Gate.io CEO Dr. Han Lin at ABS2024: We Are Still at the Dawn of a Revolutionary Era

Gate.io CEO Dr. Han Lin delivered an insightful presentation at the Asia Blockchain Summit 2024, focusing on the evolution of the cryptocurrency industry. Dr. Han explored the current state of the crypto sector, emphasizing that while the industry’s growth has been impressive, there remains substantial potential for further expansion.

The Current State of Blockchain and Web3

Dr. Han explained that throughout its existence, the industry has seen remarkable improvements and technological advancements that have made the blockchain more efficient. Furthermore, in recent years governments and regulatory bodies have begun to recognize the importance of blockchain and work to create supportive environments where the industry can continue to thrive. More users are adopting blockchain technology every day, which is making the user base of this technology more diverse and impactful. Now more institutions are showing interest in blockchain technology, proving that the industry is becoming more mature and stable. Dr. Han’s speech discussed the evolution of crypto across seven distinct areas: The Launch, The Tokens/Coins, The Exchanges/Trading Platforms, Trading Volume, Market Cap, The Chains, and The Users.

The History of Crypto

The Launch

Dr. Han began by stating that initially people mined Bitcoin with computers, and later altcoins borrowed this same idea. Later, blockchain projects began to use ICOs, IEOs, and IDOs to launch.

1. ICOs pioneered the new wave of crypto fundraising but have declined in popularity due to regulatory scrutiny and market evolution.
2. IEOs enhanced credibility through established exchanges, providing a safer and more reliable platform for both investors and projects.
3. IDOs allowed projects to launch directly on decentralized exchanges, democratizing access for participants. This method reflects the shift towards more decentralized and community-driven approaches.

Shift Toward Community-Driven Launches There is a noticeable trend towards community-driven launches in the cryptocurrency industry. Memecoins, for instance, have garnered significant attention and participation due to their reliance on strong community support and viral marketing. Additionally, there has been a marked decline in ICO launches as the industry shifts towards more community-focused methods like airdrops. This shift indicates a maturation of the market, where community participation is increasingly prioritized.

The Tokens/Coins

The tokens/coins of focus were BTC and ETH before, and then in 2017 there was a shift to stablecoins. Later centralized exchange (CEX) tokens became popular. In 2020, DeFi took over and then GameFi in 2022. Now memecoins are popular (although they have a long history before the present day). The number of tokens launched every year has also seen a dramatic increase.

The Exchanges/Trading Platforms

Trading platforms offer security and liquidity to millions globally. Solana and Base are popular choices for launching new tokens due to their cost-effectiveness. Dr. Han noted that industry veterans still recall the Mt. Gox launch and subsequent hack, as well as the rise and fall of FTX. Before 2018, launching a centralized exchange (CEX) was relatively inexpensive. However, increased competition and higher barriers to entry post-2018 have made this more challenging. Conversely, the decentralized exchange (DEX) landscape remains more accessible, with lower costs for launching a DEX. After the DeFi summer a lot more DEXs were launched. The market share when compared to CEXs is still quite small, but it is growing. CEX’s still dominate, with a higher percentage of the overall trading volume.

Trading Volume

The trading volume of other coins besides the top 10 is shrinking. This is because the trading volume is concentrated in the top coins. Dr. Han continued with a word of caution to people buying the smaller coins, stating that they should be careful because there might not be enough liquidity if they later wish to sell. Overall, the trading volume is still concentrated heavily in BTC, ETH, and stablecoins.

The Market Cap

Dr. Han described that the market cap of BTC is close to FB and he predicted that in one or two years BTC will surpass Facebook’s market cap. From 2022-2023 BTC’s market cap decreased due to the bear market, but this year it is growing. BTC still dominates among other tokens/coins with more than 50% of the total crypto market cap.

The Chains

Blockchains act as the infrastructure for the entire industry. Solana is currently dominating and is trying to surpass ETH as the most popular blockchain. ETH still has the highest DEX trading volume and TVL, as well as the most active developers.

The Users

Over the past 20 years the number of internet users has grown substantially. However, although the overall numbers are less, crypto users are growing even faster. 11 years ago there were only 1 million cryptocurrency users, and now everyone knows about crypto and more than 500 million people are considered crypto users.

Conclusion

Dr. Han concluded by stating that data suggests that, despite progress, blockchain technology is still relatively new, and we are still at the dawn of a revolutionary era. He emphasized that as the industry continues to evolve, building connections and fostering collaboration will become increasingly important. Dr. Han urged industry leaders and newcomers to persist in pushing the boundaries and exploring the vast possibilities of blockchain technology. Media Contact: Elaine Wang at elaine.w@gate.io Disclaimer: This event is for professional knowledge sharing and networking purposes only. The content herein does not constitute any offer, solicitation, or recommendation of any products or services.