There has been a lot of agitation in the cryptocurrency world, with surprising ups and downs since mid-2022. Despite such drastic crashes in the market, businesses and developers have been breaking new ground on current blockchains. Some big players are involved in testing creative contract ideas.
Starbucks, for example, has launched a Polygon loyalty program using NFTs. Besides, well-known messaging platforms like Signal and Telegram are incorporating many cryptocurrency features.
Just imagine that if only 10% of Twitter and Facebook users adopt cryptocurrencies for value transfer, it could impact the whole crypto market exponentially. To ride this intense wave well, think of adding a strong cryptocurrency trading terminal to your strategy. That command center helps you understand trends, make trades, and make money out of it.
The following are the latest trends that could possibly transform your net worth if navigated strategically.
Top 6 Cryptocurrency Revolutionary Trends in 2024
1. Cryptocurrency ETF approval
The first Bitcoin-named ETF came in 2021 on the New York Stock Exchange. It was a notable milestone. With this action, more traditional ways of investing in cryptocurrency came out. BITO Bitcoin ETF allowed investors to buy crypto directly using conventional investment brokerages, like Vanguard or Fidelity, using their current accounts.
Yet, critics have their say on this. They argued that BITO ETF may have a few constraints as it may not directly hold the crypto, rather depending on Bitcoin’s future contracts. These futures usually reflect the trends of the real crypto, but they might not exactly track its price. As a result, some of the investors may think of waiting for an ETF that can directly hold Bitcoin. As per the SEC’s last considerations on ETF approval, BITO was the first to get support. The point to be noted is that investing in an ETF like BITO has the same risks as any other cryptocurrency.
2. Cryptocurrency Regulation
The cryptocurrency industry is highly engaged in regulating cryptos on a large scale. Lawyers worldwide are framing laws and rules to improve the safety of transactions. This step for regulation is mainly necessary to discourage cybercriminal activities. But making those rules is troublesome as various countries and businesses have different ideas about who would be in charge.
So, what do these new regulatory rules hold for crypto investors? The U.S. president signed a bipartisan infrastructure bill of around $1.2 trillion in 2021, which included provisions for crypto tax reporting. All these provisions aim to run the IRS’s examination of crypto activities. These new rules might be tiring, but these are supposed to make things easier. They can track your gains and losses on crypto and further report to the government. New rules can potentially impact cryptocurrency prices in volatile markets, but several experts say this is a positive thing overall. As a result, this implementation could be a transformative factor in helping all stakeholders involved.
3. Web 3.0 entrance
Web 3.0 is a new wave and the third version of the internet. It’s like you are developing your website clubhouse, without any requirement of huge companies as owners. Also, there’s no need to pay hefty fees to large corporations. The perk that Web 3.0 offers is the ability to personalize the Internet. There will be no more crashes as if one edge of the internet stops, the entire party doesn’t stop working. Suppose Facebook went down, you still can chat with your friends using another Web 3.0 app. Moreover, with the growing adoption of Web 3.0, cryptocurrencies like Helium, Ethereum, and Livepeer will be affected and connected to the third version.
4. Adoption of Green Energy
Cryptocurrencies have been at the receiving end as they can negatively impact the environment. Let’s take Bitcoin mining; it churns around 40 billion pounds of carbon emissions in the US alone. With many carbon emissions, the Proof of Work (POW) makes fossil fuel-generated energy essential. However, the element is gradually changing as new blockchain networks have begun to use more eco-friendly consensus mechanisms. Surprisingly, the continuous attempts to develop a sustainable consensus mechanism have deeply pushed green energy adoption.
5. Decentralized Finance (DeFi)
The newest things in the cryptocurrency world, like Decentralized Finance (DeFi) and decentralized autonomous organizations (DAOs), are expected to grow a lot, as per Bryan Gross from crypto platform ICHI. Defi has an objective to make conventional financial products but with no middlemen. However, DAOs could be a new community on the web. Deposits into DeFi services surpassed $200 billion in 2021, and demand is expected to grow in 2022.
In 2021, more than $200 billion was invested in DeFi services, which will grow in the following years. Carol Alexander said that investors need to keep an eye on Polkadot, Ethereum, and Solana coins if they want to earn money.
As per CNBC’s report, DeFi is part of a wider trend named Web 3.0. People who support Web 3.0 say that large companies like Facebook, Amazon, Apple, and Alphabet have high control over online platforms. There’s a requirement for a new and decentralized iteration of the internet that uses blockchain and non-fungible tokens. Yet, big businessmen like Jack Dorsey and Elon Musk remain skeptical.
6. Some meme coins will disappear
A spinoff of Dogecoin called Shiba Inu last year increased by 44,540,000%. Another coin joined, Squid, inspired by the famous television drama “Squid Game”, increased more than 75,000% in less than a week, only to disappear soon thereafter.
Before we conclude, it’s essential to know that crypto markets can be highly unpredictable. However, the things people predict might always be correct. If you are planning to invest in cryptocurrency, doing your own deep research first is vital.
Yet, the reality is it’s still a new investment. Furthermore, there are many interesting trends in the cryptocurrency space, like decentralized social stuff, layer twos, and blockchain gaming. So, keep a check on all the cool things occurring in the crypto world.