Will the Banking Crisis Impact Web3? π
Regulation of crypto and banking rails has increased after some banks failed.
Banking Crisis Outlook
While recent bearish sentiment in crypto circles has been fueled by the breakdown of crypto-focused banks, some market observers believe that a banking crisis could strengthen the crypto ecosystem in the long term. The collapses of Silicon Valley Bank, Signature Bank, and Silvergate Bank have led to increased regulatory scrutiny on crypto and banking rails serving the industry. However, experts in this matter maintain an optimistic long-term outlook, suggesting that clampdowns could eventually create a more robust crypto economy. This may occur as crypto firms move to jurisdictions that are more receptive to financial technology innovators, leading to stronger infrastructure and a less hostile environment. Furthermore on the flip side we could see increased pressure on the SEC to provide clarity and guidance as well as regulation that could provide pathways for crypto and web3 as more attention has been paid in light of the recent banking crisis. Also crypto in itself has been proving its use case as a hedge against the traditional finance system.Β
Macro Trends In Web3
At SXSW 2023, Web3 emerged as a major theme, despite declining interest in NFTs and the ongoing bear market. The conference saw major brands and consultancy firms focusing on the potential of Web3 technology to disrupt various industries, such as finance, healthcare, and social media. Avery Akkineni, president of Vayner3, a Web3 consultancy firm, highlighted the importance of brands understanding and strategizing towards Web3. During the event, Vayner3 and Coinbase hosted a panel discussion on Web3 and the future of customer engagement. While panelists like Rachel Weiss from L'Oreal Bold Ventures expressed excitement about Web3's potential, others, like David Lee from Samsung Next, noted that they are still waiting for a "ChatGPT moment" to overtake Web3.
Also prominent web3 games and platforms were featured at GDC (Game Developer Conference). Immutable X announced a partnership with Polygon using their zkEVM tech stack. Other game studios either talked about blockchain or were featured around the event itself like Midnight Society.Β
NFT Markets During Bank Crisis
NFT volume in itself has seen a dip in volume but itβs still up from the beginning of the year due to the new marketplaces like Blur entering the space with incentives for traders. So it appears the NFT space seems like it's still moving along despite the banking crisis.
Ethereum has been performing quite well and has seen 3 month highs. With Bitcoin and Eth performing well this could mean a positive trickle down effect keeping web3 platforms humming along.Β
In Conclusion
In conclusion, the prominence of Web3 at events like GDC and SXSW 2023 signals a growing interest in the technology's potential to transform various industries, despite the current bear market and waning enthusiasm for NFTs. As more brands and businesses explore the strategic implementation of Web3, they are engaging in experimentation to understand its potential applications and benefits. While some industry leaders are eagerly embracing Web3's potential to revolutionize areas like customer engagement and ownership, others await a defining moment for Web3's widespread adoption. Ultimately, the focus on Web3 at major events like GDC and SXSW indicate an ongoing shift towards the next era of the internet, marked by more immersive, personalized, and ownable experiences for users.
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