The crypto future looks really good thanks to new lock downs, low-interest rate policies and, and rising commodity asset prices worldwide force investors to look for alternative investment instruments. Cryptocurrency has been serving this role in some situations for three years now. And, as the market grows and matures, this function will only get stronger.
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The significant trends that shaped the crypto industry?
While BTC and ETH achieved new all-time highs this year , respectively, cryptocurrencies maintained s upward trend throughout , with their combined market capitalization. Institutional players, who entered the digital asset market in large numbers this year, played a significant role in the growth of cryptocurrency prices. However, retail investors also remained bullish during the year and bought assets at every considerable decline.
-Inflation
The large amounts of liquidity that global financial authorities have poured into the markets by launching printing presses have greatly accelerated inflation. The low-rate policy pursued by major central banks, coupled with the volume of quantitative easing and financial support, has led to a drop in fiat’s purchasing power. As a consequence of global central bank fiscal policies, investors have realized the significant risk reduction of classic financial assets. This has increased the demand for cryptocurrency as an alternative investment instrument.
-Regulators
In May for example when the Chinese government advocated a complete ban on crypto mining. While it was a significant event with a great impact on miners, it didn t cause any major damage to the industry.
While the hashrate of BTC and other cryptocurrencies sagged amid the shutdown, it recovered a few months later, as businesses were able to find new regions with acceptable conditions to resume their mining operations. Despite the event s lack of significant impact on the crypto industry, it was a sign that the role of financial regulators worldwide is becoming increasingly important in crypto.
How the future looks for Crypto?
When NFTs meet blockchain, a new and exciting era ushers in, with gamers growing into critical roles. The majority of the Free NFT Games promise a 3+ digit percentage of return on investment “looks promising“.
New trends appeared in the industry that served as catalysts for crypto adoption among the mainstream audience. The trend in multinational companies like Meta after rebranding, the high popularity of digital art, and the hype around NFTs brought new participants to the market. As a result, established blockchain projects have rushed to create the technological conditions for this new market segment. Projects such as Avalanche, Solana, and are now actively used as the basis for NFT products and crypto metaverses.
In addition, the launch of the first Bitcoin-based ETFs in Canada and the United States has enabled classic investment companies, hedge funds, and money managers to gain exposure to the cryptocurrency market through a regulated and trustworthy asset.
While NFTs made crypto cool for the public as a Visa executive stated, the last two developments underscore the gradual connection between the digital asset and traditional finance markets.
Final Thoughts
As investment in the sector grows, blockchain project teams will receive new funding to develop their crypto solutions, improving their scalability, security, and resilience, and enter the competition phase.
Despite the local risks associated with crypto bans in some countries, financial authorities and national regulators will positively impact the market. The emergence of a transparent legal framework will acquire more institutional investors and increase market capitalization.
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