The current state of the crypto world and 7 future trends

The rise in the market value of cryptocurrencies and the beginning of the altcoin season

In April 2021, the value of the cryptocurrency market exceeded US$2 trillion for the first time. Driven by the rising prices of Ethereum and Bitcoin, this indicator has almost doubled in a short period of time. The prices of both tokens set a record high, and the market value of Bitcoin remained at the $1 trillion mark within a week.

Bitcoin has repeatedly hit new highs

In the first quarter of this year, Bitcoin’s price return rate was 103%, and it has repeatedly set record highs. The main driving forces driving Bitcoin to reach the new milestone are:

  • Bitcoin is listed on an exchange-traded fund (ETF), introducing additional investment tools for institutional and retail investors.
  • Institutional investors and listed companies entering the market buy Bitcoin as an asset to hedge against inflation (listed companies hold 0.95% of the total supply). Coinbase’s IPO and general acceptance in the crypto market.
  • Visa, Mastercard, and PayPal use encrypted currencies and support encrypted payments.
  • Increasing inflation.

The growth of DeFi market value and the rise of DEX coins

Since the beginning of this year, the market value of DeFi has increased by 382%, reaching a record high of US$95.7 billion. The total value (TVL) locked on the Ethereum and Binance smart chains reached 72 billion U.S. dollars.

The multi-chain future of cryptocurrency

The multi-chain model continues to be popular. Therefore, the project is escaping the rising costs on the Ethereum network, exploring alternatives and new audiences.

  • Projects like SushiSwap, Tether, bZx, etc. are entering the Avalanche ecosystem.
  • Many companies are preparing to publish on Polkadot.
  • Fantom’s ecosystem is growing and welcoming new platforms.

Binance Smart Chain is slowly cannibalizing the Ethereum market

In the first quarter of 2021, Binance Smart Chain (BSC) became the second most active blockchain, with a 61% increase in user base. The blockchain is reaching its peak, which can be illustrated by many indicators:

  • The number of active wallets increased by 50% month-on-month.
  • The number of daily active wallets reached 105,000.
  • BNB, the native token of the network, has become the third largest cryptocurrency by market value and hit a record high of US$690.93.

Develop Ethereum scaling solutions

Generally speaking, the growing interest in DeFi and encryption technologies highlights the well-known problems that Ethereum has encountered in terms of scalability and network congestion.

  • Projects such as Uniswap and Synthetix chose Optimism.
  • Popular NFTs like OpenSea and Decentraland have migrated to Polygon.
  • Balancer and Cuve are working on the ZK Rollup solution.
  • xDAI attracts smaller projects.

NFT market is booming

The NFT market has exploded in early 2021. The total market value of the NFT market reached 27.9 billion US dollars, accounting for 10% of the global art market sales.

  • The largest proportion of NFT sales comes from collections and artworks such as Cryptopunk, Hashmasks, and Beeple.
  • Sports is the second largest category. Some popular projects are NBA Top Shot and Topps MLB.
  • Axie Infinity and other NFT games based on Enjin and Ultra platforms account for a large part of the sales.
  • Metaverse’s sales account for 8% of NFT’s total sales. Metaworld is another digital reality where people can play, work and buy goods.

Summary

At the beginning of this year, there were many changes in the market, bringing more users on the chain, and new blockchain use cases. However, most of the problems faced by all users and dApp developers are the same: scalability, interoperability, user experience, token price stability, etc. Considering the number of projects and new names that emerge each month, the company’s breakthrough method is to solve the problems that all market participants are trying to solve.

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Ryan Brown

Ryan Brown

An analyst who recommends high-quality digital assets