The initial chapter of the cryptoeconomy was famously crafted by Bitcoin, soaring to impressive heights within a decade. As we step into the next phase, Ethereum is at the forefront, setting the stage for a remarkable era filled with cryptocurrency innovations.
However, the big question that has everyone pondering is: what shape will the upcoming whirlwind of crypto activities take?
Predicting tomorrow's events in the cryptoeconomy is challenging, let alone foreseeing what’s to come in the distant future. But by observing existing large-scale trends, we can get an idea of what crypto might look like in a decade. Let's explore these trends further to piece together an analytical yet imaginative picture of 2030's cryptoeconomy.
The Rise of an Optimized Ethereum on the Global Scene
By 2030, Ethereum 2.0 has long been established worldwide, realizing Ethereum’s founding vision: a premium platform for open applications and seamless transactions.
Ethereum’s foundational community, visionary development, and DeFi stronghold ensure it remains the premier smart contract platform, even as other smart contract initiatives flourish regionally for varied reasons. While interoperability dominates, many chains essentially act as sidechains with Ethereum at the center.
At this juncture, with innovations like sharding and layer-two solutions, Ethereum can handle more transactions than industry leaders like Mastercard and Visa. Additionally, these advancements make transactions on Ethereum more cost-effective and quicker compared to traditional options.
DEXes Go Mainstream
Decentralized platforms such as Uniswap have gained remarkable traction since 2020, offering users round-the-clock access to new assets without the need for registration, reiterating the freedom and openness of crypto.
The momentum for these decentralized trading protocols is expected to build up further due to their foundational free and open nature.
It's a clear path that by 2030, decentralized exchanges will be deeply woven into society’s fabric, their inherent complexities largely concealed. They'll evolve from shining stars of a niche market to fundamental components of global finance.
The ERC20 BTC Exodus Is Significant
The trend of tokenizing Bitcoin into Ethereum's ERC20 tokens has surged, largely due to the growing prospects of utilizing these in the DeFi landscape.
As of this post's creation, there were 68,500 BTC represented as tokens on Ethereum, 0.326% of the total supply. By 2030, projections indicate over a third of all Bitcoin, more than 6.9 million BTC, will exist on Ethereum.
This could mean that Ethereum might unintentionally become Bitcoin’s go-to scaling solution. While this may unsettle some Bitcoin enthusiasts today, the practical benefits may lead users to embrace this approach over time.
Stablecoins Are Hits
The current combined market cap of stablecoins has surpassed $17.5 billion. By the year 2030, this figure is projected to soar beyond $1 trillion.
Why the spike? Stablecoins offer unique advantages over traditional fiat, like earning potential through liquidity provision or lending, creating savings opportunities.
Moreover, stablecoins play a pivotal role in bolstering and complementing central bank digital currencies (CBDCs), leading to a blurring line between fiat-pegged tokens and CBDCs, save for truly decentralized entities like MakerDAO’s Dai.
NFTs Evolve into a Market Worth Billions
NFTs, or non-fungible tokens, have emerged as popular on Ethereum, offering unmatched proof of authenticity for digital content such as art, collectibles, and more.
These digital tokens on Ethereum can be infinitely programmed and expanded.
DeFi: Money Legos
NFTs: Media Legos— Jesse Walden (@jessewldn) September 3, 2020
In 2020, the NFT market achieved $100 million in sales, and as these tokens continue revolutionizing creative economies, sales are only expected to skyrocket into the billions by 2030.
DAOs Become Significant Forces
Decentralized Autonomous Organizations, or DAOs, jumped back into the spotlight in 2019 within the Ethereum community before flourishing in 2020.
These digital, democratic, and international cooperative frameworks provide a new paradigm for online community organization, and we’ll witness their growth across various sizes in the coming years.
Every sphere will feel their impact: venture DAOs, esports DAOs, lobbying DAOs, and social DAOs, among others. Essentially, if a group concept exists today, it could have a DAO equivalent by 2030.
Social Money No Longer an Experiment
Social money, or personal tokens, is a budding concept on Ethereum, encapsulating income sharing, community currencies, brand value, or something entirely different.
Dozens of personal tokens have already taken flight via social money platforms like Roll, with individual tokens like Alex Masmejean’s $ALEX token leading the charge. Expect this trend to become a familiar investment strategy by 2030.
DeFi Is Now Just … Finance
Decentralized finance, dubbed 'DeFi', is distinct from conventional finance and wholly novel. Yet this distinction is poised to erode.
Why? Crypto-native earnings via DeFi will expand substantially, luring many, until DeFi-centric finances become standard practice.
In 2030, a diverse range of users, from single consumers to large-scale firms, will manage significant aspects of their finances through DeFi platforms, and by then, the user-experience issues that plagued these platforms will have been resolved.
A Significant Leap in Crypto Privacy
Historically, a major stumbling block for blockchains like Bitcoin and Ethereum was their inadequate privacy solutions.
By 2030, this concern will have vanished. Zero-knowledge protocols and mixer tools will be the norm on Ethereum and beyond, making privacy a default setting rather than a current optional feature.
Simply put, a 2030 crypto user will likely be astounded by the level of privacy they have compared to what’s available today.
Conclusion
The leading projects within today's cryptoeconomy are incredibly promising. While things are still unfolding, their achievements to date build high hopes for billions of future users.
As with everything, there will be high and low points, as the cryptoeconomy has already weathered numerous market cycles. But recent progress in scaling and DeFi indicates a tipping point for massive adoption could arrive, likely making a mainstream presence an achievement within the next ten years.
