A Look at Consumer Crypto Over the Years
When blockchain technology was first introduced, it was primarily a financial and technical concept. People initially believed that blockchains would be used for things like online payments and financial investments. While crypto certainly has financial and technological applications, there has also been a huge amount of growth in other sectors. Research shows that one of the leading uses for crypto is actually consumer goods. If you're interested in keeping up-to-date with crypto trends, explore this guide to learn about the rise of consumer crypto.
Key Takeaways:
Consumer crypto is an industry that involves incorporating blockchain technology into consumer goods.
Examples of consumer crypto range from NFT-branded collections for sneakers to coffee rewards programs that use blockchain tokens.
What Is Consumer Crypto?
Consumer crypto is an industry that involves incorporating blockchain technology into consumer goods. Examples of consumer crypto can range from NFT-branded collections for sneakers to coffee rewards programs that use blockchain tokens.
The Rise of Consumer Crypto
Consumer crypto started back in 2014, when the crypto market first exploded, and began to really take off when the Ethereum blockchain released the technology for non-fungible tokens (NFTs) in 2017. While most people were focused on trading on crypto exchanges, businesses began taking note of NFTs’ potential. Early examples of consumer crypto include Overstock's Bitcoin integration in 2014, and the first-ever fashion NFT in 2019.
Since web3 technology became the next big thing of 2021, there’s been an explosion in consumer crypto. While it was previously a notable incident whenever a company released their crypto or blockchain features, now it's more unusual to have a big brand that doesn't have some sort of crypto tie-in. Countless leading brands — including Coca-Cola, adidas and McDonald's — have some sort of consumer crypto feature.
There are many factors contributing to this increase in consumer crypto:
Leading investment banks like Morgan Stanley started offering access to crypto investment funds in 2021.
Mastercard began allowing crypto transactions on its network in 2021.
Leading social media sites and search engines ended their ban on crypto advertisements in late 2021 to early 2022.
Ethereum's 2022 switch to proof of stake (PoS) consensus made cryptocurrency mining and validation much more eco-friendly.
Google Play announced in 2023 that it would allow apps with tokenized digital assets in its store.
The 2023 integration of the TON blockchain and Telegram messaging app made crypto far more accessible.
2024 EU regulations make it much easier for iPhone users to directly download apps from their creators.
What do all of these changes mean for the typical consumer? The rise of consumer crypto has allowed blockchain technology to be integrated into almost every aspect of daily life. People who were completely unaware of the cryptocurrency market 10 years ago now think nothing of playing a web3 game or using an app that stores their information as on-chain data. In addition to creating more profit-making opportunities for businesses, the seamless integration of consumer crypto has helped to increase crypto adoption.
Examples of Consumer Crypto
To get a better understanding of how consumer crypto has worked its way into everyday life, it's useful to take a look at some examples. The following examples demonstrate some ways that major brands have added blockchain technology to their products and services.
Starbucks Crypto Rewards Program
The Starbucks rewards program is a popular app that rewards people with points for purchasing beverages at Starbucks. Recently, the brand decided to add crypto options for its members. People can turn in their rewards points for NFTs or digital assets, and the convenient app lets them hold digital assets without needing a crypto wallet.
Coca-Cola NFTs
Of course, NFTs are one of the easiest ways to produce a consumer crypto. Countless food, fashion, technology and fitness companies have released their own lines of NFTs. Coca-Cola is a great example of how an NFT can become a great ad campaign: the company released a line of limited edition NFTs on International Friendship Day 2021 that celebrated togetherness and friendship. The auction winner also received a Smeg refrigerator full of Cokes.
Budweiser NFTs
Another great example of a branded NFT launch is the Budweiser NFT collection. The novel thing about this collection was that Budweiser went out of its way to make purchasing and holding an NFT easy. Instead of needing a crypto wallet, users could go to a URL on the Budweiser site and buy an NFT with either cryptocurrency or a credit card. Currently, this collection has a market capitalization of around $142,405 (51.96 ETH).
LK Bennett Crypto Cashback
Luxury fashion brand LK Bennett™ has launched a fun new program that offers cashback in the form of crypto. Customers who use the company's QR payment system receive 5% to 10% cashback Bitcoin on every purchase. This program is part of a collaboration with Mode, an open-banking payments platform.
adidas Exclusive Merch Drops
Sportswear/footwear giant adidas has chosen to combine cryptocurrency with physical products so its brand can appeal to both crypto fans and streetwear collectors. The company has offered an Into the Metaverse package that released an exclusive hoodie alongside a blockchain address. This allowed consumers to obtain both a rare adidas item and a rare digital collectible.
The Future of Crypto
Is consumer crypto likely to stick around? Industry experts predict huge growth in blockchain-based marketing and services. The blockchain business market is currently worth $6.63 billion, and is projected to reach $59 billion by 2030. As cryptocurrency adoption increases, there will be more ways for the cryptocurrency industry to incorporate itself into other parts of daily life. The consumer crypto field is especially likely to see growth in these fields.
Cryptocurrency Payments
One of the main trends to watch for is an increase in companies that accept Bitcoin and other digital assets. As cryptocurrency becomes a valid form of investment, there’s less concern about it retaining its worth. More and more businesses are starting to allow crypto as a payment option, and there's a real demand for more crypto integration in online payments.
Crypto as Entertainment
While consumer crypto does include fields like marketing and customer retention, the area with the biggest growth is the entertainment industry. Web3 gaming alone is predicted to generate $614 billion worth of revenue by 2030. Now that consumers have begun to realize how entertaining blockchain gaming and social media are, there's a lot of interest in designing new crypto entertainment products.
Improved Integration and Accessibility
Increasing numbers of businesses are discovering that the only thing stopping users from exploring crypto is technological insecurity. Many people see crypto wallets and other blockchain technology as confusing, which has kept them away from it. Businesses are beginning to solve this issue by focusing more on accessibility and ease of use. Modern consumer crypto is likely to lean away from high-tech mechanisms such as private crypto keys for crypto owners. Instead, more crypto companies are leaning toward account-driven technology, which users are familiar with from Web 2.0 design.
The Bottom Line
Consumer crypto provides an exciting new way to explore applications of crypto ownership. By turning crypto tokens into game items, consumer reward points and other features, brands can easily incorporate blockchain technology into their business. Ultimately, the rise of consumer crypto is a highly promising sign for the blockchain industry — and in addition to increasing crypto adoption, the added utility for coins may help to stem some issues with price volatility.
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