Token2049 Singapore: Key Takeaways from the Future of Crypto and DeFi

Attending Token2049 in Singapore was an illuminating experience for anyone involved in crypto, blockchain, or decentralized finance (DeFi). The conversations, debates, and innovative ideas shared across the event provide insight into the rapidly evolving landscape of the digital economy.

At Token2049 Singapore, the DeHealth team had the opportunity to present our cutting-edge blockchain protocol designed to empower users with full control over their medical data. Our decentralized storage solution ensures that users can securely store, access, and manage their health information while maintaining complete ownership and privacy. By utilizing private keys, our technology not only guarantees data confidentiality but also enables seamless integration with eHealth applications. With this protocol, we aim to set a new industry standard for data security and user control, paving the way for widespread adoption in the healthcare sector.

In this article, I’ll break down some of the most impactful themes and conclusions from the conference—particularly in regard to the challenges and opportunities facing both public and private markets and the key takeaways that all innovators in this space need to be aware of.

The Shift from Public to Private Markets

One of the most profound insights from Token2049 was Santiago R Santos’s assertion that “there’s little money in public markets, but plenty in private ones.” It’s a sentiment that reflects the current state of the crypto sector, where early-stage venture capital (VC) investment is robust, but liquidity in public markets is increasingly scarce. This imbalance leads to inflated valuations in early rounds that deflate quickly upon token unlocks and release to the public.

The challenge now is to stimulate liquidity in public markets, but the strategies being used—primarily through increasing user activity and total value locked (TVL)—are short-term solutions. As we’ve seen with airdrops, meme coins, and token-based incentives, these mechanisms can initially draw in users, but they fail to establish long-term sustainability. Eventually, projects fall into a “death spiral,” especially when driven by unsustainable APY (annual percentage yield) races.

Crypto: The Next Evolution of Financial Instruments

There’s a prevailing belief that crypto is pushing the boundaries of financial efficiency at a “supra-national” level. Similar to how developed countries have succeeded by creating transparent systems of property rights that accelerate capital markets, crypto projects are building autonomous systems of digital ownership that expand capital markets for online assets—everything from digital currency to art and intellectual property.

These projects are also developing infrastructure that can function independently from state-level risks. Layer-1 (L1) and Layer-2 (L2) networks with varying balances of transparency and privacy are solving different business problems. Simultaneously, bridges, wallets, and decentralized finance (DeFi) infrastructures aim to scale and simplify user experiences while attempting to address the growing market fragmentation.

The “East vs. West” Divide in Crypto Projects

One fascinating theme at Token2049 was the cultural and operational divide between crypto projects originating in the West versus those in the East. Western projects tend to be tech-heavy but struggle with user adoption, whereas 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.

One interesting case is the growing trend around Telegram Mini Apps (TMA), which allow the release of meme coins and other high-traffic, low-tech initiatives in the Eastern market. While this strategy brings millions of users, the sustainability of these users—who are often chasing quick financial rewards—is questionable.

The Rise of Real-World Assets (RWA) in Crypto

Another hot topic at Token2049 was the rise of real-world assets (RWA) in the crypto space. Despite stablecoins being the most practical RWA use case (with 75% of daily transactions on the crypto market linked to them), the potential for tokenizing real-world assets like treasury bills and commercial obligations is massive. Yet, legal and regulatory hurdles remain significant barriers to scaling this segment.

Privacy vs. Transparency: An Ongoing Debate

A major point of contention at the conference was the balance between privacy and transparency in blockchain. Representatives from projects like Arbitrum, Solana, and Partisia agreed that it’s nearly impossible to fully combine both. You’re either private and non-transparent (which introduces regulatory risk, as we’ve seen 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 sector. Liquidity is being split 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—particularly around security and liquidity.

The DeFi Renaissance

DeFi projects were some of the most discussed at Token2049. Despite challenges around TVL (Total Value Locked) and yield generation, DeFi remains one of the few segments within crypto where real business models, internal economies, and decentralization are actively developing. However, these projects are also starting to position themselves more like 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

Lastly, much attention was paid to the future of Ethereum and Solana. Ethereum’s growth continues, but liquidity and fees are being siphoned off to Layer 2s, which are now essential to the network’s future. Solana, on the other hand, is advancing rapidly, attracting both mass users and corporate players like PayPal.

Both ecosystems have their strengths—Ethereum’s being its established user base and developer support, while Solana is faster, cheaper, and has the potential to scale more broadly. How these platforms evolve will play a key role in shaping the broader crypto landscape over the next few years.

As we continue to monitor the development of crypto, DeFi, and tokenization, the key themes from Token2049 Singapore highlight the necessity for both innovation and sustainability. Crypto is no longer just about creating technology for the sake of technology. The focus is shifting toward building practical, scalable systems that can integrate into the global financial ecosystem, all while addressing the unique challenges of privacy, transparency, and regulation.

It’s an exciting time to be at the forefront of this transformation!