3 theses that will drive Ethereum and Bitcoin up in the next bull market
Since 2021, the ecosystem has increasingly started to store a large part of this data in the form of **fungible tokens**, NFTs, and timestamps on the **blockchain**, which acts as a data repository in this context.
Ethereum and Bitcoin’s Future Growth
This shift represents a critical perspective that is set to guide three theses for the upcoming bull market. To fully grasp these theses, it is crucial to understand that everything is data. Money is data. Your engagement with a brand is data. Your **credentials are data**. The ticket for your favorite show is data.
After 2021, we entered an era in cryptocurrency where people stopped talking only about financial decentralization and started to broadly discuss the tokenization of everything, thanks in part to nonfungible tokens (NFTs).
Thesis 1: Ordinals and Similar Protocols
**Ordinals** and similar protocols continue to grow, while Bitcoin becomes a network for multi-assets (or multiple data types). In January 2023, Casey Rodamor publicly released the **Ordinals protocol**, which, in short, allows for the permanent insertion of any file type into the **Bitcoin blockchain**.
In less than a year, the community has already conducted experiments in which music, artwork, journalistic articles, and even video games are being inscribed on the world’s leading blockchain.
More than just a technical protocol, a culture and a mindset have been created where more and more builders see Bitcoin as a canvas for the creation of other projects and applications, and nothing can stop well-established cultural movements.
Thesis 2: Layer-2 Blockchains
**Layer-2 blockchains** — designed to scale layer-1 blockchains — will be crucial for the next bull market. Those who were active during the 2021 bull market recall that $50 for a transaction fee on **Ethereum** was almost the norm, not to mention the spikes, like during the minting of the Otherside NFTs by Yuga Labs, where users paid up to six Ether (ETH) per transaction.
Now, with all the lessons learned and the calm that has settled in with the bear market, it’s clear that the mentality for building is much more mature, and the ‘jobs to be done’ by blockchains have become much clearer to those who are building.
Thesis 3: Abstraction Solutions
**Abstraction solutions** will be the main gateway and retention mechanism for users and large traditional companies on Web3. The big issue is that with the tokenization of everything, in some cases decentralization is more of a hindrance than a help.
Something that’s not often discussed is how important these abstraction solutions are for traditional companies to effectively join **Web3** too. Making it easier for builders to get started is also crucial.
Breaking down the blockchain journey to mainstream into four phases, we could say that the account abstraction solutions, along with the advancements mentioned in thesis two, will propel Web3 into its penultimate phase — with improved infrastructure, fewer technical builders and brands join the game, and the number of applications, projects, and use cases multiply, attracting mainstream attention.
Lugui Tillier is the chief commercial officer of Lumx Studios, a **Web3 studio** that counts BTG Pactual Bank, the largest investment bank in Latin America, among its investors. Lumx Studios has previous Web3 cases with Coca-Cola, AB InBev, Nestlé and Meta. The author holds investments related to the **Ordinals Protocol**, though none named in this article.
The Impact of the Three Theses on Ethereum and Bitcoin
It’s clear that the next bull market for **cryptocurrency** will be strongly influenced by these three theses. The tokenization of everything and the use of blockchain technology to store, share, and utilize data is paving the way for significant developments in **Ethereum** and **Bitcoin**.
With the growth of **protocols** like Ordinals and the emergence of **layer-2 blockchains** to scale transactions, the infrastructure supporting these major **cryptocurrencies** is becoming more robust and adaptable to mainstream usage. This scalability and improved infrastructure will inevitably attract greater mainstream attention, driving up the value of **Ethereum** and **Bitcoin**.
Additionally, the implementation of **abstraction solutions** will play a pivotal role in making the **crypto** universe more accessible and user-friendly, particularly for traditional companies looking to transition to **Web3**. By simplifying complex processes and reducing technical barriers, these solutions will facilitate the integration of businesses and the adoption of **cryptocurrency** by the everyday user.
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