Consumer crypto is still in its “GPT-2 moment”: the infrastructure works, growth curves are bending upward, and a true inflection point is close.
What makes crypto distinct from Web2 is that it turns everything into a market. Early products look like trading hubs and casinos because they can profit with only a handful of users that can tolerate high fees, but that ceiling is low, since most people aren’t gamblers.
The next wave of crypto consumer apps will monetize by building full-fledged economies around their products. Farcaster is at the edge of this. That changes the game in two ways:
- Higher LTV per user. When users own and trade assets, their economic value skyrockets.
- A bigger, slower path to scale at first. We’re at the early stage of the S curve here. To cross the chasm, teams must abandon the comfortable, highly profitable niche and chase mainstream users. Revenue per user starts lower, but total revenue balloons as the user base compounds.
There is already 250B worth of Stablecoins circulating, even with today’s small user pool. That is proof that we’re only scratching the surface. Onwards! 2 replies
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