We’ve been the generation of cryptocurrencies. The concept behind decentralized currencies has attracted a lot of interest from traders looking to make a profit to speculators occasionally sending prices extremely high.
However, there has not been much from the ‘next era of transactions’ after Bitcoin. Instead, the most well-known cryptocurrency, Bitcoin, has experienced erratic price changes.
Its value nearly reached US$69,000 in November of last year before falling by over half in January of this year. The cost is now circling between $42,000 and USD 45,000.
Besides, BTC’s competition, Ethereum, has failed to perform in the latest markets.
So, would it be the end of the investors in the crypto market?
Continue reading as we explore some emerging trends that could be game-changers for the crypto industry in the coming years. Let’s get started.
A Surge In BTC’s Price
It is no surprise that Bitcoin (CRYPTO: BTC) continues to be the most widely used cryptocurrency in the world. Its market value is currently close to US$1.1 trillion. Bitcoin would be more significant than Tesla and Meta Platforms, the former Facebook.
The benefit of being the initial cryptocurrency is still something that Bitcoin has. Because it has been around longer compared to any other digital asset, it is more universally accepted. In addition, since there can never be over 21 million Bitcoin assets in circulation, some investors see it as a valuable hedge against inflation.
However, with the ongoing crypto winter, investors are still waiting for the Bullish phase. Considering the past events, we’re both positive and negative about the possibility of such a run anytime soon.
Ethereum Could Rise To The #1 Position
Ethereum (CRYPTO: ETH) comes in at a distant No. 2 to Bitcoin on the list of the most widely used cryptocurrencies. Its market cap is less than half that of Bitcoin, hovering around US$500 billion. However, other people think Ethereum will succeed over Bitcoin. The primary advantage of Ethereum is its practical utility.
Its Blockchain supports smart contracts that are employed in a variety of applications. In addition, Ethereum is very well suited for producing non-fungible tokens (NFTs). Whether the cryptocurrency unseats Bitcoin as the market leader shortly, Ethereum seems well-positioned to endure.
These factors might push ETH to become a market dominator with increasing prices and better functionality. Besides, considering the ETH 2.0 update into the equation, there are better chances of the token booming to the #1 position.
New Rotations Shall Emerge
ETH’s value has decreased due to a price decline. Since the merger, Ethereum’s value has fallen from its higher cost of $2000 by 30%. Therefore, the stablecoin may be the upcoming potential for alternative investments.
Along with ETH’s uneven performance in the last few months, Cosmos (ATOM) resisted a bearish phase. The resulting move was a downward trend in the market, staging a significant rally between the $5.40 to $16.85 price range.
As per analysts observing the intense price action, the altcoin is said to be supported by oversold conditions and the excitement surrounding the Cosmos 2.0 update.
Following the latest updates from ATOM’s white paper, we now confirm that the token’s supply will change in response to the supplies and demand for its staking.
The issue of new ATOM tokens is expected to rise when the Cosmos 2.0 update blends during the initial ten months. The asset is expected to deflate after its transition into the 36th month. Given that the months followed, Cosmos 2.0 would constitute a “buy the rumor, sell the news” situation.
Observe Ethereum Network Activity
While the price of Ethereum has dropped significantly since the Merge and has fallen by 97%; investors should continue to monitor Ethereum network activity, developments with ETH staking across decentralized finance (DeFi), institutional products, and any increases in gas prices over the coming months.
The market may see a short-term adverse trend in the price of Ethereum, but given the growing popularity of Defi goods, there is a chance that it may turn around shortly. Therefore, investors of the DeFi goods might be in a better position, even if the industry follows an overall downtrend.
BTC’s Price Movement Will Continue To Rule After The Merge
Even though new trends for various altcoins can appear, it’s crucial to consider the larger environment wherein the mind and the larger environment wherein the crypto assets are present. Global economies are in trouble, and the United States and many other nations, continue to struggle with chronically high inflation.
Bond prices are volatile, and a growing debt crisis becomes more apparent daily. Risky investments like cryptocurrencies are extremely erratic. Even the most robust price trends (regardless of whether they are supported by fundamentals or otherwise) are subject to the whims of macro factors like the stock market, geopolitics, and other business events that affect investors’ sentiments.
Bearing this in mind, BTC remains the most valuable asset by market cap inside the crypto sector. Therefore, any significant changes in the price of BTC are certain to either support or suppress any emerging microtrends in the market. At the same time, several criteria may support opening large positions in different crypto assets.
Besides, it still looks too early to fully ape in, so traders are advised to calculate investment amounts according to their appetite for risk. There is still a chance that the price of Bitcoin will fall sharply, so they are urged to do so.
Why Is Crypto Said To Be A Game Changer?
The future of finance is cryptocurrency, and it will stay. Digital currency, or cryptocurrency, is considerably more straightforward and practical for several reasons. As is well known, the world is constantly evolving, and discoveries are made every day.
Two important factors are better security and the desire to improve man’s quality of life. Cryptocurrency has checked these two boxes.
Since 2009, when the first cryptocurrency, Bitcoin, was created, it has gained enormous popularity, and its market is now worth billions of dollars. There continues to be a great deal of interest in cryptocurrencies because they have many appealing characteristics. It is here to stay that can only become better.
Cryptos For A Positive Future
Cryptocurrency is one of the most significant technologies of the future since it provides greater security and safety for transactions and is quick and easy to use for international transactions. In addition, the notion that hefty fees can be avoided by exchanging cryptocurrencies is also present.
Since the world is turning to cryptocurrency to develop finance, it is advisable to become familiar with it as soon as possible. This is because cryptocurrency has all the makings of a future financial instrument.