Top Crypto Trends to Watch

While our team settles in from our travels at EthDenver, we can’t help but share the industry-wide energy and excitement. The general feeling? We are back. As the market reaches record highs, a few trends and key takeaways from EthDenver caught our attention. From better user onboarding to the growing excitement surrounding Layer 2s - crypto is learning, adapting, and eager for what’s next. 

At Valora, our belief has always been that mobile-friendly tech will be critical for global crypto adoption, and, ultimately, no matter what new corner of Web3 you are in, the end-user experience should always be the priority. 

Now, more than ever, crypto is reevaluating learnings from past years and applying these insights to building better solutions and stronger communities. 

I’ve summarized five industry trends and takeaways from this year’s EthDenver Conference. As we continue to build, I hope you’ll share your feedback and thoughts on what you’d like to see next. 

Crypto may “be back,” but our commitment to users has always been a constant. 

Jackie Bona, CEO & Cofounder @ Valora

TL:DR;

• L2s for better user experience - DeFi protocols are building L2 app chains to facilitate a better user experience, giving way to higher speeds, lower fees, and more real-world applications.

• New user-friendly solutions: account abstraction, smart wallets, & MPC - One of the greatest threats to crypto adoption remains the end-user experience. Projects are increasingly focused on the easiest ways to onboard new members.

• Web3 social - platforms provide a compelling solution to the pain points of privately owned Web2 social media channels. Many new projects, like Farcaster, offer better privacy and ownership.

• Community engagement: points are the new airdrops - Builders are finding new ways to engage their community with points and new incentives

• Industry spirits are high, and the general sentiment is: “we’re back” - With prices up and spirits higher, the industry is focused (more than ever) on onboarding the next billion users. 

1. L2s for better user experience

DeFi protocols are starting to build L2 (Layer 2) app chains to provide better user experiences, giving way to higher speeds, lower fees, and more real-world applications.

This trend aligns with Celo’s upcoming transition from an L1 to an L2, and we’re looking forward to seeing more dapps and protocols focused on lower fees and broader impact.

2. New user-friendly solutions: account abstraction, smart wallets, & MPC

One of the greatest threats to crypto adoption remains the end-user experience. Projects are increasingly focused on the easiest ways to onboard through MPC (Multi-Party Computation), account abstraction, and smart wallets. Account abstraction continues to be the conversation around the future of wallets; however, it is still not broadly adopted. High gas fees and simply the inertia of seed phrases are hard to break this early on. MPC wallets and passkeys are a good solution for easy onboarding and key management - it’s still early days, but it's exciting to see new solutions emerge that facilitate easy onboarding.

3. Web3 Social

Web3 social platforms provide a compelling solution to the pain points of privately owned Web2 social media channels. Many new projects are available across various blockchains focused on privacy and ownership. 

Protocols like Farcaster (a decentralized social network built on Ethereum) are rising in popularity by creating a more seamless experience, easy onboarding, and utility for builders, developers, and Web3 netizens alike. We saw a lot of buzz around Frames, a feature that enables users to embed functionality on Farcaster applications without leaving the app itself.

4. Community engagement: points are the new airdrops

Everything in crypto revolves around community. Now more than ever, builders are finding additional ways to engage their members by introducing new incentives and point systems. 

While airdrops are still popular, we’re seeing an evolution towards crypto points as a compliment to the traditional airdrop - rewarding specific actions with collectibles and off-chain tokens. 

5. Industry spirits are high, and “we’re back”

It seemed like “we’re back” punctuated much of our discussions with other conference attendees, and with good reason. With prices up and a community of active builders, spirits were high. The general direction of the industry is focused (more than ever) on onboarding the next billion users, which is exciting. We’re here for it and are looking forward to working together as an industry to welcome the next wave of users.

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What are some of your favorite dapps and projects? Let us know what you’d like to see next and why, then tag @Valora.

Community feedback is essential for shaping the future of mobile, user-friendly crypto. We also encourage you to request new features in Valora.