Gate.io CEO Highlights Transformative Times Ahead For Crypto Sector During Asia Blockchain Summit 2024

Published: August 08, 2024 at 5:48 am Updated: August 08, 2024 at 5:48 am

Edited and fact-checked:
August 08, 2024 at 5:48 am

In Brief

CEO of Gate.io, Dr. Han Lin, delivered an insightful speech at the Asia Blockchain Summit 2024, discussing the evolution of the crypto sector.

CEO of cryptocurrency exchange Gate.io, Dr. Han Lin, delivered an insightful presentation at the Asia Blockchain Summit 2024, discussing the evolution of the cryptocurrency industry. In his speech, he reviewed the current state of the sector, noting that despite the growth, there is still considerable potential for further development.

In his presentation, Dr. Han Lin highlighted the improvements and technological advancements in the sector over time, which have enhanced the efficiency of blockchain technology. He further delved to examine the evolution of cryptocurrencies across various aspects, including their launch, tokens, exchanges, trading platforms, trading volume, market capitalization, blockchain development, and user engagement.

Initially, Bitcoin was mined using computers, and this approach was later adopted by altcoins. Subsequently, blockchain projects began using ICOs, which initiated a new era of cryptocurrency fundraising. This was followed by IEOs, which boosted credibility through established exchanges, and IDOs, which enabled projects to launch directly on decentralized exchanges. All these stages facilitated the project’s launches during that period. Dr. Han Lin observed a growing trend towards community-driven launches within the cryptocurrency industry at present. He noted that memecoins, for example, have gained traction and engagement due to their strong reliance on community support and viral marketing. He also pointed out that ICO launches have decreased as the industry moves towards community-centric approaches such as airdrops.

Before 2017, the primary focus was on BTC and ETH tokens. This shifted towards stablecoins, followed by a rise in the popularity of centralized exchange (CEX) tokens. In 2020, DeFi gained prominence, and in 2022, GameFi emerged as another trend. Additionally, there has been an increasing number of tokens launched each year.

The CEO of Gate.io continued by saying that trading platforms are currently providing security and liquidity to millions of users worldwide. He noted that Solana and Base have become popular choices for launching new tokens due to their cost-efficiency. Dr. Han Lin also mentioned that industry veterans remember Mt. Gox cryptocurrency exchange launch and subsequent hack, as well as the rise and fall of another platform, FTX. According to him, prior to 2018, launching a CEX was relatively inexpensive, but increased competition and higher entry barriers since then have made it more difficult. In contrast, the decentralized exchange (DEX) sector remains more accessible, with lower costs associated with launching a DEX. Although the market share of DEXs compared to CEXs is still relatively small, it is expanding. CEXs continue to dominate the market, holding a larger share of the overall trading volume.

Dr. Han Lin Highlights Market Trends: BTC’s Growth, Solana’s Ambitions, And Fast Increase In Cryptocurrency Users

Dr. Han Lin noted that trading volume for coins outside the top 10 at present is diminishing, as most trading activity is concentrated in the leading cryptocurrencies. He advised caution to those investing in smaller coins, warning that they may face liquidity challenges if they need to sell. Overall, trading volume remains heavily concentrated in BTC, ETH, and stablecoins.

Discussing the current state of market capitalization, Dr. Han Lin noted that Bitcoin’s market capitalization is nearing that of Facebook. He projected that Bitcoin could surpass Facebook’s market capitalization within the next one to two years. While those of Bitcoin declined from 2022 to 2023 due to the bear market, it has been increasing this year. Notably, despite fluctuations, Bitcoin continues to dominate, accounting for over 50% of the total cryptocurrency market capitalization.

Additionally, Dr. Han Lin pointed out that Solana is currently leading in the blockchain space and aims to surpass Ethereum as the most popular blockchain. However, Ethereum still maintains the highest trading volume and total value locked (TVL) on DEXs and has the most active developer community.

Dr. Han Lin’s presentation also observed that while the number of internet users has grown over the past two decades, the rate of growth for cryptocurrency users has been even faster. He noted that there were only 1 million cryptocurrency users 11 years ago, but now, cryptocurrency is widely recognized, with over 500 million people considered active users.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Alisa Davidson