The Blockchain Space Is Evolving At A Rapid Pace.
Crypto is a constantly evolving space, but it’s also a developing industry. Some trends are here to stay and will serve as the foundation for the crypto economy moving forward. Others are cyclical in nature and will be replaced by new trends in time. But no matter what becomes of them, there are six major trends that point to where the crypto space is headed: growth of crypto assets, price volatility, increased regulatory scrutiny, central bank digital currency (CBDC), blockchain and DeFi (decentralized finance) solutions, and NFT (non-fungible token) market growth. These trends indicate that there is still much room for growth in this nascent financial ecosystem—but they also show how important it is for regulators to come together with industry players in order to ensure that everyone can benefit from these advancements while mitigating risks along the way.
Growth of crypto assets
The growth of crypto assets is a positive sign for the industry. According to a recent report from CNBC, global cryptocurrency trading volume has increased by more than three times since May. This indicates that more investors are becoming interested in cryptocurrencies and it could be an indicator that we will see an increase in overall adoption over the next few years.
The report shows that global cryptocurrency trading volume has increased from $13.7 billion in May to $43 billion in June. This is an increase of 250% and it shows that there is still plenty of momentum behind this industry, even though prices have been falling over the past few months.
In addition, many analysts are pointing towards institutional investors as being one of the main reasons why we have seen such an increase in volume over the past few months.
Price volatility is a measure of how much the price of an asset changes over time. In the case of cryptocurrencies, it’s defined as the difference between the highest and lowest prices reached in a given period.
In an idealized market for cryptocurrencies, there will be positive returns on investment (ROI), but that doesn’t necessarily mean that you’ll make back what you put in. Remember: The market is volatile! That’s not necessarily bad news if you’re looking to invest—it just means your ROI won’t be stable or predictable.
The price of a cryptocurrency doesn’t have to be stable for it to be useful. Many people are looking for a way to transfer money across borders quickly and cheaply, and cryptocurrencies can provide that service. The volatility may drive down the value of your investment, but it also means that you could get more money from the same amount invested at some point in the future.
Cryptocurrencies are also a way to protect yourself against inflation. If you’re living in an economy that’s prone to inflation, investing in Bitcoin could help you preserve your savings. However, if you’re using cryptocurrencies as a store of value rather than spending them on goods and services, the volatility is an issue for another reason: It makes it harder for businesses to price goods and services accurately.
Increased regulatory scrutiny
The crypto industry has been under a lot of scrutiny lately. For example, the US Securities and Exchange Commission (SEC) recently announced that it was suing one of the world’s largest cryptocurrency exchanges for allegedly defrauding its customers. This news came shortly after reports that researchers had found evidence of market manipulation in Bitcoin’s price movements during 2017—and months after Facebook banned ads for ICOs and cryptocurrencies from its platforms due to concerns about scams.
This is a positive development for the industry, as it shows that regulators are taking their job seriously and want to ensure that consumers are protected.
The crypto industry is still in its infancy and needs to be protected. At a time when there is a lot of uncertainty about how regulators will treat the space, it’s good to see that companies are taking their responsibilities seriously.
Blockchain and DeFi
The next trend we’re closely watching is DeFi, or “decentralized finance.”
DeFi is a decentralized financial system that’s built on top of blockchain technology. It’s a collection of protocols that enable the creation of new financial products, including lending platforms and stablecoins like MakerDAO’s DAI.
Because it operates outside traditional institutions, DeFi can serve populations that were previously underserved by banks—for example those living in developing nations with unstable currencies or who don’t have access to traditional banking services.
DeFi is growing quickly and we expect it to continue to grow as more people realize that a decentralized financial system offers benefits beyond security and transparency. These include lower fees, faster transactions, and better access for those who have been excluded from traditional systems.
Central bank digital currencies
Central bank digital currencies (CBDCs) are the latest crypto trend to watch. We’re talking about a digital currency that is issued by a central bank, rather than Bitcoin or Ethereum. They could be used as legal tender for payments and settlements, or they could become an alternative payment system to existing currencies.
In order for this idea to work, it would require governments to acknowledge cryptocurrencies as legal tender and integrate them into their financial systems. This is not easy because of the decentralized nature of these assets: if you want a dollar from your friend but can only pay in cryptocurrency (say bitcoin), then your friend has no way of getting access to their money again unless they find another person who will accept bitcoin for them (which might not be likely).
Central banks have tried issuing their own versions of digital currencies before (for example: Sweden’s eKrona project) but none have been successful so far due mainly due security concerns regarding hacking attacks against centralized systems which make using such systems less attractive than using traditional ones where people have more control over their funds at all times during transactions across borders without having fear about losing their money forever if something goes wrong during those operations.”
Non-fungible tokens (NFTs) are a new class of blockchain-based digital assets. They are unique and non-interchangeable, meaning that each token is different from the others in its type and appearance. NFTs can be used to represent a physical product or service, such as concert tickets or airline miles; they can also be used for other intangible assets such as collectible cards or digital artwork.
NFTs are similar to cryptocurrencies in that they are traded on distributed ledger networks—but unlike utility coins (e.g., Bitcoin), which do not have any inherent value beyond their use as a medium of exchange on the blockchain network, NFTs are self-contained digital objects that have value by virtue of what they represent: an item belonging to a digital ecosystem built around them.
In the last few years, NFTs have become a popular way to represent a product or service in the form of a token. In this context, the NFT market can be thought of as an ecosystem that allows users to buy and sell digital assets on blockchain networks.
The NFT market has grown significantly in popularity over the last few years, largely due to the success of popular games such as CryptoKitties, which allows users to purchase and trade digital cats that are stored on Ethereum. More recently, EOS has seen similar success with their blockchain-based game called Monster EOS.
All these trends point to where the crypto space is headed.
All these trends point to where the crypto space is headed. The size and importance of crypto assets are growing, but prices are volatile, which is normal for a new asset class. Regulators are watching carefully and will be watching for some time. Central banks have started issuing digital currencies that allow them to follow monetary policy in real time, as well as other benefits such as faster payments or greater transparency about their balance sheets. And blockchain technology and DeFi are expanding and improving how we do business globally.C
The big takeaway is that the crypto space has become much more mainstream. It’s not just about Bitcoin anymore and we are seeing increased interest in other digital assets as well as new use cases for blockchain technology.