The Mainstream Market and its interactions with the DeFi world.

Everything related to blockchain technology has been looked at with a fair share of distrust by traditional investors since its inception, but with the cyclic nature of the BTC, and a market that can no longer be ignored, things have changed a lot from the humble beginnings of our market.

We, as the Synapse Network, and the team behind it, have come a long way since the start of our journey, and with the objectives that we once just had in sight getting closer and closer by the day, we have also begun branching out into more informative content for our community, just like we have begun branching out into different markets.

The last couple of articles that we released on this topic have shown the potential of the DeFi/Web3 world, in relation to pillars of the ecosystem itself, like the NFT market and the Metaverse, while mentioning how mainstream institutions and companies have also begun to take interest in our movements.

Today, we want to go a bit deeper into this subject and showcase just how heavily the supergiants of time past have actually invested into the “risky bet”, as many analysts used to call it, of the DeFi ecosystem.

But first, we need to point out that what once was just a trend or a very shaky investment ecosphere, has turned into a staple in many high-profile portfolios, thanks mainly to the utility brought by a decentralized system, and to the many integrations that made DeFi a valuable topic of interest both for retail investors, and heavily regulated institutions.

A big turning point in the market can be actually pinned to the 2020 explosion, in which the total value locked behind the DeFi ecosphere grew from 700 million USD to more than 20 Billion, with the number growing exponentially in 2021 to reach another peak of 200 billion USD.

And with entities like State Street, Fidelity and the Bank of New York starting to dip their toes into our beloved DeFi, we can definitely see how even the most prudent and traditional institutions are willing to bet on the continued growth of our market, a growth that for sure has its high and lows, but maintains it’s overall objective of creating a digital alternative to the heavily restricted mainstream ecosystem that is plagued by monopolies and monolithic institutions.

But, as it always happens, we need to remind that total anarchy isn’t sustainable, especially with growing ecosystems like ours, and as such, a certain level of regulation is inevitable: the crucial factors will need to stay in place, leaving us with a free, fair and secure market, but some restrictions will be needed to ensure that new entries aren’t totally screwed over by an unforgiving ecosystem.

The Devil is In the Details.

With this many huge players joining the field, it’s time to look at the big picture, and analyse who’s actually in for the money, who’s in to grow the ecosystem, and who’s in for both.

Starting from someone hated and beloved by many in the field, we have Elon Musk, and PayPal, which announced in January that is thinking about the launch of their own Stable Coin, meaning that outside of his own plays on Twitter, Musk is also thinking about what actually the digital market may bring to his various holdings, and is something that once again confirms the long term capabilities of the DeFi market.

Coming closer to the Metaverse field and all of its intricacies we have Mark Zuckerberg with his investment plans, his own personal take on this new digital reality, and the copious amount of money he is throwing at this technology.

The Big Z himself said that he plans to invest heavily in his own company’s metaverse ambition, even if that means losing significant amounts of money on the project in the next three to five years. With our resident robotic lizard basically signing a blank paycheck to his engineers, we can safely assume that the growth of the Metaverse won’t show any sign of stopping in the future and that what is now a market in its infancy stages is set to blow up in the next decade or so.

Coming third in our list of monoliths joining the fray, we have youtube and its plans to expand monetization for its creators.

We have seen many game houses and fashion companies looking at the NFT market and loudly proceeding to bumble their way into this profitable niche, but when YT says that they are going to branch into nonfungible tokens, we can stay assured that what many called a trend is here to stay and grow.

By announcing their plan to introduce NFTs as a feature in their creator tool, YouTube is basically opening up an entire new market for this technology, a market that doesn’t rely on any currently operating enterprise in the DeFi world, but is instead funded on the back of a giant entity that is basically saying “ this market is very promising, let’s get our own share of the pie”.

And while this take may seem a bit superficial, we want to remember that smart money has always moved in the right direction for a reason and that while we are currently in a big bear phase, the next time a bull run hits the preparations made now will begin to pay huge dividends.

Staying on topic, we can also point out the various NFTs investments made by the Gaming and Fashion world.

We can look at Nike with their NIkeland’s partnership with Roblox, generating more than one billion USD alone, followed by D&G and its 26.5 million investment, and all the other high apparel companies: Tiffany&Co, Gucci, Adidas and Lacoste, all with investments and revenues in the million dollars range joined the NFT bandwagon and are still looking for more in this market, both in the Digital ecosphere and in the Metaverse.

As for the Gaming world, we have something of a split here: GamiFi alone is a huge part of the current DeFi infotainment landscape, and what we are looking at right now instead are traditional entities, like Square Enix partnering with Enjin, looking to create a new niche for their own userbase.

And in this particular case, not everyone is happy: while the numbers don’t lie, and the profits are there, this introduction has caused a split in the Square Fanbase, with many looking at the NFTs made with distaste.

This may seem like a bad thing for the GamiFi ecosystem and for the NFT market as a whole, but we need to remember that we have yet to see something like a triple-A coming out of this particular ecosphere, meaning that while other markets are already primed and ready to take advantage of the potential of non-fungible tokens, the gaming market looking for nice flashy graphics, convoluted storylines and Elden Ring levels of quality has yet to find it’s darling in the DeFi space.

This just means that the first triple-A coming out of our beloved GamiFi scene will be a huge pivot for the whole market, unlocking yet another layer of possibilities for developers and IPs all around the world.

Just like we previously mentioned, the big picture is there, the details are there, and the results are clear: we are here to stay, we are here to grow, and we are here to explode in the future. Nothing short of total economical collapse will bring DeFi down, and we would like to point out that in this particular case the traditional market would probably be the first to fall.

We are at a turning point for our century, and looking at the future, while difficult and somewhat worrying, also means embracing the beauty of what humanity is achieving, be it a new rover on mars, immensely enhanced space pictures provided by Webb, or a new digital revolution in which everyone can participate.

And so, the Synapse Network is also proud of its achievement and its vision, forecasting long ago the role that institutionalized finance would have had in the DeFi space, and trying to bring as much value as possible to all of the Synapse community members.

With the tide changing, we are also bringing up new features, new tools, new rewards and much more, so, as always, stay tuned to all of our media, like Twitter, Telegram and Medium to never miss an update, and to always stay on top of the opportunities that we provide to all of our users.

About Synapse Network

Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.

Website
Twitter
Telegram Announcement Channel
Telegram Global Group
Github
Youtube
Linkedin

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store