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Surviving the 2024-2025: Get ready for the Web3 Bull Run

Pavlo Karapinka; Nazar Didyk

01.08.2024

7 Min Read

You must be agile and ready for any market movement in a booming crypto market. With a decade of Web3 experience, here is what I expect and how to prepare for it.

Marketing in Web3 isn’t just about traffic or influencers. It’s about a solid foundation that’s ready for any market. Is your strategy ready?

What To Expect in 2024-2025

Let’s assume that 2024-2025 would be green years. Considering this and our experience with three crypto cycles, the Web3 market will be swamped with liquidity. It sounds like paradise, but it’s not.

 

Imagine you’re stranded in a desert and you know a rare rainstorm is coming. Would you just try to catch the rain with your hands, or would you use your resources to create a rain catcher using whatever materials you can find? In crypto, most aren’t even lifting a finger.

 

Projects tend to collapse when all that “bull run traffic” floods. Businesses simply cannot authorize the users, activity, and the market ask in any way.

 

You must be prepared for this boom. Prepare your marketing foundation, including community management, analytics, additional capacity, etc., because the number of results you can get in a limited time will change critically.

Challenges I See Coming

In a Web3 bear market, user/customer acquisition is the biggest challenge. But once you’ve acquired the user, they likely stay with you for some time, with a decent retention rate.

 

In a bull market, however, user acquisition costs peanuts. You can tweet your dick pick and get a few million users (like dogwifhat and pepe, which boomed even without a full-blown bull market). But keeping those acquired users becomes the challenge. Why is that? Competition is increasing.

 

The market becomes very competitive, and your users will start looking for a bright new thing to pour liquidity in. That’s when your focus needs to shift to retention mechanics, upselling, downselling, cross-selling, etc. to keep users from being chased by competitors’ USPs or features. To do this, it is essential to measure and understand your unit economics, focusing on metrics such as LTV and churn rate as critical factors.

 

Many projects go under simply because of overconfidence in a large user base. Just remember Bored Apes, or Step App. The move-to-earn narrative was booming, and their tokens were printing. BUT. You should remember, that while engaging users, try to think bout their maintenance and utilization.

 

Sure, some folks bought expensive kicks, that gave a buck back to the business. But did it save the Step App. Or the whole narrative? Check for yourself.

Exciting and essential, airdrops are one of the user acquisition strategies that have been prevalent over the last year and a half. But it won’t look the same in the future.

 

According to the principle of system entropy, systems are becoming increasingly complex, and the same story awaits us with airdrops. Airdrops will become more complicated and more effective, and the economics of airdrops will become more effective than, for example, the last StarkNet airdrop.

Most users received less than 100 tokens each, and only 1.1% of users who received token allocations retained them. StarkNet spent almost $100 million to acquire 519,282 users, about $200 per user. If we recalculate using retained users (those holding > 101 tokens), the cost per retained user would be $1,341.

It brought awareness, for sure. But with the fees on StarkNet as low as 0.005 USD/ transaction, the $1 300 CAC does not make any sense.

 

Accordingly, airdrops will change. They will become more retention focused with added mechanics and gamification, for example, giving several distributions, vesting the tokens etc.

The demand for skilled marketing personnel will skyrocket. A million competitors will be looking for good marketers, some willing to pay more, some less. They will get them, and if you don’t find a marketing specialist or agency in time, you’ll have to settle for the leftovers.

 

Find a marketing agency or CMO now. Hire and train them, rather than paying significantly more to get them later.

 

Make sure your marketing and community infrastructure is rock solid. That way, you have a better chance of surviving the liquidity flood. Good luck.

Essential Tips for the Bull Market

I fuck up a lot. And I learn a lot from it. Here is what you need to know before entering this bull market.

This doesn’t mean you shouldn’t launch an exchange if the narrative is now on RWA. You can still launch an exchange if it’s an exchange with some successful model with some unique PMF, features, etc.

 

But the point is that working with narratives significantly reduces the costs of all your processes. Please provide a good product with good features under the correct narrative, or overpay without PMF.

This often solves the user/customer acquisition problem.

 

Attracting multiple partnerships with key L1 and L2, meaningful exchanges, critical funds, and critical market makers can make up 80% of your community-building process and PR.

Influencers will remain relevant, but working with them will become more complicated because there are many ineffective influencers and fewer effective ones.

 

Hire agencies that use KOL marketing as a performance tool. Like Solus. For example, as in the good old 1inch case.

 

As for buying influencers out of a vending machine, that boat sailed in 2018.

Marketing in Web3 remains as fast as ever. Just check the news flow. But with the green market ahead, the speed will increase even more.

 

You must work day and night on your product because someone needs it today. Yet your product can face 1,000 competitors tomorrow, likely better than you, and you could be crushed in a matter of days.

 

Be flexible, be fast, and be great.

Conclusions

Marketing is often reduced to working with traffic or influencers, which is misleading af. Marketing is about positioning, promotion, partnerships, everything.

 

Build your marketing strategy. Read your competitors’ case studies and check their paths. Avoid their mistakes and repeat their success.

 

Want to go through this process easier and more reliably? Here’s a freebie for you — book a call with Solus Agency, we’ll help.

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