The energy at Mainnet, the annual Web3 gathering in New York, was notably different from the vibrant buzz of Token2049 in Singapore last month or the Bitcoin Conference in Nashville the month before. But that’s a good thing. Mainnet has earned its place in the event-driven Web3 calendar by bringing a sharper focus on enterprise adoption and bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi), all while keeping the technology of blockchain at the forefront.
After returning to Miami, I felt encouraged by what I saw. Two key takeaways stood out, signaling strong growth potential—even if the most bullish in the industry may have hoped for a quicker path to the moon.
Regulation: A Shift in the Right Direction
One of the main themes across the event was regulation. Major players like EY, BNY Mellon, Citi, and Fidelity all emphasized that dialogue with U.S. regulators has become much more productive in recent months. There’s a growing sense that a clearer, compliant path forward for crypto is taking shape, with the political sentiment improving regardless of who wins the White House next year. This shift aligns with what I wrote in my Newsweek column back in August, where I noted the expanding Overton window for crypto discussions.
However, it’s important to temper expectations. Companies that have based their operations offshore may not find a warm reception just yet. The strategic advantage currently lies with those who have spent years navigating U.S. compliance, even in the face of challenging regulatory conditions. It could take years for offshore companies to regain favor. EY’s Paul Brody, in particular, articulated this reality well.
Liquidity: It’s Coming, But Don’t Expect a Frenzy
On the liquidity front, the lower interest-rate environment is already making waves, and more liquidity is expected to follow. While geopolitical instability or election uncertainty may temporarily rattle the markets, the overall trend is optimistic. But after past false starts, the mood was one of cautious optimism.
We are likely entering a bull market, but it won’t be the sky-high climbs of past cycles. That’s not necessarily a bad thing. The bull runs of previous years exposed some of the industry’s worst excesses. This time, a more moderate but sustained growth pattern may be exactly what the industry needs to mature and stabilize.
Conclusion: Slow but Steady Wins the Race
Mainnet 2024 offered a grounded and pragmatic view of the future of crypto. Regulation and liquidity are shaping up to be key drivers of growth, albeit in a measured way. While there may not be a rocket ship heading to the moon just yet, the slow and steady progress of the past few months gives reason to be optimistic about the future of Web3.