Onchain Gacha Systems Spark Frenzy in Crypto Market

A new trend is emerging in the crypto space, centered around onchain 'gacha' systems. These NFT-based systems allow users to pay for randomly selected collectibles. Fake World Assets (FWAs) is a recent example of this trend, and it has quickly gained traction.

In just four days after its launch, FWAs became one of Ethereum's largest gas consumers by fees, with peak daily fees reaching about $1.53 million on July 25, according to DeFiLlama. This surge in activity was driven by the protocol's token incentive program and lottery-like gameplay.

However, some market participants are skeptical about the current demand for FWAs, suggesting that it may be largely driven by token rewards rather than sustained end-user desire. Simon Dedic, founder of Moonrock Capital, expressed this view, stating that the activity is targeted at 'crypto degens' seeking to gamble and speculate.

The core bet on FWAs is whether it can retain users once incentives fade and novelty wears off. If users continue spinning even after token rewards lessen, it would indicate that the system has found a retail use case. But if activity drops sharply, it may reinforce the view that the current wave is mostly speculation riding on incentives.