Nansen Founder: 11 Catalysts for the New Bull Market and 6 Promising Trends

Recently, the

cryptocurrency

market has performed exceptionally well. Alex Svanevik, the founder of blockchain data analytics platform Nansen, shared on Twitter an analysis of 11 catalysts driving the next bull market. The key factors include:

• The worst times are behind us; forced sellers have disappeared, and scammers are in jail.

• Approval of a BTC spot ETF may happen in the next few months, attracting institutional investors.

• Fintech companies are entering the blockchain space, with PayPal issuing stablecoins as a notable signal. Other fintech firms may follow suit, and some banks might launch stablecoins in 2024.

• New products for socializing and betting that are genuinely worth participating in have emerged.

• NFT trading volume hit bottom a month ago and has been on an upward trend since.

• Web3 games developed over the past 2 years are starting to launch, although only one outstanding game is needed.

• Technological advancements make it easier for ordinary people to join, with lower gas fees on L2 and other chains. Account abstraction means entering the crypto world without needing mnemonic phrases.

• DeFi 2.0 relies on collateral tokens (LST) and real-world assets (RWA), providing sustainable yields without relying on Ponzi schemes.

• MicroStrategy's unrealized profit from Bitcoin surpassed $1 billion, potentially triggering FOMO among enterprises.

• The Federal Reserve's monetary policy has not shifted yet and might even reduce interest rates in the future.

• Bitcoin will undergo halving next year.

In addition, Alex Svanevik believes that DeFi 1.0, which gained profits from liquidity mining and Ponzi schemes, is unsustainable. DeFi 2.0, which gains profits from LST and RWA, is more sustainable and has already begun. In October, Alex Svanevik shared six major trends in the cryptocurrency market on Twitter:

• Fintech frontend + Crypto backend, with examples like PayPal having stablecoins, and Revolut allowing pledging of ETH.

• Gambling and betting, where L2 and account abstraction make it easier for ordinary users to use applications, and relying on DeFi backend becomes more meaningful.

• RWA – (especially U.S. bonds), where tokenized national debt could consume a significant amount of stablecoin supply.

• Web3 games, with several games set to be released in the next 6 months after over 2 years of development. Although most may fail, a few could achieve significant success. Alex is optimistic about SIPHER Odyssey, MixMob, and Axie Infinity.

• Decentralized socializing, with examples like friend.tech, showing that SocialFi will have a place in the cryptocurrency field after several iterations.

• NFTs combined with physical entities, such as Pudgy Penguins toys being sold on Amazon and Pudgy Toys in Walmart stores in the United States.