W ith cryptocurrency taking over the world by storm, many trends have emerged. Whether you’re someone who likes to stay updated, or someone who is actively part of the crypto scene, here are some of the latest trends in the crypto industry listed below. It’s important that you know them, and can identify them to turn a profit for yourself if the case arises.
The Bitcoin ecosystem has long been viewed with suspicion by financial firms and huge enterprises. However, many organizations are now making every effort to allocate funds to this field. The business of asset management has become a prime example of this. By the ending of the year 2020, the cryptocurrency asset class had received $15 billion under the management of institutional assets. Relative to just a little over two billion USD by the end of the year 2019, this shows a significant gain of fivefold.
While this figure is still insignificant in comparison to the broader asset management business, future regulatory clarifications may serve to increase it. One of the main reasons behind this shift is that consumers are finding it easier to deal in cryptocurrency compared to the rules of financial regulators. Last year, PayPal and Venmo both made crypto trading possible on their systems and noticed that people who purchased cryptocurrency through the PayPal application logged in almost twice the times compared to before.
The introduction of DeFi, which is Decentralized Finance, has received much interest in the cryptocurrency market. The idea is that the typical financial transactions are carried out on a singular blockchain. They also eliminate the requirement for banking middlemen entirely, contrasting traditional payments and transfers.
The DeFi industry is really just getting started. The TVL, which is a calculation of the entire sum of value that cryptocurrencies secured to a DeFi smart contract, increased from two billion USD to a whopping 15 billion USD in 2020, according to DeFi Pulse. Furthermore, the year 2021 has seen extraordinary growth. For example, the TVL nearly doubled to almost $35 billion since the start of this year.
Yield farming is probably one of the greatest and prominent DeFi applications in recent years. Yield farming is the practice of lending digital currencies to certain other networks in exchange for interests or fresh coins. In certain ways, yield farming appears to be quite akin to online banking.
The introduction of NFTS, also known as non-fungible tokens, is perhaps the most intriguing trend in the blockchain and crypto realm. These tokens are essentially digital entitlements to a one-of-a-kind product or asset. They may symbolize a virtual or a real object. Fungible tokens and currencies, like bitcoin, may not always reflect claims to an actual asset or item. They may be exchanged and broken down into smaller chunks. However, domain names, real or virtual artwork, video game accessories, and collectibles are all represented by NFTs.
Most of the NFTs feature embedded smart contracts which specify the real or virtual object they symbolize and are often generated on the Ethereum blockchain. The monthly trading volume of NFTs reached about $15 million by October 2021, according to sources. However, this amount is expected to rise, given the market capitalization of Ethereum's NFT industry, which rose to thirty-three million USD from just 3 million USD in January.
Software programs that operate over a decentralized p2p network are known as decentralized apps (DApps). The decentralized apps market has enormous potential. Many DApps that operate on Ethereum's blockchain have DeFi technology. In addition, DAppRadar discovered that the blockchain of Ethereum was used by around 45 percent of emerging DeFi DApps.
Ethereum's ecosystem is seeing an increase in transaction volume. DeFi Ethereum apps account for 95% transaction volume of DApp. According to the latest numbers, Ethereum's blockchain hosts over 3000 DApps. Several of the popular DApps, such as SuperRare and Uniswap, are based on Ethereum.
Systems like TRON and EOS are gaining interest beyond Ethereum by eliminating transaction costs and attaining considerably greater scalability than other decentralized DApp platforms, due to them minimizing the shortcomings of Ethereum.
So, now that you are aware of some (not all) of the trends in crypto, we hope you’ll put it to use. Understanding where the world is headed can help you plan your next move. If you are interested in cryptocurrency and/or the metaverse, these latest trends in the crypto industry are something you must be updated with so that you can cash in on any opportunities that arise.
