X @Bankless

Emerging Crypto Sectors - Restaking networks enable Ethereum's staked ETH to secure new protocols, lowering barriers to launch innovative applications [1] - DeFi is blending into traditional finance with consumer-friendly tools, potentially leading to user adoption without realizing it's crypto [2] - Tokenizing assets like Treasuries and real estate turns static assets into programmable building blocks tradable in crypto markets [3] - Zero-knowledge proofs enable scalable, private applications, offering throughput and privacy Web2 can't match [5] - Decentralized social platforms allow creators to control content and rewards, shifting power away from traditional platforms [5][6] Opportunities - Shared security could spawn industries like decentralized compute or AI training [3] - RWAs could embed crypto in global finance, fueling stablecoin yields and deepening liquidity [3][7] - Social apps grow regardless of market cycles, and Web2's creator economy struggles create openings [8] - Ethereum endorses ZK for scaling, and falling proving costs make ZK practical [8] - Traditional finance's scandals create openings for DeFi [4] Challenges - No standout AVS apps yet, and early investment outpaces usage in restaking [3] - DeFi remains unfamiliar to most consumers, and geographic restrictions limit access [4] - Regulatory complexity slows the growth of RWAs, and underlying markets lack inherent liquidity [7] - Competing ZK standards create uncertainty, and the "ZK moment" remains unrealized [8] - Users resist switching from platforms like Instagram, and token-driven models risk speculative volatility in decentralized social [8]