We
have
arrived
at
the
start
of
the
next
bull
market.
If
history
is
our
guide,
these
cycles
are
powered
by
multiple
factors
including
Bitcoin’s
halving
events,
shifts
in
macroeconomic
landscapes
around
U.S.
elections
and
Federal
Reserve
interest
rates,
as
well
as
the
advent
of
new
Web3
and
DeFi
innovations.
Yield
farming,
for
instance,
was
a
significant
innovation
that
fueled
the
previous
cycle.
The
upcoming
cycle
may
potentially
feature
a
mix
of
zero-knowledge
proofs,
novel
DeFi
primitives
like
restaking,
and
innovative
blockchain
stacks
that
offer
modularity,
composability,
and
are
primed
for
interchain
asset
and
data
movement.
This
post
is
part
of
CoinDesk’s
“Crypto
2024”
predictions
package.
Each
cycle
is
accompanied
by
a
unique
cultural
narrative.
The
last
cycle
was
dominated
by
art
NFTs,
sparked
by
Beeple’s
$69
million
sale
at
Christie’s,
and
further
fueled
by
the
PFP
craze
and
the
fine
arts
use
case
growing
with
proponents
at
the
scale
of
Sotheby’s
and
Pace
Gallery.
The
present
cycle,
predictions
suggest,
will
be
molded
by
the
SocialFi
narrative,
as
platforms
like
Friend.Tech
have
already
set
the
stage.
Institutional
and
regulatory
narratives,
too,
play
a
crucial
role.
The
last
cycle
saw
MicroStrategy’s
Michael
Saylor
introducing
Bitcoin
to
the
corporate
balance
sheet,
while
this
cycle
is
marked
by
traditional
financial
institutions
and
fintech
giants
applying
for
crypto
ETFs
and
launching
stablecoins.
On
the
regulatory
front,
the
U.S.
is
still
wrestling
with
crypto
regulations,
causing
many
projects
to
market
their
new
crypto
products
outside
the
U.S.
This
is
why
I
argue
that
the
next
bull
market
will
have
a
distinct
geographical
flavor,
with
Asia
taking
center
stage.
The
enthusiasm
for
crypto
in
Asia
is
hard
to
miss.
A
stark
contrast
was
visible
between
less
vibrant
fall
conferences
in
the
States
and
the
buzzing
scenes
at
Korea
Blockchain
Week
and
Token2049
in
Singapore.
Cities
like
Bangkok,
Ho
Chi
Minh
City,
Jakarta,
Manila,
and
Kuala
Lumpur,
not
to
mention
a
handful
of
large
Indian
cities,
are
home
to
substantial
developer
communities
and
flourishing
Web3
scenes,
bolstered
by
government
support
and
enterprise
adoption.
The
thriving
environment
at
Token2049,
in
Singapore,
the
real
capital
being
deployed
by
APAC
investors
into
crypto
projects,
and
the
increasing
appetite
for
NFTs
collectively
suggest
a
region
primed
to
drive
the
next
bull
market.
While
Asian
governments
vie
for
the
top
spot
as
a
crypto
hub,
the
U.S.
seems
to
discourage
its
crypto
entrepreneurs.
As
a
result,
marketing
campaigns
are
excluding
the
U.S.,
businesses
are
expanding
in
Asia,
Europe,
and
the
Middle
East
to
cater
to
growing
demand,
and
entrepreneurs
are
relocating
to
jurisdictions
with
a
friendlier
regulatory
environment.
Opening
Serotonin
offices
in
APAC,
I’ve
witnessed
firsthand
the
unique
advantages
these
markets
offer
to
growing
crypto
projects.
From
tech-savvy,
mobile-first
audiences
to
high-quality
developers
eager
to
contribute
to
decentralized
projects,
the
region
is
brimming
with
potential.
There’s
a
palpable
enthusiasm
for
Web3
culture
and
a
readiness
to
adopt
new
technologies,
particularly
SocialFi,
which
is
already
the
norm
in
the
region,
thanks
to
exposure
to
WeChat.
(SocialFi
refers
to
applications
allowing
users
to
monetize
social
interactions
and
control
their
own
data.)
Telegram,
ubiquitously
used
for
messaging
by
the
Web3
community
in
Asia,
is
already
testing
out
its
self-custody
crypto
wallet
in-app
with
non-U.S.
users.
Combining
this
with
the
regulatory
friendliness
of
places
like
Hong
Kong
and
Singapore,
we
are
looking
at
a
potentially
explosive
crypto
boom.
To
us
Americans,
it
feels
borderline
unimaginable
that
First
Digital
in
Hong
Kong,
for
example,
could
launch
its
stablecoin,
FDUSD,
with
regulatory
approval,
when
fintech
mainstays
like
PayPal
face
subpoenas
for
doing
the
same
in
the
US.
This
“Asia
speed,”
as
we
at
Serotonin
affectionately
term
it,
is
a
testament
to
the
region’s
rapid
adoption
and
contribution
to
Web3
technologies.
I
believe
this
dynamic
will
steer
the
upcoming
bull
market
and
introduce
a
geographical
narrative
to
the
crypto
cycle.
However,
I
foresee
this
scenario
changing
in
about
18
months,
post
the
next
U.S.
election.
I
expect
regulatory
clarity
for
crypto
in
the
U.S.
to
emerge,
sparking
a
new
cycle
of
enterprise
adoption
and
marketing
to
U.S.
consumers.
This
period
will
also
see
the
re-emergence
of
the
U.S.
as
a
primary
driver
of
Web3
innovation
and
adoption,
contributing
to
a
thriving
global
Web3
ecosystem,
with
leadership
from
Asia
and
other
markets.
In
the
meantime,
our
strategy
is
to
use
this
time
to
grow
our
business
with
a
focus
on
Asia.
We’re
facilitating
Western
projects’
entry
into
Asian
markets,
forming
partnerships
with
Eastern-originated
projects
to
go
global,
and
connecting
with
English-speakers
in
Europe
and
the
Middle
East.
All
things
considered,
the
crypto
world
is
set
for
a
more
diverse
and
dynamic
era
driven
by
various
global
forces,
with
Asia
leading
the
charge
in
the
imminent
bull
cycle.
