There’s a strange sense of “whiplash” writing this now, just months after a period when crypto felt quiet. Markets were uncertain, capital was sidelined, trends and narratives were bleak or did not seem to be impactful in the long run.
That phase of the cycle hasn’t been kind to all. We saw one of the largest hacks in recent memory, and the broader space went through a period of memecoin euphoria that ultimately resulted in one of the biggest liquidity extractions from the space. Ethereum also saw an existential crisis where its mindshare and position as a major was briefly questioned.
Since then, the tide has shifted with the re-election of Trump sparking early signals of a regulatory reset, with crypto becoming a geopolitical and economic talking point throughout the world. With that Bitcoin has surged to new all-time highs on the back of institutional inflows, ETF momentum, and renewed macro and consumer confidence. But beneath the surface euphoria, the cracks in the lack of projects with actual fundamentals, sustainable revenue generation or product-market fit have only become more apparent.
They say that tech moves quickly, but the meta in this crypto space shifts even more rapidly because of how nascent the space is. Talking to the builders in ARC a couple of months ago, there was a strong consensus that there is this air of stagnancy in the development of new and compelling concepts that are able to find some ideal market fit within CT outside of core verticals like DeFi, stablecoins, protocols and infrastructure building etc. Instead, what we’re actually seeing are a slew of projects that try to quickly go to market with a fresh narrative with misaligned incentives that ultimately fail to maintain momentum and gradually lose mindshare and adoption altogether.
There is, however, a silver lining, that crypto is maturing. It seems like this period of crypto may be the first time the space will experience an era of dApp-based building at scale vs what we have been more familiar with in the past where protocols and infra development have traditionally been prioritised. This to me, is great news as it means that we’re finally getting to a stage of development where the skillsets of people like product designers and creatives become a priority. That can only be a plus for the onboarding of new users who have traditionally been turned off by the inaccessible, high friction experience native to crypto.
With that in mind, ARC remains highly optimistic in the development and progression of the space with the intent of building scalable Web3 products as a core revenue stream for us. These products will prioritise bringing value back to our members (as per our intent to optimise for community-led growth) but also hopefully, with time, to future users outside of our immediate community.
For ARC as a product on its own however, as a founder in Web3, I know what everyone is waiting for, which is essentially the launch of a token. As someone who has been through 3 cycles now, I am well aware that “metas” come and go quickly. While there is a very strong temptation to jump onto the “next shiny object” which is trending, as a long-term centric founder, I have never felt a strong motivation to launch a token based on short-term centric thinking like “Elroy, let’s launch now, the token will make money” or “April will be a good month to TGE”, or that “the narrative is new, we need to be the first movers”.