7 of the Top Cryptocurrency Trends to Keep an Eye On

Cryptocurrencies have been a recurring news item in recent years. They were one of the first investments to emerge after the COVID-19 pandemic. The price of Bitcoin rose rapidly at the end of 2020, going from US$10,000 to over US$65,000 by the second half of 2021.

According to figures and experts, the future of digital currencies should be quite interesting, but it’s still somewhat unpredictable. That is one of the reasons it’s so important to monitor them. Keep reading to learn about the top trends in the crypto space:

Trend #1: The Rise of NFTs

Non-fungible tokens (NFTs) are encrypted digital assets and are one of the most exciting developments in the crypto space. NFTs are a growing trend and it’s said that the market is going to see more demand in the coming months and years. This, in turn, has caused large investors to look at this strategy as one of the most striking.

Tokenization is the process of creating digital tokens that indicate the ownership and rights over some asset that a person has. This applies to personal, real, and digital assets. Blockchains have allowed the partial purchase of properties, with legal rights, without the need to buy a complete property.

Tokenization seeks to advance to the point of being able to invest in any type of asset, making investment in an easy, simple and affordable way. Through this new methodology, it will be possible to have income from renting a fraction of ownership until you want to sell it in tokens. For investors, this could be a trend that leads to new types of profits.

Trend #2: Increased Support of the Crypto Ecosystem

The more prevalent Bitcoins and cryptocurrencies become, the more big banks and platforms begin to take interest in these investment methods. For example, PayPal has already focused its interest on investments with cryptocurrencies. Many other institutions are beginning to offer these investing methods as well.  For example, on 4/26/22, Fidelity Investments announced that they were adding Bitcoin as an investment choice in their 401k programs.  In the case of PayPal, there was a twofold increase in activity among the users who bought cryptocurrencies through the application. 

Trend #3: Increased Regulations

Although at the end of 2021 there was a great regulatory clarification regarding cryptocurrency, one of the “advantages” of this digital business is that it’s not currently regulated or tracked by the government. As a result, it facilitates freedom when it comes to investing and other financial activities.

Still, trends in the cryptocurrency community are showing that industry regulations may soon see a shift. Although Bitcoin and many other cryptocurrencies, for example, are decentralized currencies, governments are seeking ways to impose taxes and regulations on these types of investments.

Trend #4: Institutional Adoption of Bitcoin and Ethereum

Cryptocurrency adoptions increased by 880 percent in 2021. This trend has increasingly become something of a refuge against the economies of each country, the degradation of currencies, inflation, and future pandemics like the one recently experienced.

Given this data, many fintech, banks, and asset managers have competed by offering blockchain payments and investment deals. Even some world-renowned brands began to receive payments with cryptocurrencies, including Starbucks, Amazon, and Microsoft. El Salvador was the first country in the world to accept Bitcoins as currency for legal use and issues bonds that are striking for many other countries with debts in dollars. As of the summer of 2022, several other countries (and US states) are looking to add Bitcoin as a recognized and accepted alternate currency for official daily use, including the payment of taxes.

Trend #5: The Rise of Stablecoin

Stablecoin is a variation of cryptocurrency. Tether is used by 80 percent of the stablecoin market. Tether is based on blockchains where circulation tokens are backed in US dollars. However, the growth of these currencies can also come from other sources. Stablecoins join in DeFi (decentralized finance) applications given their tendency not to fluctuate much in price. This is the most stable currency that has appeared so far in this cryptocurrency trend.

Trend #6: Access to the DApps Market

Decentralized Apps are decentralized tools or applications that allow users to communicate directly with each other, usually through a blockchain. The potential market for these applications is very large, and just like cryptocurrencies, their use has increased drastically. These apps are executed on Ethereum blockchains with DeFi functionalities.

It’s estimated that around 2,000 DApps operate within the Ethereum blockchain. The current trends suggest that DApps are only likely to increase in number.

Trend #7: The Rise of Web 3.0

Web 3.0 or Web3 allows users to control their data and the decentralized use of the Internet in a secure and verifiable way. In web 3.0, there is no surveillance or censorship of any kind. Each user is free to browse as they please. However, needs have arisen with regards to issues like data hosting, management, and computing, among others.

The cybercurrencies supported in web3 include Theta, Helium, Arweave, rendering, Ocean, and Filecoin. The Web 3.0 is expected to grow significantly, benefiting investment businesses that work with cryptocurrencies and Bitcoin.

Monitor Bitcoin Trends before Investing Cryptocurrencies are the latest “It Girl” in the financial world. They are increasingly embedded in everyday life and have been the subject of many rising trends in recent years. By knowing about these trends, you can keep up with what’s happening to Bitcoin and make smart decisions surrounding your investments.

Published by Robert Ryerson

A financial professional with more than three decades of experience, Robert Ryerson works closely with clients in the Freehold, New Jersey, area to meet their financial planning needs. As a Certified Financial Planner (CFP) at New Century Planning, he focuses on retirement income planning, as well as estate administration, regularly assisting his clients with legacy and estate planning. He also advises them on health and disability insurance, including Medicare, Medicaid, and Medicare Supplement Plans. Mr. Ryerson’s many years helping his clients navigate the complexities of retirement planning gave him a deeper understanding of the healthcare costs that retirees face. In 2013, he drew upon this knowledge to co-author the book What You Don’t Know About Retirement Will Hurt You. Outside of his work at New Century Planning, Robert M. Ryerson is a regular fixture at workshops and seminars on retirement. He has delivered several keynote speeches on the often-confusing topic of required minimum distributions. Mr. Ryerson continues to share his financial expertise as a facilitator of online courses for Certified Public Accountants through The Society for Financial Awareness. In the early 2010s, Mr. Ryerson became concerned about the threat of identity theft after noting the many cybersecurity breaches suffered by major companies. He became a Certified Identity Theft Risk Management Specialist (CITRMS) in 2014. He has since taught identity theft recovery courses at local community colleges. Mr. Ryerson also wrote a book on the topic entitled What’s the Deal with Identity Theft: A Plain English Look at Our Fastest Growing Crime. A graduate of Rutgers University with a degree in economics, Mr. Ryerson began his career in the financial services industry as a stockbroker. He obtained his CFP designation in 1991 and began working as an independent financial planner a few years later. In addition, he is a notary public.

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