emerging
Onchain Ecosystem Growth
The shift from "web3" to "onchain" reflects a growing focus on fundamental value and the development of a robust onchain ecosystem.
Timeframe
near-term
Subcategories
Detailed Analysis
The transition from the narrative-driven "web3" era to the more pragmatic "onchain" focus signifies a shift towards fundamental value and tangible use cases. This is driven by increased institutional participation, which demands a stronger emphasis on underlying technology and real-world applications. "From a markets perspective though, the uptrend in 2024 does belie some stark differences with previous bull cycles. Some of them are cosmetic: the term “web3” was replaced with the more fitting “onchain.”"
Context Signals
Decentralized exchanges now represent around 14% of centralized exchange trading volumes, up from 8% in January 2023.
Telegram trading bots have emerged as a profitable sector, eclipsing major DeFi protocols in net protocol revenue.
Prediction markets demonstrated greater accuracy than traditional polling data during the 2024 US election cycle.
Edge
Onchain ecosystems will increasingly integrate with traditional financial systems, creating hybrid models that leverage the strengths of both.
The focus on fundamental value will drive the development of more sustainable and robust DeFi protocols.
The emergence of new onchain applications will unlock novel use cases for blockchain technology and attract a wider range of users.
