What’s Brewing in Web3 Points to a Hopeful Horizon
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By Alex Benfield |
This summer has been pretty boring by crypto market standards. But if you look beneath the surface of this quiet period, there's a lot brewing in the world of crypto and web3.
You see, the narratives for the next bull market are currently developing behind the scenes. In fact, we can already start to see some subtle hints of the next big sectors of the crypto market.
One such brewing storyline that has remained on a slow simmer is the regulatory developments around crypto.
Indeed, these recent regulatory movements — particularly the ongoing Ripple (XRP, “B”) case and the various crypto exchange-traded fund applications by financial behemoths like BlackRock (BLK) — have the potential to drastically reshape the crypto landscape.
To be specific, the resolution of the Ripple case could greatly impact how cryptocurrencies are classified in the future. Since the recent ruling suggests that the XRP token itself is not a security, this could set the precedent that many other existing crypto tokens aren’t securities either.
This, in turn, could bring much-needed clarity and transparency to the crypto market, potentially opening the floodgates for institutional money.
Next up, the decisions on crypto ETF applications could also play a vital role in shaping the future of the crypto market.
If approved, these ETFs would provide a much easier and safer way for traditional investors to gain exposure to the crypto market … without having to navigate the technicalities and risks of owning and storing actual cryptos.
However, these positive developments aren't happening in a vacuum. They are occurring amid an unsettling backdrop of a perceived crypto crackdown led by figures like Gary Gensler, the current chair of the U.S. Securities and Exchange Commission.
It’s important to understand the potential impact of these regulatory moves on the crypto market, as they could either hinder or propel the next bull run.
Additionally, there’s excitement currently brewing in other areas of web3, such as the non-fungible token sector.
If you recall, NFTs exploded in popularity during the last cycle and onboarded many new retail customers to the world of web3.
In fact, demand was so high that well-known projects like Bored Ape Yacht Club and CryptoPunks grew in value to astronomical numbers, with some selling for more than 100 Ethereum (ETH, “B”). That’s approximately $183,000 in today’s prices!
Unfortunately, the bear market wasn’t particularly kind to NFTs, with many valuations plummeting since then. But interestingly enough, NFTs seem to trade in an uncorrelated fashion to the rest of the crypto market.
So far this summer, it seems that the NFT market may have started its bottoming period, and we are seeing excitement brew in some projects once again.
For instance, Beeple — perhaps the most famous NFT artist out there who has been featured in Christie’s auctions multiple times — just purchased a CryptoPunk yesterday for over 100 ETH.
Now, this purchase is certainly a testament to Beeple’s confidence in the project and the NFT market as a whole.
Going forward, a revival in the NFT market could once again onboard retail investors by the boatload. And a resurgence in the retail market would be the final sign that the bull market is back.
Notable News, Notes and Tweets
- If you’re interested in reading more about the CryptoPunk that Beeple purchased, you can read up on it here.
- If you don’t think that the American economy is in any trouble after suffering the fastest interest rate hike period in years, just factor in that credit card debt is also on the rise.
- And if that doesn’t have you concerned … the U.S. Credit Rating was downgraded yesterday.
What’s Next
The landscape of the crypto market continues to evolve, painting a multifaceted picture that intertwines regulatory uncertainty, innovation and resilience.
While challenges persist — such as regulatory crackdowns led by key figures — these hurdles can be overcome. In fact, the recent ruling in the Ripple case, the ongoing applications for ETFs and the revival in the NFT market underscore a sense of optimism and opportunity.
As the crypto world navigates these complex waters, 2024 holds promise for a more mature, transparent and exciting market.
A resurgence in the retail market, coupled with increased institutional interest, could pave the way for a new bull run.
The opportunities for innovation, collaboration and growth in the crypto space are ripe, and the future looks bright for those willing to engage with it intelligently and strategically.
Investors, enthusiasts and newcomers to the crypto space would do well to keep a keen eye on these developments, as they could herald a transformative period for the industry.
So, be sure to check back in with us at Weiss Crypto Daily for the latest headlines and crypto news.
Best,
Alex