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It would be outright dishonest to say that today’s world of cryptocurrency is where people in May 2028 expected it to be. It did hit a rough patch, and, at the moment, no one knows how long this bearish market will last. However, there are a few trends that might turn this thing around. Here are eight of them.
1. Crypto regulation
Since China banned Bitcoin, everyone in the crypto world has been terrified of regulation and what comes next. While no one expected an asset this valuable (and omnipresent) to remain unregulated indefinitely, there’s still a lot of uncertainty about it.
Well, it seems that EU lawmakers are considering making their crypto regulations. The Markets in Crypto Act (MiCA) is not just huge for the EU but for crypto regulation across the globe. It’s the most comprehensive regulation to date, and some expect it to become the golden standard for future regulators.
One of the most important takeaways is that it reduces the level of anonymity of crypto transfers to combat money laundering.
While a lot of people hate the idea of regulating crypto, to begin with, it’s more than evident that this asset type cannot grow further without it.
2. The NFT market is still growing
Imagine buying an asset and getting a document testifying that you’re its owner. Now, imagine if you owned a digital asset. This could be anything from a piece of content to a new poleaxe in an upcoming MMORPG. This proof of ownership is what non-fungible tokens (NFTs) are all about.
Now, while it’s directly tied to a market that’s not performing very well, the NFT market is still growing. This has been the case since the start of the year, which is incredible since the rest of the industry was not doing so well.
While the concept has existed since 2017, it has just recently exploded, and it seems near-impossible to put the genie back in the bottle.
3. New coins for a fresh start
The potential reward will always determine the demand for crypto. With new promising coins, it shouldn’t be hard to reignite public interest in this topic. This is mainly because most recently launched coins also have a utility.
For instance, AI coins are huge right now (a bit more about this later). Other coins, like Ecoterra, are closely tied to recycling projects, while DeeLance focuses on the freelance industry.
In other words, unlike fiat, they’re tied to a real-world movement, problem, or concept. Since their value tightly correlates with them, the trend’s importance may help the coin’s value. This helps us achieve lower volatility and much greater trust in these cryptocurrencies.
Also, since they’re new and prospective, there’s always a promise of early adoption. Therefore, people are motivated by their chance to make a profit.
4. Ethereum 2.0
Ethereum is the world’s second-largest cryptocurrency. It’s nestled between the face of the industry (Bitcoin) and its largest stablecoin. For this reason, everything new that happens to Ethereum changes the industry. Not to mention that many smaller cryptos are developed by the same team and operating on the same platform.
Simply put, Ethereum 2.0 is a massive upgrade of the Ethereum network. As we’ve already mentioned, many different coins exist on this platform, which will be affected by the upgrade.
The most misleading of all ideas regarding Ethereum 2.0 is that there will be a release of sorts. The 2.0 represents how big of a change (and how big of an upgrade) it is compared to the original Ethereum. This is also why most of the community refuses to use this term. In their minds, this is not a new product, just an advanced version of the old one.
Be that as it may, the difference is real, and the changes it will make in this field are huge.
5. AI coins grow are on their way up
If one topic is on everyone’s lips in 2023, it’s AI. Today, there are more AI applications and services than ever in history; therefore, it’s no surprise that there’s a huge trend of new coins developed to support or facilitate the development of this industry.
Soon, some of these coins may be the simplest way to access or pay for these AI features. Since most industries already heavily rely on AI tools, it isn’t hard to imagine that the demand for AI coins will skyrocket.
Another thing that both AI and crypto have in common is their ever-growing need for more computing power. Both trends rely on attracting more attention, investors, and participants to function. Fortunately, all these things come with growing popularity, and AI is currently a household name.
6. Crypto and green energy still have an unbreakable bond
The crypto industry gets a lot of bad reputation because massive computing power is required to maintain this DeFi. However, what a lot of people are unaware of is the fact that crypto may play a huge role in securing a green future. This will solve one of the industry’s greatest deficiencies and appease those concerned by this issue.
For instance, some believe that energy tokenization may incentivize green mining operations. We’re talking about massive facilities producing green energy (regardless if it’s solar, wind, or hydro-based).
It’s also worth mentioning that there are currently a lot of green mining initiatives out there. These programs incentivize eo-friendliness in the use of mining technology. While this doesn’t solve the problem, it makes the situation less dire.
Sustainability initiatives purchase carbon credits to make up for the environmental impact. This way, you make an effort to make up for any pollution you cause by moving in the opposite direction in the other field. If this becomes an industry standard, hundreds of millions of new participants may adopt carbon offset projects. This alone is a power to be reckoned with.
7. Socio-economic impact of crypto
The fact that crypto is anonymous and non-centralized opens up so many doors for potential covert use. For instance, when the war in Ukraine started, Russia tried to use crypto to bypass sanctions, while Ukraine used these platforms for fundraising.
The best thing about this example is the dichotomy of the entire situation. Cryptos are just assets that their users can do as they like. They can be used for good or bad, with little oversight.
Are we going to see examples like these in the future?
If and when cryptos are regulated, this won’t happen as often. Still, the fact that cryptos are decentralized require low transfer fees, and have a versatile use, makes them an ideal platform for these scenarios.
Sure, you can use crypto for humanitarian causes, but just try to remember what Bitcoin was mainly used for in the Silkroad era.
8. More trouble before the happy ending
It would be encouraging to pretend that all the current problems with the crypto market will magically disappear overnight and it will all return to its bullish position in 2021. However, this is unlikely to happen. While the crypto market is still far from throwing in the towel, and it’s bound to bounce back, no one can tell for certain how much longer this state of affairs is going to last.
The FTX and Alameida collapse and controversy didn’t do the crypto world any good. The market was already notorious as unreliable, and all it needed was yet another Ponzi scheme. It will take a while for the world to lose this from their mind. Still, a market that survived the Mt. Gox hack can survive virtually anything.
In terms of good news and promising fresh starts, 2023 might be a year of change for the crypto world
We live in an interesting time. Sure, crypto has hit a rough patch, but from a technical standpoint, things never looked more promising. With the rise of AI, Ethereum 2.0, and NFTs still alive and kicking, there’s a lot to look forward to.
