Asia will drive the next bull market | CoinDesk JAPAN

We are at the beginning of the next bull market. If history is any guide, a cycle like this can be triggered by multiple events, including the Bitcoin halving, changes in macroeconomic conditions surrounding the US election and Federal Reserve interest rates, and the emergence of Web3 and DeFi innovations. Driven by factors.

Stories that color the market cycle

For example, yield farming was a key innovation that fueled the last cycle. The next cycle will feature zero-knowledge proofs, new DeFi techniques like restaking, and innovative blockchain technologies that offer modularity and composability and are suitable for moving assets and data between chains. There is a possibility that

Each cycle comes with a unique cultural story. Art NFTs dominated the last cycle. The sale of Beeple at Christie’s for 69 million dollars (approximately 9.9 billion yen, equivalent to 143 yen to the dollar) led to the PFP (profile picture) boom and the creation of stores such as Sotheby’s and Pace Gallery. This was further fueled by the growth of the use case for fine art, which has expanded to include

The current cycle is predicted to be shaped by the SocialFi story, just as platforms like Friend.Tech are already setting the stage.

Institutional investors and regulatory narratives also play an important role. Last cycle, MicroStrategy’s Michael Saylor introduced Bitcoin to corporate balance sheets, but this cycle sees traditional financial institutions and fintech giants embrace crypto assets ( They have applied for an ETF (virtual currency) and launched a stablecoin.

On the regulatory front, the United States is still struggling with crypto regulation, resulting in many projects selling new crypto products outside the country. For this reason, I believe the next bull market will be in Asia and will have distinct geographic characteristics.

Asia is full of excitement

The enthusiasm for crypto assets in Asia cannot be overlooked. The lackluster conferences held in the US in the fall contrast with the lively atmosphere of Korea Blockchain Week and Token2049 in Singapore.

Cities like Bangkok, Ho Chi Minh City, Jakarta, Manila, and Kuala Lumpur, as well as several large cities in India, are home to strong developer communities and a thriving Web3 industry, supported by government support and enterprise adoption. There is.

The success of Token2049 in Singapore, APAC investors pouring money into crypto projects, and a growing appetite for NFTs all suggest the region is poised to lead the next bull market. .

While Asian governments vie for the top spot as crypto hubs, the United States appears to be discouraging crypto entrepreneurs. As a result, marketing campaigns are excluding America, companies are responding to growing demand in Asia, Europe and the Middle East, and entrepreneurs are moving to countries with more friendly regulatory environments.

Having opened offices in APAC for Web3 marketing agency/product studio Serotonin, I have seen first-hand that these markets offer unique benefits to growing crypto projects.

Foundation for popularization

From a tech-savvy, mobile-first user base to high-quality developers eager to contribute to decentralized projects, this region is full of potential.

They are passionate about Web3 culture and are poised to introduce “SocialFi,” which is already popular in the region thanks to new technologies, especially WeChat. applications that allow users to monetize their social interactions and take control of their data).

Telegram, widely used for messaging in Asia’s Web3 community, is already testing an in-app self-custodial crypto wallet for users outside the US.

This background, combined with regulatory friendly locations like Hong Kong and Singapore, could lead to an explosive crypto boom.

For example, Hong Kong’s First Digital received regulatory approval to launch its stablecoin FDUSD, while fintech giants like PayPal received subpoenas for doing the same in the United States. For us Americans, this is unimaginable.

“Asia’s Speed,” as we affectionately call it, is a testament to the region’s rapid adoption and contribution to Web3 technologies. I believe this dynamism will set the tone for future bull markets and provide a geographic story to the crypto cycle.

Asia will lead until America re-emerges

However, I predict that this situation will change in about a year and a half after the next US presidential election. We believe that regulations regarding crypto assets will be clarified in the United States, and a new cycle of adoption by companies and marketing to consumers will begin.

This period will also see America re-emerge as a key driver of Web3 innovation and adoption, with leadership from Asia and elsewhere contributing to the flourishing of the global Web3 ecosystem.

In the meantime, our strategy is to grow our business with a focus on Asia. It encourages Western projects to enter the Asian market, supports globalization through partnerships with projects originating in Asia, and connects with English-speaking populations in Europe and the Middle East.

Overall, the crypto world is entering a more diverse and dynamic era driven by various global powers, with Asia likely to lead the next bullish cycle.

｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜Image: Shutterstock
｜Original text: How Asia Drives the Next Crypto Bull Market