Five Breakthrough Developments for the Mass Adoption of Crypto Assets

The widespread application of new technologies often requires a long time. Taking the United States as an example, it took 78 years for cars to reach a 92% penetration rate, 48 years for household electricity to achieve full coverage, and 26 years for the internet to reach an 88% usage rate. Although the speed of technology adoption is accelerating, concepts such as Bitcoin, Ethereum, and blockchain technology have already been deeply rooted in people's minds, yet most have not truly used related services.

The reasons for this phenomenon mainly have five aspects:

1. Institutional capital entry channels are restricted.
2. Ordinary users have difficulty accessing the market.
3. Lack of investment targets that meet the needs of the public
4. The entry threshold for developers is high
5. The infrastructure cannot support large-scale applications.

However, some positive signals have emerged in the current bear market, which are expected to accelerate the large-scale adoption of Crypto Assets.

1. Bitcoin Spot ETF: Institutional Capital Entry Channel is About to Open

Although the U.S. Securities and Exchange Commission ( SEC ) has extended the review period for Bitcoin spot ETF applications, there is a generally optimistic outlook in the industry regarding its approval prospects. Some analysts believe that the approval of the Bitcoin spot ETF is only a matter of time and could be achieved within 4 to 6 months.

After the listing of the Bitcoin spot ETF, investing in Bitcoin will become more convenient. The US stock market is dominated by institutions, with mutual funds and other institutional investors accounting for 55%. Currently, the main applicants for the Bitcoin spot ETF are several mutual fund companies. Therefore, the Bitcoin spot ETF is not only likely to attract potential investors from the mainstream stock market, but more importantly, it provides convenience for large-scale institutional capital to enter.

According to statistical analysis, currently, Bitcoin-related products (, including trusts and futures ETFs, have a managed asset scale of 28.8 billion USD. The industry expects that after the listing of the Bitcoin spot ETF, it may bring an additional demand of 30 billion USD.

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2. PayPal USD Stablecoin: Ordinary User Entry Channel Now Open

A well-known global payment company recently launched a US dollar stablecoin for transfers and payments on Ethereum. The company operates in 202 countries and regions, supports 24 currencies, and has over 400 million monthly active users worldwide. This is the first large fintech company to embrace digital asset payment transfers.

Eligible users will be able to transfer stablecoins between the company’s platform and compatible external wallets, which can be used for peer-to-peer payments, merchant payments, and exchanges with other Crypto Assets. The company's vision is to become a bridge between fiat currency and Web3, promoting the mainstream adoption of stablecoin payment systems. With a large user base, it is expected to bring tens of millions of new users to the Crypto Assets industry.

3. The RWA Boom: Traditional Institutions' Entry Point into the Crypto Assets Ecosystem

In the past six months, real-world assets )RWA( have become a hot topic in the market. Supporters believe that RWA will introduce real-world assets and yields, significantly increasing the scale of Crypto Assets. Opponents argue that most RWA projects still rely on centralized trust, which goes against the spirit of the de-trustification of Crypto Assets.

Despite the controversy, RWA may become the preferred direction for traditional large institutions participating in building the Crypto Assets ecosystem. For example, a dollar stablecoin launched by a payment giant is actually a type of RWA that comes with the yield from U.S. Treasury bonds, but currently, the yield is not distributed to holders. In the future, "interest-bearing stablecoins" may become mainstream projects.

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4. Blockchain Supporting Multiple Programming Languages: Attracting Web2 Developers

Currently, there are two directions in the exploration of Web3 programming languages within the industry: one is to develop new languages targeted at specific application scenarios, such as Cairo and Move; the other is blockchain platforms that support multiple programming languages, aiming to attract more Web2 developers.

The current number of Web3 developers is about several hundred thousand, while the number of Web2 developers exceeds ten million. Blockchain platforms supporting multiple programming languages are expected to attract a large number of Web2 developers, thereby creating a more prosperous ecosystem.

5. The infrastructure is becoming increasingly完善, and large-scale applications are expected.

The Ethereum ecosystem has developed a thriving Layer 2 scaling solution, such as Optimism, Arbitrum, and StarkNet, which significantly improve performance compared to the Ethereum main chain. In addition, the modular blockchain field is also experiencing rapid development, with projects like Celestia and Polygon Avail expected to support large-scale blockchain applications.

Overall, compared to the previous cycles, this round of Crypto Assets infrastructure development has made significant progress, creating conditions for the birth of large-scale blockchain applications.

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