Attending Token2049 in Singapore was an enlightening experience for anyone involved in crypto, blockchain, or decentralized finance (DeFi). The conversations, debates and innovative ideas shared throughout the event provide insight into the rapidly evolving landscape of the digital economy.
At Token2049 Singapore, the DeHealth team had the opportunity to showcase our cutting-edge blockchain protocol designed to enable users to have full control over their medical data. Our decentralized storage solution ensures that users can securely store, access and manage their health information while maintaining full ownership and confidentiality. By using private keys, our technology not only ensures data privacy, but also enables seamless integration with e-health applications. With this protocol, we aim to establish a new industry standard in data security and user control, paving the way for widespread adoption in the healthcare industry.
In this article, I will detail some of the most notable themes and conclusions of the conference, particularly in relation to the challenges and opportunities facing public and private markets, as well as the key takeaways from which all innovators in this area need to be aware. .
The transition from public to private markets
One of Token2049’s most profound insights was Santiago R Santos’ assertion that “there is little money in public markets, but a lot in private markets.” It’s a sentiment that reflects the current state of the crypto industry, where early-stage venture capital (VC) investments are robust, but liquidity in public markets is increasingly scarce. This imbalance leads to inflated valuations in early rounds that quickly deflate when tokens are unlocked and released to the public.
The challenge now is to boost liquidity in public markets, but the strategies used – primarily through increased user activity and total value locked (TVL) – are short-term solutions. As we have seen with airdrops, meme coins, and token-based incentives, these mechanisms may initially attract users, but they fail to establish long-term sustainability. Eventually, projects fall into a “death spiral,” especially when they are driven by unsustainable races to APY (annual percentage yield).
Crypto: the next evolution of financial instruments
There is a prevailing belief that crypto pushes the boundaries of financial efficiency to a “supranational” level. In the same way that developed countries have succeeded in creating transparent property rights systems that accelerate capital markets, crypto projects are building self-sustaining digital property systems that expand capital markets for online assets, from digital currency to art and intellectual property.
These projects also develop infrastructure capable of operating independent of state-level risks. Layer 1 (L1) and Layer 2 (L2) networks with varying balances of transparency and privacy solve different business problems. Simultaneously, decentralized finance (DeFi) bridges, wallets, and infrastructure aim to scale and simplify user experiences while attempting to address increasing market fragmentation.
The “East vs. West” divide in crypto projects
One of the fascinating themes of Token2049 was the cultural and operational divide between crypto projects originating in the West and those in the East. Western projects tend to be high-tech but struggle with user adoption, while Eastern projects attract massive user bases but often lack cutting-edge technological innovation. As a result, both sides remain somewhat insular, each orbiting within its own ecosystem.
An interesting case is the growing trend around Telegram Mini Apps (TMA), which enable coin release and other high-traffic, low-tech initiatives in the eastern market. Although this strategy attracts millions of users, the sustainability of these users, who often seek quick financial rewards, is questionable.
The Rise of Real World Assets (RWA) in Crypto
Another hot topic during Token2049 was the rise of real-world assets (RWA) in the crypto space. While stablecoins are the most practical RWA use case (with 75% of daily crypto market transactions tied to them), the potential for tokenizing real-world assets like Treasuries and commercial obligations is enormous. However, legal and regulatory obstacles remain significant obstacles to the development of this segment.
Confidentiality or transparency: an ongoing debate
One of the main points of contention at the conference was the balance between privacy and transparency in blockchain. Representatives of projects like Arbitrum, Solana and Partisia agreed that it was almost impossible to fully combine the two. You are either private and non-transparent (which introduces regulatory risk, as we saw with Tornado Cash), or transparent and therefore vulnerable to regulation targeting project founders.
The growing fragmentation of crypto infrastructure
The rapid growth of L1 and L2 networks has led to significant fragmentation, which has become a critical challenge for the industry. Liquidity is spread across multiple platforms, making it difficult for users to navigate different networks without complex bridges, wallets, and protocols. This not only makes the user experience more cumbersome, but also introduces additional risks, including security and liquidity.
The DeFi Renaissance
DeFi projects were among the most discussed during Token2049. Despite challenges with TVL (Total Value Locked) and yield generation, DeFi remains one of the few segments of crypto where true business models, internal economies, and decentralization are actively developing. However, these projects are also starting to position themselves more as centralized finance (CeFi) entities to avoid regulatory scrutiny, which could eventually force many DeFi protocols to adopt more traditional financial obligations.
The future of Ethereum and Solana
Finally, a lot of attention has been paid to the future of Ethereum and Solana. Ethereum’s growth continues, but liquidity and fees are being siphoned off to Layer 2s, now critical to the future of the network. Solana, on the other hand, is growing quickly, attracting both mass users and companies like PayPal.
Both ecosystems have their strengths: Ethereum is its established user base and developer support, while Solana is faster, cheaper, and has the potential to scale more widely. How these platforms evolve will play a key role in shaping the broader crypto landscape over the coming years.
As we continue to monitor the development of crypto, DeFi and tokenization, the key themes of Token2049 Singapore highlight the need for both innovation and sustainability. Cryptography is no longer just about creating technology for technology’s sake. The focus now is on creating practical, scalable systems that can integrate with the global financial ecosystem, while addressing the unique challenges of privacy, transparency and regulation.
It’s an exciting time to be at the forefront of this transformation!
