The rise of stablecoins as key infrastructure, the encryption industry shifts towards practical applications

A recent in-depth analysis report delves into the key trends of the TOKEN2049 Dubai conference, revealing that stablecoins are becoming the core infrastructure of the encryption industry, while the entire sector is gradually shifting from speculation to practical applications.

Key Points Overview

• Stablecoins have become a core component of the digital economy, demonstrating clear market demand and application prospects.
• Although artificial intelligence is a hot topic at the conference, there is a significant gap between the actual progress of implementation and market expectations.
• The encryption industry is entering a mature stage, shifting its focus from speculation to infrastructure construction and practical applications.

TOKEN2049: Industry Barometer

The TOKEN2049 Dubai conference once again showcased its status as a top global event in the encryption industry, attracting over 15,000 participants from more than 160 countries. The two-day conference featured a series of high-profile speeches and discussions, reflecting the evolution of market dynamics and the rise of emerging trends.

As an important forum in the industry, TOKEN2049 is regarded as a barometer for the future direction and narrative shifts in the Web3 market. The main content of this conference conducted a systematic review and in-depth analysis based on core themes, while capturing the changes in the overall priorities of the ecosystem, providing strategic insights for interpreting the potential directions of the industry's future.

Emerging Trends

The TOKEN2049 Dubai conference covered a wide range of blockchain topics, fully showcasing the evolution of industry priorities. Infrastructure-related topics accounted for the largest share ( 15.7% ), followed by artificial intelligence ( 11% ). Notably, the combined proportion of stablecoin ( 18.7% ) and real-world assets ( RWA, 5.5% ) has surpassed that of artificial intelligence, reflecting the growing market interest in blockchain applications with direct practical utility.

In the DeFi discussion, industry perspectives are more mature compared to previous years. Rather than focusing on replacing traditional finance, the emphasis of the discussion has shifted to how decentralized systems can complement existing institutions. This is also in line with the broader industry's trend towards regulatory involvement and institutional adoption.

The attention towards the Solana ecosystem has significantly increased. Despite suffering major setbacks previously, the Solana ecosystem has successfully rebounded, and its presence on stage and the heat of technical discussions have even surpassed that of Ethereum. This shift in ecological dynamics is worth close attention, as it could become a turning point in the Layer 1 blockchain landscape.

Overall, the main stage of the conference showcased a more down-to-earth and pragmatic way of thinking. The core discussions revolved around the drivers of long-term growth, including regulation, financial integration, infrastructure development, and artificial intelligence.

Deep Changes

stablecoin has become infrastructure

Stablecoins have been established as the core infrastructure of the digital economy and are seen as a key opportunity in the Web3 space. An increasing number of opinions suggest that stablecoin transactions will expand from on-chain activities into the real economy, potentially forming a market worth trillions of dollars.

Industry focus has shifted from simple integration to control over the payment layer. Web3 projects and institutions are ramping up efforts to secure a leadership position in the stablecoin tech stack. Some ecosystems are accelerating their establishment as foundational settlement platforms, with strategies covering wallet development, payment infrastructure construction, and institutional adoption.

AI in the encryption field: The gap between prospects and reality

In discussions about AI, a cautious tone is generally presented. Many participants pointed out that the gap between market enthusiasm and the current maturity of technological development is widening. Some AI agent projects have been criticized for lacking clear use cases, deepening the perception that much of the activity in this field remains speculative.

Despite these concerns, there remains a long-term confidence in the potential role of Web3 in the AI market. Concepts such as decentralized AI computing and open-source agent frameworks are seen as having real potential. These are viewed as long-term opportunities rather than short-term trends, and are expected to gradually gain attention once the current market tumult settles down.

Node Sales Frenzy

A notable trend at the conference is the increasing attention on node sales related to physical devices. By opening node operations to a broader audience, these initiatives are seen as an important step towards greater decentralization and the redistribution of participation opportunities.

However, some participants are skeptical about this trend. They question whether these sales are merely retail financing strategies disguised as ecosystem participation. Criticism mainly focuses on the exaggerated reward structures, unclear token models, and the lack of meaningful network activity to support the sales.

Technology is no longer the only chip.

The gap between technological advancement and market adoption is continuing to widen. Even teams with strong technical capabilities admit that relying solely on ongoing research is insufficient to attract market interest. Many technically mature protocols have failed to gain user attention, while some simple coins launched through platforms are able to consistently generate stable trading volumes.

In response, industry participants are shifting their focus from research to execution. An increasing amount of effort is being concentrated on developing strategic market entry plans, understanding liquidity flows, establishing exchange relationships, and designing user-friendly token models. While technical excellence remains important, the ability to create meaningful value will be limited without an effective distribution strategy.

Key Announcement

• A certain stablecoin issuer plans to launch a new US dollar stablecoin compliant with US regulations, expected to be released between 2025 and 2026.

• A trading platform has launched a self-custody encryption payment application, providing zero-fee transfer functionality and enabling wallet recovery through key splitting technology.

• Zodia Custody announced the acquisition of Tungsten Custody to establish a regulated business base in the UAE. At the same time, it announced a new custody partnership with Bybit.

• Mesh has showcased its new integration with Apple Pay, allowing users to pay with encryption while merchants receive stablecoin.

• The MGX Fund in Abu Dhabi completed a $2 billion investment in a certain trading platform through the stablecoin USD1.

• MEXC Ventures announced the establishment of a $300 million fund, focusing on investments in modular chains, ZK-rollups, and self-custody solutions.

• Former PayPal executive David Marcus launched Spark, a native protocol based on the Bitcoin Lightning Network.

These announcements are highly aligned with the theme of the conference. Stablecoins remain a core topic, and infrastructure development is another major focus. The evolution of Bitcoin's functionality has also been emphasized, further driving discussions about the broader application potential of Bitcoin.

Industry Transformation

This conference clearly demonstrated the transformation of the encryption industry - shifting focus from speculative enthusiasm to practicality and infrastructure development. Three key thematic directions have emerged:

1. Stablecoins transcend narratives and become the infrastructure of the digital economy.
2. The enthusiasm for AI is high, but market sentiment is becoming cautious.
3. Dubai consolidates its position as a Web3 regulatory and capital hub

The era of idealistic experimentation is giving way to a phase of pragmatic execution. The Web3 ecosystem has now entered a stage that relies on infrastructure development, system integration, and delivery capabilities.

Although the attention economy remains an important factor, the market is no longer just paying for conceptual innovations. Stakeholders now expect practical applications and clear value propositions. This shift marks a broader maturity of the entire ecosystem, paving the way for more stable and long-term development — it can be considered the arrival of the "urbanization" era of Web3.