According to PANews, recent trends in the primary investment market reveal a preference for 'hybrid innovation,' where Web3 technology infrastructure supports the proven business logic of Web2 models. Examples include Lightyear adapting traditional stock ETF investment logic to Web3, Hilbert Group focusing on digital asset quantitative strategies, OkaFund specializing in crypto asset allocation, and Elysium Lab developing a Bitcoin daily payment wallet.
These projects fall under the category of fusion innovation, aligning with the operational logic behind some Web3 projects 'going public' and U.S. stock reserves venturing into crypto assets.
Three core reasons drive this trend:
1) Pure native blockchain innovation projects face limitations. They struggle to expand user bases and rely heavily on tokenomics incentives. In a market with limited liquidity, this approach becomes challenging.
2) The regulatory environment is becoming more 'crypto-friendly.' The establishment of BTC and ETH spot ETFs, the GENIUS and CLARITY Acts, and Wall Street financial institutions entering the market have transformed crypto assets from niche speculative targets into mainstream financial derivatives. In this context, embracing traditional financial models or seeking usable Web3 technology infrastructure becomes appealing.
3) User investment needs are maturing. Initially, crypto users focused on decentralization and consensus strength when rating projects. However, as mainstream Web2 users enter the space, they prioritize usability, safety, and profitability. Products offering simpler experiences and direct results are gaining traction.
Looking ahead, the investment focus for the next 3-5 years may revolve around the 'crypto transformation of traditional businesses.'
1) Segments like investment, payments, asset management, insurance, credit, supply chain finance, and cross-border trade settlement will see numerous projects combining traditional business logic with crypto technology. Crypto infrastructure will remain in the backend, addressing cost, efficiency, and transparency, while the user experience will mirror traditional products.
2) The trend towards technical standardization and 'invisible' infrastructure will be significant. New infrastructure supporting Web3 and Web2 fusion will not be limited to the Crypto Native domain but will focus on providing reliable, efficient, low-cost crypto technology support. Concepts like 'modularization and chain abstraction' will no longer be hot topics but will underpin standout products.
3) Traditional financial institutions will actively enter the market. Instead of merely buying cryptocurrencies or investing in Web3 projects, they will use their licenses, resources, and user bases to localize crypto business. For instance, banks may introduce stablecoin payments, insurance companies could offer on-chain policies, and brokerages might provide crypto asset custody. This involvement will bring larger funds and user bases, intensifying product competition and driving industry maturity.
JinseFinance
Catherine
Cointelegraph
Bitcoinist