Crypto's Development Mirrors Early Internet Era, Says Polygon Co-Founder

According to Cointelegraph, the current state of cryptocurrency is comparable to the "America Online" (AOL) era of the internet in the late 1990s, characterized by a cumbersome user experience and limited use cases. Polygon co-founder Sandeep Nailwal highlighted this analogy, noting that the crypto industry is still in its early stages, akin to the dial-up era of the internet. Nailwal emphasized the need for advancements in several areas to enhance user experience, such as seamless fiat on- and off-ramps, key recovery solutions for custody, and the integration of hardware wallets into mobile devices. Nailwal remarked that the crypto industry is likely in a phase similar to 1998, suggesting it could take another 10 to 15 years for cryptocurrencies to reach their full potential. During the AOL days, the internet was primarily used for email and basic web browsing, with a high barrier to entry. Today, the internet has evolved to encompass the entire economy. Nailwal believes that the current focus of crypto on financial use cases, particularly market speculation, mirrors the early internet's limited functionality. He anticipates that once financial use cases are fully developed and widely adopted, cryptocurrencies will expand into alternative sectors such as decentralized social media, gaming, and other niche areas. Nailwal also pointed out that even the fundamental financial use case of cryptocurrencies has not been fully realized. A report from Bitcoin financial services company River, published in February 2025, revealed that only 4% of individuals worldwide own Bitcoin (BTC), the original cryptocurrency with the largest market cap. The report indicated that BTC has achieved only about 3% of its total adoption potential when considering institutions, the total addressable market, and proper portfolio allocations. This low percentage of BTC holders suggests that mass adoption of cryptocurrencies is still years away, and the industry remains in the early adopter phase of development.