Blockchain data analytics platform Nansen’s CEO Alex Svanevik just outlined six themes that he thinks will play a role in the next “cycle” in the crypto market via a Tweet thread.

Many analysts talk about macro themes such as potential easing of interest rates from the Fed and other major central banks, more certainty regarding crypto regulations, and increased institutional adoption as spot crypto ETFs gain approval as major drivers of the next bull run.

But the themes Svanevik outlined were more nuanced and crypto sector-specific. Examine them one by one.

Fintech Adoption Crypto as A Backend

Svanevik noted that major fintech firms are increasingly moving towards using blockchain as their main backend.

1/ Fintech frontend + crypto backend.

PayPal already has a stablecoin. Revolut lets you stake ETH.

And crypto startups like @basedappHQ already feel like fintech products.

Long-term, crypto replaces the backends for fintech.— Alex Svanevik 🐧 (@ASvanevik) October 6, 2023

PayPal has already launched a stablecoin and Revolut is already letting its users stake ETH, he noted.

Fintech firms are attracted to blockchains because of their potential to offer complete transparency, enhanced security, censorship resistance, fast and cheap transactions that offer zero cross border frictions.

“Long-term, crypto replaces the backends for fintech,” Svanevik noted.

Gambling And Betting Moving to Blockchain

Gambling and betting “just makes a lot more sense with a DeFi backend,” Svanevik noted, explaining that “instead of house taking a spread”, protocols can “live off the yields on capital”.

2/ Gambling and betting.

Just makes a lot more sense with a DeFi backend. Instead of house taking a spread, it can live off the yields on capital.

L2s and account abstraction make apps more accessible to normies.@LooksRare launched Yolo. @rollbitcom @PoolTogether_ etc— Alex Svanevik 🐧 (@ASvanevik) October 6, 2023

Crypto casinos have been a huge success in 2023, with the likes of Rollbit seeing explosive user growth.

Meanwhile, a new Telegram-based crypto Casino called TG.Casino is currently enjoying a highly successful presale, having last raised over $725,000 to power its new platform.

Web3 can solve a number of problems that have plagued the traditional gambling industry by providing greater transparency, security and offering an avenue to gamble without having to give up custody of your funds.

Real World Assets (RWAs)

Svanevik predicts that real-world assets will increasingly move on-chain, particularly US government bonds or “t-bills”.

Given they are yield-bearing, Svanevik hypothesized that on-chain t-bills will eventually eat up a substantial portion of the stablecoin supply.

3/ RWAs – specifically T-bills.

The continuation of the stablecoin arc.@superstatefunds @MountainUSDM @OpenEden_Labs and others will be prominent in 2024.

Tokenized T-bills may actually eat a lot of stablecoin supply!

Would be surprised if @circle @Tether_to don’t move here.— Alex Svanevik 🐧 (@ASvanevik) October 6, 2023

He noted he “would be surprised if @circle (and) @Tether_to don’t move here”.

The total market cap of all USDT and USDC currently in issuance was last around $110  billion.

Web3 Gaming

Svanevik admitted that he has been touting the potential of web3 gaming for some time, but noted that, “in the next 6 months, we’ll see games launch after 2+ years of building”.

4/ Web3 gaming.

Yep been saying this for a while. But in the next 6 months we’ll see games launch after 2+ years of building.

Most will fail; a handful could become massive successes.

I’m backing @playSIPHER @MixMobOrigin and of course @AxieInfinity.— Alex Svanevik 🐧 (@ASvanevik) October 6, 2023

He noted he is backing Sipher Odyssey, MixMob and Axie Infinity.

SocialFi

Given the recent growth of protocols such as friend.tech, Svanevik noted he expects SocialFi to be a major pillar of future crypto growth.

5/ SocialFi.

Another unsurprising entry. But you only need to look onchain to see @friendtech having real usage.

Again L2s and account abstraction make these apps more accessible.

It’ll take a few iterations (and forks) but I think this is here to stay.— Alex Svanevik 🐧 (@ASvanevik) October 6, 2023

Recent reports suggest that the development team behind friend.tech has amassed nearly $20 million in revenue since its launch in August.

At its current pace, the platform is projected to generate an annualized revenue of $180 million.

“It’ll take a few iterations (and forks), but I think this (SocialFi) is here to stay”, he noted.

Physical NFTs

Svanevik hailed Pudgy Penguins’ Luca Netz as “showing us the path to Walmart” for NFTs.

One small step for Pudgy Penguins, one giant leap for Web3.

Web3 IP and blockchain technology are now front and center in the worlds biggest retailer. https://t.co/Vo4CP9Z1Zh pic.twitter.com/PHnESxUrI1— Luca Netz 🐧 (@LucaNetz) September 26, 2023

Pudgy Toys are now available across 2,000 Walmarts in the USA.

As per Walmart, “each toy has an official, scannable, redeemable code that unlocks digital penguin customization using different trait boxes”.

“That way, you can obtain rare and epic traits and have a one-of-a-kind forever Pudgy Penguin registered to your name on the blockchain”.