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TOKEN 2049: Industry Steers Towards DeFi to Onboard Institutional Liquidity

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TOKEN2049 certainly lived up to its expectations as the industry leader conference as it pilots a narrative towards DeFi application.

The 7,000-attendee conference brought to light the collective sentiment of both VCs and blockchains, which are now pushing products to institutions to scale liquidity in the ecosystem.

DeFi is ahead of its skis with its functions relative to the liquidity in this space.Matthew Graham, CEO Sino Global Capital

The GameFi vertical was secondary to institutional DeFi, with overall sentiment supporting game studio models that monetized through in-game app purchases from highly polished mobile and PC games.

Venture capital bets hard on DeFi enterprise solutions

From the discussions on stage at TOKEN2049, VC appetite is shifting towards cybersecurity, infrastructure and enterprise solutions. The landscape for funding has seen VC sentiment take a preference for pickaxe web3 models equipped with B2B solutions to onboard institutions. DeFi has seen increased functionality over the recent months and is now ready to utilise its full potential and functionality that the ecosystem was built for.

DeFi was the clear star of the show at TOKEN2049, with enterprise solutions built to bridge both adoption and liquidity through yield generation models for institutional portfolios. On the B2C focus segment, yield aggregation, market making and decentralized exchange (DEX) solutions were also present to service current industry players.

GameFi growth

GameFi projects with polished visuals and fun, innovative gameplay (racing strategy game anyone?) are preparing for a Q4 launch. Games are gearing up for year-end market share slugfest, with a focus on mobile gameplay.

Blockhead spoke to seven projects at the conference, and each one said they were aiming to launch in the APAC market in December.

VC support here was for mobile games and AAA game studios riding the battle-tested web2 thesis of monetization through in-game app purchases.

New layer 1s, tooling and cybersecurity solutions enter the arena

Contender layer 1s such as Radix and Rubix have come out of the bear market woodwork to showcase promising unparalleled interoperable connection and scalable atomic composability capabilities, unseen before in prior blockchains.

These new blockchains are coming in hot onto the arena for liquidity as they each push for more institutional-friendly development and application on blockchains.

The shift in prioritising institutional onboarding had also triggered a wave of complementary tooling products in the space. There were various web3 versions of tradfi models ranging from cybersecurity to custodial services for DeFi. These were tooling models that aided institutional support for the pillars of DeFi AML, social identity KYC and smart contract tracing for tax reconciliation.

Related: After Two Days of TOKEN2049, Here’s What We’ve Learned