Investing in crypto does not seem to be as easy as it sounds at first glance. If you are not familiar with this field and do not know your next step, you will have to go through a much more complex way to succeed.
Today the world of cryptocurrency is growing and evolving very fast. The total market capitalization of cryptocurrency has already exceeded $2.2 trillion. There are about 100 million crypto users in the world.
Although changes in the trading market are constantly occurring, these trends are likely to continue until 2025.
One of the most critical developments in the crypto space is the rise of non-functional tokens. According to Nigel Green, CEO of deVere, the NFT market will see massive growth in trading volume over the next 12 months.
Nigel noted that the NFT market reached a new record in the second quarter of 2021. That’s almost 20 times more than the $13.7 million in the first half of 2020. He said demand from giant investors like Visa, who realize the future is focused on the digital world, will explode.
NFTs provide you with what you can not copy – ownership of the work. Experts predict that NFTs will increase again over the next five years.
Increase of Altcoins
An altcoin is an alternative to cryptocurrency for Bitcoin. Bitcoin is widely regarded as the first currency of this type. The new cryptocurrency is seen as an alternative coin – or altcoins.
The seven largest cryptocurrencies can exceed expectations: Dogecoin, Litecoin, Algorand, Cardano, Stellar-Lumens, Binance Coin, Solana.
The main charm of altcoins is that they are cheaper than other large coins. So investors can buy more.
Regulation of Crypto Space
The most important thing we can say about 2021 is that this year is a year of clear clarity for the growth of the regulator in the crypto market. Legal questions about cryptocurrencies still confuse regulators.
The whole point of cryptocurrency is that it is not regulated by the government and therefore not monitored; however, this can be changed.
In 2020, the SEC entered an accusation against Ripple. Ripple Labs has been under investigation by the SEC for almost a year, putting their XRP coin in jeopardy. However, that did not stop XRP from buying; it just slowed down the process.
This case has raised additional questions about specific parts of the crypto market. It is still unknown what is safe in the commodity digital world.
The DApps Market is Expanding
The potential market for decentralized software is enormous. DAppRadar estimates that the total volume of the DApp transaction will increase to $271 billion by 2020. According to DAppRadar, about 45 per cent of DeFi DApps run on approximately 2,000 DApp Ethereum blockchains.
The Increase of the Stablecoin
80% of the market is Tether. Tether is a blockchain-based cryptocurrency with trades in the US dollar equivalent. Stablecoins keep track of traditional currencies such as the dollar, euro, or yen held in a particular bank account.
The total market value of stable coins increased by $500 billion to $23 billion last year. Many times, stable coins are in DeFi applications due to price stability.
Large companies like Paypal are now more interested in investing in cryptocurrencies. Financial institutions and large corporations have previously viewed the cryptocurrency ecosystem with suspicion. However, the excellent news is that this has been replaced.
Many institutions today allocate capital to the cryptocurrency sector. Institutional assets of $15 billion were distributed to the crypto asset class by the end of 2020. Paypal and Venmo launched cryptocurrencies on their platforms last year.
The growth of DeFi programs this year has attracted much attention. The method uses traditional financial transactions that carry through a blockchain. Transactions are usually done using smart contracts. Unlike conventional transfers, they avoid the need for financial intermediaries.
DeFi transactions typically range from traditional lending to the creation of derivatives.
As mentioned above, the cryptocurrency market, like the stock market, is unpredictable. This is due not only to NFT innovations but also to significant coins due to market volatility.
Innovation in this area is constantly underway, and development is likely to continue over the next decade.