The world of cryptocurrency is constantly evolving and changing. To stay ahead of the curve, it’s important to be aware of the latest trends. So, what should you be watching for in 2022? This blog post will discuss some of the top crypto trends to keep an eye on.
Let’s take a look at them.
The adoption of Bitcoin
The first trend has many pictures to go along with it. Although Bitcoin is still the most valuable cryptocurrency by market capitalization, its adoption rate as a payment for goods and services is not growing as fast as some experts had predicted. However, this isn’t necessarily bad news for Bitcoin.
An ‘unfavorable’ price environment means that more investors can increase demand significantly if they choose to purchase Bitcoin during these dips in price. Additionally, it is becoming apparent that Bitcoin may be better as a form of long-term storage of value rather than a payment system for everyday expenses. Bitcoin Trader is among the top trading platform you must use to earn huge returns.
The second trend is interesting because although blockchain technology provides the foundation for cryptocurrencies, it has been applied to several other industries, including real estate and the food industry. Blockchain technology will play a significant role in helping us implement smart cities, which can serve as testing grounds for future implementations of this type of infrastructure worldwide.
A new study from IBM suggests that 15% of global GDP will be stored on a blockchain or related technology by 2025. However, some experts have suggested that this projection could reach up to $100 trillion within the next ten years, making blockchain technology a market worth watching in the years ahead.
Rise of Security Tokens
The third trend, the rise of security tokens, is occurring because blockchain technology has helped remove several frictions from traditional securities, including trading and settlement times and transfer costs. This will have a significant impact on companies who choose to use security tokens because it allows for faster execution through smart contracts, allowing companies to access a global pool of investors without having to deal with jurisdictional issues that were previously very common across multiple exchanges.
Currently, more than 50 projects have managed to raise over $1 million in funding through ICOs (initial coin offerings), including Morpheus Labs, which managed to raise $5.3 million during its initial coin offering.
Utility Tokens & D-App Coins
The final trend, which is ongoing for various reasons, is the rise of utility tokens and d-app coins. Although there are a lot of projects that have managed to raise significant amounts of money through ICOs in the past year, many expert traders have also mentioned that these projects will need to add actual value to their respective networks if they want to continue experiencing growth from investors looking to purchase their tokens during future offerings.
This can be done by focusing on how a particular token’s blockchain network can add specific functionalities which will bring further decentralization and increased security while also giving users access to new forms of entertainment or other utilities.
The Bottom Line
Crypto is still in its early stages, and we’re likely still a decade away from mass adoption. But there are definitely some trends we can start watching for that will point to how it’ll go in the future. Thus, if you want it to succeed, you need to learn how to deal with them.