The impending revolution of crypto applications integrated with social media platforms and messaging services is set to transform the landscape of crypto adoption, according to seasoned investor and researcher Chris Burniske. However, not every blockchain team will benefit equally from this shift, Burniske warns.

Crypto Apps to Skyrocket in Adoption Next Year

Chris Burniske, a partner at Placeholder and former head of ARK Invest's crypto unit, predicts that in 2025, crypto apps will onboard tens to hundreds of millions of new users, reminiscent of the rapid adoption seen with OpenAI's ChatGPT. This forecast, shared on X (formerly Twitter), suggests that the influx of new users will occur much faster than in previous adoption cycles.

Burniske emphasizes that crypto's integration with social media platforms provides a unique advantage. As crypto becomes a financialized infrastructure intertwined with the social media phenomenon, the influx of users will be so substantial that the industry will quickly shift from asking "Where is the adoption?" to dealing with "Too much adoption." This surge will likely leave developers scrambling to manage the sudden increase in demand.

Scalability Challenges on the Horizon

The rapid adoption will exacerbate scalability issues for both Layer 1 (L1) and Layer 2 (L2) blockchains. Burniske highlights that many current blockchain environments are ill-equipped to handle the potential surge in users. Consequently, the industry should brace for unexpected challenges and prepare accordingly.

Chain Abstraction and the Role of Social Networks

Illia Polosukhin, founder of NEAR, supports Burniske's predictions, noting that the synergy between social networks and crypto apps has already driven the growth of new Web3 products. He cites the example of NEAR's decentralized validator network, which reached two million daily users within 10 days of integrating with Telegram.

Polosukhin attributes this success to the concept of chain abstraction, which simplifies the user experience and enhances scalability. NEAR has been collaborating with Polygon Labs in this area since mid-January 2024, aiming to further streamline the integration of blockchain technology with social platforms.

Looking Ahead

As the crypto industry braces for this anticipated wave of adoption, it is clear that the interplay between social media and blockchain technology will be a driving force. Developers and blockchain teams must prepare for scalability challenges and be ready to adapt to the rapidly changing landscape. The next few years promise to be transformative for crypto, with the potential for unprecedented growth and mainstream adoption.