The internet is awash with cryptocurrencies, and the segment as a whole has done very well in recent times. This has seen a huge influx of those who want to invest in the sector as well as entrepreneurs who are innovating in all manner of ways to produce new currencies and new ideas for crypto exchange and use.
This article looks at the most current trends in the crypto markets at the moment.
1. Increase in new currencies
The popularity of crypto has seen over 12000 cryptocurrencies developed in recent times, and this growth is expected to continue as increased numbers of entrepreneurs look to benefit.
There is generally no real barrier to entry, and as such, any developer or entrepreneur is able to develop a currency and make it available to the general public.
The most notable currencies, however, still remain the tried and tested ones, such as Bitcoin and Ethereum, and perhaps ten or so other currencies that are regarded as genuine investment opportunities or that can be widely used in the metaverse.
2. Increased security and safety
As the technology improves, the ability to secure and protect all transactions has also improved, and established cryptocurrencies based on blockchain technology have proven to be some of the most secure and anonymous financial transactions that there are.
Once a component has been legitimately added to the cryptographic chain, it is impossible to alter or change it to commit fraud.
The fact that crypto is essentially peer to peer and operating without a central banking control means that the levels of cyber safety and security need to be at their absolute best to provide trust and assurances.
3. Continued risk as shown by recent collapses
It is an odd trend to report and write on, but the truth nonetheless, and as with any other investment, is there is a degree of risk related to the purchase of cryptocurrency.
The risk of buying into an untested and unknown currency may result in total loss of the initial capital. Furthermore, there is the risk of a loss of value or the inability to use the cryptocurrency that you have bought in a manner that you want to.
4. Ongoing volatility
If there is one thing that we have all learned about cryptocurrency, it is that it is some of the most volatile forms of finance that there is.
Crypto is essentially dependent on demand which is itself driven by market and financial sentiment rather than any central controls or banking mechanisms, and as such, it is a form of currency that has fluctuated widely.
It is very much expected that this trend will continue in both directions. It is thus essential that if you intend to invest in any crypto, you use systems to track and understand the daily rates as well as historical changes and fluctuations.
There are great resources out there, and sites like OKX provide a fantastic example of all this information for the Bitcoin.
Knowing exchange rates, volumes of sales, highest prices reached over a certain period, and any associated predictions is the best way to deal with the fluctuations of crypto such as Bitcoin.
5. Further financial innovation using blockchain
There have been a number of related and integrated sectors and industries that have sprung up alongside cryptocurrencies.
One of the main protagonists in this regard has been the NFT market, and the use of crypto to purchase and trade in non-fungible tokens has become a major component of crypto or financial investment.
The rise in decentralized finance applications using blockchain has taken many financial markets by surprise as venture capitalists and entrepreneurs look to make use of the newly available tech to avoid excess regulation and unnecessary delays in current international financial transactions.
6. The tokenization of everything
The rise of non-fungible tokens and the increase in people who want to create digital claims to a variety of items and assets has created an entirely new way of financial interaction online.
This is a trend that is expected to continue, and sites exist where you can mint your own NFTs quite easily, allowing anyone with internet access to become part of this new form of enterprise.
7. Top institutions are adopting crypto
There was a time when crypto was regarded as incredibly niche, and for many, it was a bridge too far.
However, there has been a period of stability, and this has encouraged some large multinational institutions and enterprises to adopt crypto as a currency and the supporting blockchain systems to improve and develop their own standard operation procedures.
8. Regulation may still be on the cards
The rumors abound, and it may not be a trend per se, but the noises remain that there will be some form of government or state regulation for cryptocurrencies in the near future.
There have been a number of recent crypto challenges and, as such, more impetus for centralized regulation.
9. Bitcoin is still the standard bearer
The fact that Bitcoin is the largest and most valuable crypto, as well as the longest-living crypto, means that it has always been the currency to track and follow.
It is the ‘canary in the coal mine’, so to speak, and investors and finance specialists alike still use Bitcoin to check on the health of the crypto sector and determine its fitness for purpose as we go forward.
10. Interoperability or cross platform usability
You may want to invest in a number of different cryptocurrencies, and this means that there needs to be a means of using the same e-wallets, systems, and processes to rationalize and speed up the entire process.
The idea is that you should be able to use the exact systems for any cryptocurrency that you intend to buy.
Just as you are able to have cross platform gaming, the argument in crypto circles is that we are now in a time where technology should allow for interoperability between all the various crypto, allowing people to invest in all or any cryptos using the same systems, processes, and security.
These are the top ten trends in the crypto space at the moment. Just as cryptocurrencies are fast-moving and ever-changing in terms of volatility and their actual initial development, so too has been the manner in which these trends change and develop.
These may very well not be fully realized trends, but at the moment, they are all the rage and in constant discussion on online forums, blogs and articles.