Bitcoin
The Crypto Industry Is Increasingly Inching Ahead Amid Mixed Signals
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The last few months for the crypto industry have been a whirlwind. We started the year strong with the approval of Bitcoin and ETH ETFs, an outlook for another defi summer, and regulatory clarifications for Asian markets. However, not everything was roses. We’ve seen commentators disappointed by legal actions affecting the very nature of crypto, as well as analysts warning of a short-lived bull market.
If someone had asked what the outcome of such setbacks would be a few years ago, it probably would have been a complete market failure. But it’s different this round. While the crypto industry has had immediate market reactions, its overall response to sporadic shocks has been largely stable. What makes this year different from previous ones?
The answer lies in the three constants amid the mixed signals surrounding the industry’s long-term trajectory: community resilience, the new injection of the crypto-curious, and the newly established standards for crypto businesses.
After years of recovery, self-education and construction, the industry and its community are back stronger than ever. You’ve experienced enough to understand that crash survivors are here for the long haul and with plans to realize the vision of a blockchain-powered economy and society.
To support the community’s optimism, we’ve seen unique innovations emerge and evolve this year. This includes the expansion of modular chains and application layers to turbocharge use cases, greater cross-chain interoperability and liquidity, and the prospects for continued innovation with Bitcoin Layers 2. Such developments ensure that our industry continues to improve and grow with a tangible trajectory to secure our future. It also sparks enthusiasm among the community, who eagerly seek to not only support new developments in existing chains, but also emerging projects, building our industry with a constructive long-term contribution.
This enthusiasm turned into vibrant activity in the community. As an exchange, KuCoin alone has witnessed spot trading volume with a outbreak by 121.85% in Q1 2024, and token pre-market trading volume soared by 68% to reach $23.12 million. This shows that the community is ready to support the industry through another new phase of growth that is anchored in unique technological innovations and evolutions, regardless of the size of the project.
The first digital native generation, i.e. Gen Z, exploring cryptography has added momentum to the industry’s steady growth. We witnessed a new sense of optimism as Millennials began to engage with crypto, with a stronger receptivity to the industry compared to previous generations. Now, as we see Gen Z enter the financial realm, we see the digitally native generation with a greater level of willingness to gain exposure to decentralized technologies and assets. For example, in Blockchain Education and Career Survey 2024, where the majority of its responses came from people aged between 18 and 35, found what one in two respondents were interested in the economics of cryptography and definition. A similar survey last year in India also revealed that crypto adoption has increased to almost 50% for Gen Z, with the same level of adoption seen in many other markets – showing that as new generations enter the economic sphere, more crypto becomes embedded in the mainstream.
Additionally, new user momentum has quadrupled with continued Prohibited of new users from Latin America, the Middle East and Africa. As a viable alternative to the traditional financial system, cryptography has been a attractive choice only for Latin America, showing strong popular adoption and activity on centralized exchanges. While the industry has focused on establishing itself in established financial hubs over the past decade, it is now moving into new markets that can explore blockchain-powered financial services to bypass economic infrastructures and systems, unearthing practical use cases.
The path to sustained growth is paved with responsible business practices. After many challenging times for the industry, crypto companies are focused on increasing trust and longevity with stronger governance and infrastructure. Depending on their level of exposure to the broader crypto community, participants can take different steps to remain compliant and responsible, but one universal principle applies to everyone: continue education and monitoring.
As regulators address knowledge gaps and assess their role in the current financial system, the industry must also play its role in ensuring close coordination with regulators to provide clarity on the ever-evolving crypto landscape and find alignment . This would be a challenging journey, with each jurisdiction bringing its own complexity and perspectives, albeit the most difficult of all. Still, it is up to industry players to comply with regulatory requirements in their respective operating jurisdictions.
As an industry player, it cannot be overstated that we are here for the long haul. We have now embarked on a new phase of growth and innovation, supported by the power of the community, new users and refined business models, so why do we stop here?
While we have strong driving forces supporting us, industry players can continue building, whether it’s maintaining stable business performance, adding new functionality to their infrastructure, or finding new avenues for collaboration. A rising tide lifts all boats and when we prioritize industry growth, individual innovators will be best placed to enjoy the fruits of our collective achievements. Together, we can build a crypto ecosystem that thrives on innovation, trust and collaboration – a future that will benefit everyone involved.
Johnny Liu
Johnny Liu is co-founder and CEO of KuCoin, a leading global cryptocurrency exchange. Founded in 2017, KuCoin has become one of the top five crypto exchanges on the market and has attracted more than 30 million registered users from 207 countries. At KuCoin, Johnny leads the company’s daily operations, spot trading, KuCoin Earn, and the expansion and prosperity of the KCS ecosystem. He also previously led the listing, business development and investment team. He is also the main contributor to KuCoin Spotlight and Earn. Before joining KuCoin, Johnny accumulated extensive experience in the e-commerce, automotive and technology sectors.