The start of 2024 has been marked by snowfall and a Norway dressed in winter clothes. But we've also started the year by asking the question: Is the crypto winter now finally over? We think the answer to the question is yes, and give you 10 good reasons why we think that's the case.
The period from 2022 to now has been heavily marked by what has often been referred to as a crypto winter. Such a period is characterized not only by falling prices, but also by the drying up of capital flows, by layoffs and downsizing, and by the failure to launch new projects and apps. But a crypto winter can also be characterized by construction, in that companies, projects and startups work steadily but quietly, both with innovative technologies and new solutions. Please also read our article “Cryptovinter in Lillestrøm?”, where in November 2022 we took the theme literature on the sector.
Now, however, we believe that the crypto winter is over, for this time. See our video commentary with 10 good reasons, taken up in the snow alley in Oslo, but also scroll down to find an extended justification for the 10 points we have selected.
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Bitcoin is increasingly recognized as a separate asset class, both as an alternative to gold and as the “internet of money”. Bitcoin saw a 160% increase in value in 2023, substantially above both traditional asset classes and other alternative investments.
Institutional investors and classical finance are showing a growing interest in investments in Bitcoin and crypto, right now primarily represented through the interest in Bitcoin spot-based ETFs. But also the tokenization of Real World Assets (RWA), like stocks, bonds, gold, property etc is becoming a strong growing area of interest both for banks and investors.
While the US is still marked by the US stock exchange authorities' (SECs) battle against crypto projects that they define as securities, progress is being made in the regulation of crypto and stablecoins in Europe, the Middle East, Asia, Africa and Latin America. Although it is often taken two steps forward and one step back, the direction is still one of gradually increasing clarity and predictability. In Europe, there is also a great deal of interest the introduction of MiCA, which is scheduled to start in the summer of 2024.
In 2023, there have been no new major crypto scandals ala FTX and Terra, both of which collapsed in 2022 after massive fraud. Also, hacks and scams are on the decline, from $4.4 billion USD in 2022, but are still at an overly high level with $2 billion in 2023. At the same time, there is increasing interest in managing their cryptocurrencies themselves, referred to as self-custody, and investments in various security solutions.
In recent years, investment by the venture industry in web3 and blockchain-based solutions has declined significantly and from quarter to quarter. In the fourth quarter of 2023, however, the trend reversed. The investments in crypto startups fetched in the period October-December in US$3.1 billion, versus US$2.1 billion in Q2 and US$1.7 billion in Q3.
2022 was a disastrous year especially for developers within web3, marked both by mass layoffs and a depressive job market. But here, too, it seems that the trend is now reversing, where both crypto exchanges and startups Notifications of new recruits. The job market in the sector is still dominated by the need for developers, but other types of positions are now increasingly sought, including in business development, asset management and marketing.
The trend for decentralized apps (dapps) turned around last fall, and now new apps and upgrades are being released week after week. These solutions companies have been working on along the way in the crypto winter and without the big headlines. But here has the huge capital flow from the venture fire in 2021 and 2022, a total of 62 billion USD, been of great help.
Apps that help build ecosystems and infrastructure within web3 are still a major area of interest, but we are now also seeing growing interest in consumer-based web3 solutions. Both DeFi (Decentralized Finance), Gaming, metaverse, social media, and NFTs are sectors that are making a comeback.
Blockchain technology is still young, and has made it difficult to deliver on both scale, security and user experience. However, new, purpose-built Layer-1 blockchains, Layer-2 solutions based on Zero-Knowledge Proof technology and modular blockchain technology offer greatly increasing flexibility, performance and scalability. This not only increases scalability, but also contributes to better user experiences.
The barrier to investing in crypto or adopting a blockchain-based app is still way too high. But we are now also seeing the emergence of web2.5 strategies, combining technologies from the web2 and web3 worlds, for example by allowing users to register and log in to an app using well-known tools such as email, Google or Facebook. Many well-known brands, in retail, automotive, sports and fashion, are now benefiting from this by building stronger relationships with their customers and fans in the form of community platforms or loyalty solutions.
We wish you a happy 2024! We at Kaupr are going to be paying attention.
