The crypto economy has been booming at lightning speed, even amidst the pandemic.
According to Business Standard, crypto attracted more money in the last year than all previous years combined. That’s a net $8 billion, nearly quadruple the earlier high of $8 billion in 2018.
In a nutshell, the future is bright for businesses and individuals that want to dive into the world of DeFi (Decentralized Finance). To help you get a glimpse of the decentralized future, we have listed down a few trends/predictions that are most likely to rule the crypto economy.
Several crypto exchanges, mining companies, and financial institutions want to offer sustainable products and services to their customers. This is because a number of potential investors have been unwilling to invest in Bitcoins due to their high carbon footprint of mining. In fact, crypto companies are also subject to different regulations because of that.
However, there are new models introduced to calculate the required climate compensation for crypto-based products. Slowly and steadily, the energy mix used for blockchain operations is becoming green, where mining companies are inclining towards renewable energy sources like geothermal or solar energy.
Governments and organizations sense that cryptocurrency is a BIG FISH. But still,they are struggling to catch it. It may only be a matter of time before crypto applications may become mainstream. In that pursuit, several meetings are being conducted to form new rules and regulations.
For instance, chief executives from six cryptocurrency companies testified before the House Financial Services Committee in December. They were invited to discuss potential paths for future legislation. While setting the right crypto standards will take time, the change is already on its way.
Ethereum is the biggest smart contract platform for crypto investments and is expected to remain the same. In fact, it may soon become the proof-of-stake consensus mechanism, where you will see more investments from the TradFi sector. In terms of price development, Ether crypto has huge potential.
Although the share of Ethereum-based DeFi and NFT is decreasing, it still carries the largest transaction volume in the world. The thing is to create more risk-free platforms like UFUND to make safe and transparent investments.
You are going to hear more about Stablecoins. Unlike Bitcoin, Stablecoins mitigate much of that volatility. Thus, they are safe investments and could play a vital role in turning cryptocurrency into something GO-TO, where you can easily conduct ordinary transactions. As an investor, you should start paying attention to this trend.
As more and more people dedicate hours to gaming, both players and creators are standing on the verge to monetize this industry. One way is through the integration of blockchain gaming, where players can mine tokens by completing certain tasks in the game. The thing is that we will need more DeFi protocols for in-game transferability.
That’s it – the key predictions that are likely to boost DeFi or the crypto economy. Hope you like our list and find it informative.