In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably

Here I will just explain my thoughts on which applications have Product-Market-Fit.

Storage of Value (an asset that maintains or increases its value rather than depreciating)

Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks to the EIP-1559 update, ETH is now a deflationary asset with better Tokenomics than BTC. All the other L1s are far away from being used as Storage of Value, but a few are making progress in this direction.

Stablecoins (payments)

Stablecoins are the second-strongest product-market fit. Today, $20B in stablecoins is settled on Ethereum & L2s, and $10B in USDT on Tron every single day. This is a very significant amount and a sign of a maturing industry. The total market cap of stablecoins is $120B, but 95% of them are centralized and the regulation around them is not clear.

RWA on chain and synthetic assets:
People are using stablecoins on-chain because it is harder and costly to get them off-chain. Similarly, stocks and indexes put on-chain, will make them easier to access. Killer use case the strongest player in this field is Synthetix, with a monthly Total Value Locked (TVL) in billions of dollars.

Dexs
The daily trading volume of decentralized exchanges (DEXs) is in the billions, which is impressive. Most of this trading can be attributed to speculation. Uniswap has over 70% market dominance, followed by Pancake Swap.

Lend and Borrow
Decentralized finance (DeFi) lending and borrowing is dominated by Aave, followed by JustLend and Compound. Aave is deployed on multiple chains, while JustLend is deployed only on Tron 1 and has very close TVL which is impressive.

Prediction Markets
More Global, more liquidity, more useful: Blockchain-based markets can operate globally, unrestricted by geographical boundaries. This global reach increases the liquidity of the market, as it allows a larger number of participants to trade. More liquidity makes the market more useful, as it improves price discovery and reduces the impact of individual trades on the overall market price.

Collective intelligence tool: Blockchain-based markets can serve as a collective intelligence tool. They aggregate the beliefs and predictions of a diverse group of participants, reflecting the collective opinion on the likelihood of future events3.

Lower fee: Blockchain-based markets can operate with lower fees than traditional markets.

Current market leader in the space PolyMarket, Gnosis Protocol v1, Azuro.

Identity & social (ENS)

Exciting applications in this space:

• Proof of personhood: proving that an agent is human, and guaranteeing that each human can only obtain one identity through the proof of personhood system. This is a hugely important special case. Gitcoin Passport is an example of this.

• Sign In With Ethereum (SIWE): a standard that allows users to log into (traditional) websites in much the same way that they can use Google or Facebook accounts to log into websites today. You can learn more about it here.

• ENS: the most used name service with 743K owners. It establishes a consensus that a particular human-readable name can be used to refer to a particular address. You can visit their website here.

• Proof of Attendance Protocol (POAP): This is a general-purpose protocol for issuing tokens that represent attestations: have you completed an educational course? Have you attended an event? Have you met a particular person? POAPs could be used both as an ingredient in a proof-of-personhood protocol and as a way to try to determine whether or not someone is a member of a particular community.

DePin

Establishing physical infrastructure is both financially burdensome and logistically challenging.

Cryptocurrency, on the other hand, provides a streamlined solution.
This digital approach offers scalability at an accelerated pace, significantly reducing the overall costs associated with infrastructure development while maintaining a high level of effectiveness. The networks like Filecoin, and Arweave community's success serves as a compelling testament to the efficiency of leveraging crypto-based solutions for building robust networks.

We keep wasting >90% of our time, capital, and resources on dead-end useless narratives in delusion.

Most protocols are destined to fail with no Users. Let's build products looking at the ground reality, with what people and organizations need and want. Decentralization is only useful if it improves consumer choice and experience sustainably.

In the end, that’s all that matters, good, sustainable applications that add value to the world. Decentralization may or may not be a useful feature - in most cases, it is not - and application developers must make prudent design choices accordingly.