The start of 2024 has been marked by snowfall and a Norway dressed in winter clothes. But we've also started the year by asking the question: Is the crypto winter now finally over? We think the answer to the question is yes, and give you 10 good reasons why we think that's the case.
The period from 2022 to now has been heavily marked by what has often been referred to as a crypto winter. Such a period is characterized not only by falling prices, but also by the drying up of capital flows, by layoffs and downsizing, and by the failure to launch new projects and apps. But a crypto winter can also be characterized by construction, in that companies, projects and startups work steadily but quietly, both with innovative technologies and new solutions. Please also read our article “Cryptovinter in Lillestrøm?”, where in November 2022 we took the theme literature on the sector.
Now, however, we believe that the crypto winter is over, for this time. See our video commentary with 10 good reasons, taken up in the snow alley in Oslo, but also scroll down to find an extended justification for the 10 points we have selected.
<iframe width="100%" height="400" src="https://www.youtube.com/embed/UcR18V116tE?si=CtkREbvy9S7Ou0RW" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
Bitcoin is increasingly recognized as a separate asset class, both as an alternative to gold and as the “internet of money”. Bitcoin saw a 160% increase in value in 2023, substantially above both traditional asset classes and other alternative investments.
Institutional investors and classical finance are showing a growing interest in investments in Bitcoin and crypto, right now primarily represented through the interest in Bitcoin spot-based ETFs. But also the tokenization of Real World Assets (RWA), like stocks, bonds, gold, property etc is becoming a strong growing area of interest both for banks and investors.
While the US is still marked by the US stock exchange authorities' (SECs) battle against crypto projects that they define as securities, progress is being made in the regulation of crypto and stablecoins in Europe, the Middle East, Asia, Africa and Latin America. Although it is often taken two steps forward and one step back, the direction is still one of gradually increasing clarity and predictability. In Europe, there is also a great deal of interest the introduction of MiCA, which is scheduled to start in the summer of 2024.
In 2023, there have been no new major crypto scandals ala FTX and Terra, both of which collapsed in 2022 after massive fraud. Also, hacks and scams are on the decline, from $4.4 billion USD in 2022, but are still at an overly high level with $2 billion in 2023. At the same time, there is increasing interest in managing their cryptocurrencies themselves, referred to as self-custody, and investments in various security solutions.
In recent years, investment by the venture industry in web3 and blockchain-based solutions has declined significantly and from quarter to quarter. In the fourth quarter of 2023, however, the trend reversed. The investments in crypto startups fetched in the period October-December in US$3.1 billion, versus US$2.1 billion in Q2 and US$1.7 billion in Q3.
2022 was a disastrous year especially for developers within web3, marked both by mass layoffs and a depressive job market. But here, too, it seems that the trend is now reversing, where both crypto exchanges and startups Notifications of new recruits. The job market in the sector is still dominated by the need for developers, but other types of positions are now increasingly sought, including in business development, asset management and marketing.
The trend for decentralized apps (dapps) turned around last fall, and now new apps and upgrades are being released week after week. These solutions companies have been working on along the way in the crypto winter and without the big headlines. But here has the huge capital flow from the venture fire in 2021 and 2022, a total of 62 billion USD, been of great help.
Apps that help build ecosystems and infrastructure within web3 are still a major area of interest, but we are now also seeing growing interest in consumer-based web3 solutions. Both DeFi (Decentralized Finance), Gaming, metaverse, social media, and NFTs are sectors that are making a comeback.
Blockchain technology is still young, and has made it difficult to deliver on both scale, security and user experience. However, new, purpose-built Layer-1 blockchains, Layer-2 solutions based on Zero-Knowledge Proof technology and modular blockchain technology offer greatly increasing flexibility, performance and scalability. This not only increases scalability, but also contributes to better user experiences.
The barrier to investing in crypto or adopting a blockchain-based app is still way too high. But we are now also seeing the emergence of web2.5 strategies, combining technologies from the web2 and web3 worlds, for example by allowing users to register and log in to an app using well-known tools such as email, Google or Facebook. Many well-known brands, in retail, automotive, sports and fashion, are now benefiting from this by building stronger relationships with their customers and fans in the form of community platforms or loyalty solutions.
We wish you a happy 2024! We at Kaupr are going to be paying attention.
