Exploring Consumer Cryptography: Emerging Trend or Old Wine in New Bottles?

Author: Ruthy

Compiled by: Shechao TechFlow

The term “consumer crypto” has been mentioned a lot recently in discussions driven by some developers and thought leaders and seems to have become a new trend or emerging topic.

What does it actually mean?

Is this truly a new field or is it a repackaged concept that is attracting attention in different market conditions?

To understand the concept of consumer cryptocurrency, we need to delve into its definition, current relevance, potential growth drivers, and the obstacles it faces.

What does consumer crypto actually refer to?

Cryptocurrencies are gradually being integrated into everyday consumer products, services and behaviors. This means that people can use cryptocurrencies in real life and not just limited to speculative trading or decentralized finance protocols.

Consumer crypto focuses on the end-user experience and integrates cryptocurrencies into everyday products such as gaming, social platforms, e-commerce and media.

Why is this topic gaining attention now?

• Is it because consumer products with huge market potential like @Polymarket are on the rise and showing signs of widespread adoption?

• Is it because blockchain intellectual property projects like @pudgypenguins are gaining global attention?

• Is it because people, especially the younger generation, are increasingly disillusioned with traditional financial systems?

• Is it because blockchain technology and applications have become more mature and user experience has become the focus?

It could be a combination of these factors.

Looking ahead to 2025, additional Web3 products may enter the global market. Venture capital firms are also moving in this direction and investing in user experience solutions, such as @initiaFDN’s $14 million funding and @infinex_app’s $65 million funding.

As some companies have recently announced the integration of cryptocurrencies into their products, it is clear that we are moving towards a world where cryptocurrencies become mainstream products and usher in a new breakthrough.

I personally even ordered a card from @biptapofficial to test this direct crypto-to-fiat payment model. This will make life more comfortable.

What obstacles do we face?

Incentives and target group

Many teams claim to be at the forefront of consumer cryptocurrency and developing applications for the global market. However, they often focus too much on attracting first-time users to Web3 and develop incentive mechanisms around speculation and profit. They consider this approach as part of product-market fit and user onboarding.

But what if we remove these incentives?

Fragmentation and Friction

Different blockchains and platforms often operate independently of each other, which creates friction. For users, fragmentation means they are faced with multiple interfaces, wallets and token standards, leading to increasing complexity. Since assets are spread across different platforms, liquidity is fragmented and efficiency is reduced.

This fragmentation has led to the development of dedicated chains such as @AbstractChain and @Roninnetworkthat build vertically integrated ecosystems. Meanwhile, @infinexapp has created a horizontally integrated platform similar to a decentralized exchange by integrating cross-chain user experiences and positioning itself as a user experience layer.

In conversations with team members, I found that Abstract’s vision bears a striking similarity to the achievements of applications like WeChat or KakaoTalk.

Our (abstract) team is committed to creating the preferred on-chain destination that will be the most interesting place on the internet – what I call the “digital crypto playground” or “Disneyland of the Internet”. The image below shows our determination to provide an uninterrupted, outstanding user experience. Over time, we hope to attract users by introducing new products and ultimately develop into a universal chain.

WeChat started as a messaging app in China and has now grown into a massive ecosystem spanning social media, payments, shopping, news and mini-programs.

Abstract can also be viewed as a similar ecosystem application that starts from an initial use case and expands horizontally after establishing a strong vertical integration base.

Maybe this is the development path for dedicated chains like @abstractchain and @Lucanetz?

Adapting to the product market remains a major challenge. Despite rapid innovation in crypto technology, many products still fail to solve real consumer problems or provide real entertainment value.

So far we’ve seen some Web3 products like Polymarket and Axie Infinity hit the mainstream, but that’s just an exception. To make crypto products widely available to consumers, we need more products that can solve real problems or provide meaningful entertainment value. This means creating engaging games that don’t rely solely on play-to-earn mechanics, or creating financial products that truly improve lives rather than just attract speculators.

What do you think adoption means?

There are different stakeholders involved in consumer crypto adoption, each with different incentives, especially between builders and merchants. Although both can benefit, their motivations and approaches are very different.

Developers are responsible for developing the infrastructure, applications, and ecosystems that drive cryptocurrency adoption. Their goals are not limited to short-term price fluctuations, but are focused on providing value to users, generating revenue through transactions, and attracting investments by adapting the product to the market.

On the other hand, retailers are looking at the launch from a different perspective. For them, the introduction means greater liquidity and more opportunities for profitable exits.

What do you think? Feel free to share your thoughts with us.