This article will discuss and analyze various use cases in consumer crypto, from dapps like Fantasy Top in the socialfi space to physical clothing brands like 9dcc utilizing NFC technology that feature ‘phygital’ concepts. Furthermore, the prediction market space within crypto will be analyzed, as platforms such as Polymarket begin to experience increased user activity leading up to the 2024 U.S. Presidential Election. Whether it be software, physical products, or a combination of the two, it’s always intriguing to look at the possibilities that can be powered by crypto; it feels like the surface is just beginning to be scratched with regards to what’s possible and the sky’s the limit for innovators to build new use cases in both the near and far future.
Socialfi in particular has been a hot topic as of late with the recent news of the once incredibly popular socialfi app Friend Tech shutting down. While the app generated around $50 million in revenue and had great potential at peak user activity levels, the community’s suggestions for improvements were not implemented or even listened to, and that disconnect is a core reason for Friend Tech’s eventual downfall. Other socialfi apps still building today include @timedotfun and @drakulaapp (on X), both of which are building on Base L2, and @fantasy_top_ (on X), which is continuing to operate on Blast L2. Despite the recent bearish sentiment around socialfi due to Friend Tech’s public failure, I’m personally bullish on this sub-sector within the consumer crypto space as there’s reason to believe mistakes will be learned from and new innovations will be created by talented builders. I personally believe socialfi apps are best fit to be built on L1 blockchains such as Solana, or the upcoming Monad mainnet; L2s still have too much friction for people who are brand new to crypto, and it’s easier from a user experience perspective to not have to constantly swap your tokens (ex: swap L1 ETH for Base ETH).
Shifting over to physical use cases for crypto, 9dcc has long been regarded as one of the first crypto-native fashion brands that is continuing to innovate today. Featured in their products are unique NFC chips that tokenize the physical clothing pieces onchain and verify ownership and production details. 9dcc has grown over the past couple of years and is a leader in the crypto luxury fashion space; it will be interesting to see other use cases in the clothing space as it pertains to blockchains and technology powered by crypto. Other physical use cases include products such as Ape Water in the food and beverage space, a somewhat similar concept to 9dcc where the can is scanned and unique information then appears as a result of the connection. Ticketing for events has also been a major theme in the physical space, as tokenproof is a well known brand that enables individuals to get into physical events such as festivals and concerts through owning particular crypto assets like NFTs. This area within consumer crypto is certainly one to watch closely, as I feel it’s due for further maturation and growth as time passes and the tools available to builders only continue to improve.
Another interesting sub-sector within the consumer crypto space is prediction markets. Polymarket is a leader in this space, and there are a few reasons as to why they’ve been doing so well lately in my opinion. When an individual new to crypto can create an account without a crypto wallet, that’s a huge plus; Polymarket accomplishes exactly that by enabling users to create an account through their email, creating a quick and frictionless signup for people who are potentially being introduced to crypto for the very first time. It’s important to think about these little changes with regards to user experience, as the less actions a person has to take, the better chance they’ll be onboarded to the crypto space and have a smooth first experience. Polymarket is unique in the sense that anyone can bet on anything; for example, you were able to bet on whether one of the presidential candidates would say a specific word at the debate last week. Polymarket has made betting fun, and despite being a crypto-focused company, they’ve managed to create a frictionless experience that puts the annoying aspects of UX commonly seen in crypto far in the background. MarketWatch reported back in July of this year that over $100 million worth of bets was placed in the month of June on Polymarket, which at the time marked an ATH in trading volume for the platform. That number grew to a staggering $472.87 million in trading volume just last month for the month of August according to bitcoin.com, an increase of nearly 5x in just two months and setting a new ATH in the process. The 2024 U.S. Presidential Election is at the heart of the increased activity levels for Polymarket, and their incredible growth doesn’t seem to be slowing down anytime soon as the election is right around the corner in just under two months. I can’t emphasize enough how much I love that Polymarket doesn’t require a crypto wallet for new users signing up, but provides the option for individuals familiar with crypto to connect a wallet such as MetaMask or Coinbase Wallet. This provides a welcoming platform for users of all backgrounds, whether it’s an individual that’s brand new to crypto or a seasoned veteran in the crypto space.
There are many other use cases within consumer crypto, but I figured I’d discuss and analyze some of the sub-sectors that have crossed my mind the most lately. I’m particularly passionate about the potential recovery for the socialfi space, and believe that day will come and it’s a matter of when, not if. Physical brands will continue to innovate, and I’m interested in seeing how AI is potentially applied to accelerate companies building in this area. Lastly, looking at prediction markets platforms such as Polymarket is always intriguing as constant innovation seems to be happening in that area and there’s currently massive trading volume levels going on there at the moment. I’m looking forward to watching how these sub-sectors and more continue to develop in the consumer crypto space, and will be on the lookout for new developments that are in the works as well. Thank you for reading this article and be sure to subscribe to keep up with the latest news in crypto.
