Cryptocurrency trends to watch in the coming years
The cryptocurrency world has been a wild ride since its foundation, with prices fluctuating and investors allowed to scratch their heads. When we go to the next year, it’s time to look at the trends that shape the industry again.
In this article, we will dive into the main trends that we think will form the cryptocurrency landscape in the next 12 months.
1. Growing adoption and normal recognition
Over the years, more and more people learn about cryptocurrencies and their opportunities as a means of exchange. We see increasing adoption in various industries such as finance, e -commerce and games. Companies such as PayPal, Square and Robinhood have already begun to integrate cryptocurrency into their platforms, making the path to greater major recognition.
2. Increasing competition from other digital assets
The space is increasingly congested as new players enter the market every day. We can see that the competition of cryptocurrencies such as Bitcoin, Ethereum and Litecoin, leading to an equal condition for investors. This can lead to faster price discovery and a more efficient market.
3. Regulating checks continues
Regulatory authorities around the world are focusing on the cryptocurrency industry, where governments such as China, Japan and South Korea present new regulations to curb speculative activities. While it may seem bad news for investors, it also creates an environment that encourages innovation and experiments.
4. Growing interest in decentralized finances (Defi)
Decentralized finance has become more and more popular in recent years as platforms such as Makerdao, COMPOUS and Aave have become household names. We predict that Defi will continue to gain popularity, with more investors using high returns and low taxes.
5. Increasing interest in NFT
Intravenous chips (NFT) have been a storm since last year’s presentation. Artists and collectors require you to handle digital collectible items. We predict that we will notice the increased NFT reception in various industries, from games to music.
6. Increased attention to sustainability
As the environmental sustainability grows, investors are increasingly looking for cryptocurrencies with extensive experience in reducing carbon emissions. We see more companies involving sustainable practice in their operations and marketing strategies.
7. The increasing importance of storage and safety
Demand for safe storage solutions increases with the increase in Defi and NFT. Investors are looking for cryptocurrencies such as Ledger, Trezor and Metamask, to preserve their assets by offline, emphasizing the importance of security in the cryptocurrency space.
8. Central Bank’s Digital Currency (CBDC) Carpet
Central banks began to explore the development of digital currency. Many governments have announced plans to release their CBDC in the next few years. We predict that we will notice the increased activity of central banks as they seek to mitigate the risks associated with the traditional Fiat currency.
9. The increasing interest in alternative blockchain technology
As the space progresses, investors are increasingly seeking alternative blockchain technologies such as Polkadot, Solana and Cosmos. These platforms offer new use of cases and high returns, but also face unique challenges and restrictions.
10. Increasing AI and Machine Learning Use in Cryptocurrency Trading
Artificial Intelligence (AI) and Machine Learning (ML) are increasingly used to analyze market trends and predict price changes.