<aside> 💡 All the pieces are in place for mainstream blockchain adoption to finally become a reality.

The industry is better regulated, leading projects have better price stability, and decentralized applications are more transparent and time-tested overall. And while the Web3-RWA link is now established, mass market adoption is going to require an approach that compels the crypto-curious, not only experienced ones.

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THE MARKET OPPORTUNITY

The Web3 market is projected to grow significantly over the next few years. According to the May 2022 report from well-known Emergen Research, the Web3 market was valued at $9 billion in 2020 and is expected to reach $81.5 Billion by 2030.

The underlying technology trends show broad potential for upcoming years:

• Cryptocurrencies are a key component of the Web3 market, and their market capitalization has grown rapidly in recent years. As of February 2023, the total market capitalization of all cryptocurrencies is around $2.5 trillion, according to CoinMarketCap.
• Non-fungible tokens (NFTs) saw explosive growth in 2021 with total sales reaching $10.7 billion, up from just $250 million in 2020, according to DappRadar. McKinsey & Company surveyed 25 to 44-year-old participants and found that 20% owned digital assets, two-thirds of those had already made payments using digital assets, and over half had used NFTs.*

*Meet the metaverse: Creating real value in a virtual world, McKinsey, June 15, 2022

• Decentralized Finance (DeFi) protocols have grown from under $1 billion in early 2020 to over $150 billion in TLV as of February 2023, according to DeFi Pulse, seizing the attention of technology developers, investors, and financial institutions. The Total Value Locked (TVL) measures the value of all assets deposited in smart contract addresses that generate economic activity.
• User Adoption: There are enough signs of user adoption growth for web3 technologies, such as the number of unique wallet addresses on Ethereum, a key Web3 network. It has grown since 2017 from ~1 million to over 200 million as of February 2023, according to Etherscan.

Web3 Mass Adoption: A Matter Of Time

Even after Bitcoin has fallen nearly 70% from its late 2021 high and as VCs pull back on investments in other sectors, venture activity in crypto and blockchain startups is as busy as ever.**

*Kevin Kelleher, “What winter? Crypto VCs continue their spending spree,” Fortune, July 27, 2022

Overall, the global blockchain market has grown from $3B in 2020 to $11B in 2022 and is expected to surge above $39B by 2025 and $265B by 2028, reflecting a growing demand for blockchain services.***

*** ”Global Blockchain Market Report 2023-2028” PR Newswire, Nov 23, 2023*

There is sufficient proof of demand to estimate a total available market (TAM) of $2 trillion in December 2023.

BRINGING CRYPTO TO THE REAL WORLD

Out of the $2T available crypto market, the introduction of RWA tokenization has created a serviceable available market (SAM) of $40B, including utility tokens, blue-chip NFTs, and such.