is based on the characteristics of non-fungibility and has natural advantages as authentication and certificate. Can this advantage find more intrinsic value in fields such as intellectual property, digital identity, ticketing, membership/subscription or RWA tokenization? . The emergence of projects such as BendDAO reflects the exploration of NFT in the DeFi field. Continuous innovation in the NFT field and Web2's entry into the market are the foundation for strong growth in the future. After all, no matter whether it is a bull market or a bear market, there will always be gaming, social networking or consumption needs.
GameFi’s circle-breaking effect and explosive power are worth looking forward to. Chain games received a large amount of financing in the last cycle, and some growth models have been proven effective. With financial support, more innovative models can be verified, making it easier to develop successful products. In addition, with the improvement of infrastructure, there is an opportunity to realize truly decentralized chain games.
Identity and contract are the pillars of Web3 application development, and Web3 has huge social potential. The success of Galaxy can provide a glimpse of the huge growth potential of precise incentives. DID can be used for credit lending, governance, and directional airdrops. There will be more and more applications built on identity in 2022:
At the beginning of 2022, Galaxy Project received huge traffic. The use of OAT reflected the value of Web3 identity in the marketing field, and then became the standard for blockchain online activities, causing a significant increase in the number of participants in blockchain online activities.
As of the end of 2022, the number of ENS domain names created has exceeded 2.75 million, and 75% of the main revenue after launch came from 2022. It is one of the projects that bucked the trend in the bear market, and is currently the most widely used identity project.
Lens Protocol is a social protocol based on universal social identity and has now accumulated dozens of ecological projects. Although the overall scale is small, it is growing rapidly. Since its launch in May 2022, it has nearly 100,000 users and has posted more than 780,000 updates.
The SBT concept proposed by Vitalik has drawn further attention to the Web3 identity track. SBT builds a native digital identity in a bottom-up approach, and data accumulation gives each account a "soul". In 2022, certificate, identity and semi-credit loan SBT projects will grow rapidly.
About SnapFingers Research
Snapfingers Research is a research platform under Snapfingers, focusing on DeFi and TradeFi research on various public chains.
