The crypto space continues to reach into new industries and markets weekly. All of this growth has improved the adoption rate of this technology. It has also increased the time it takes for new users to become well-informed. What were once simple electronic cash systems like Bitcoin now include a huge selection of decentralized services, features, and purposes.
Keeping up with the crypto trends can seem like a daunting task. However, you won’t need to quit your job or spend hours scrolling through social media channels to find the hottest trends in 2022-2023. Here are some of the top crypto trends in the market today.
On the top of the list are NFTs (non-fungible tokens). These digital assets differ from regular cryptocurrencies in that they represent unique assets. As such, they can’t be interchanged with each other without value fluctuations. These tokens have found a home within the art and gaming sectors.
There are all types of platforms that leverage this technology to improve the user experience. The first popular NFT game was Ethereum’s Cryptokitties. This title enables collectors to gather different cats and mate them to create unique combinations of “cattributes.” The rarer the kitty and the more value it held. Cryptokitties was such a hit that it eventually led to congestion issues on the Ethereum mainnet.
Today, NFT gaming is on an entirely new level. You have titles that enable users to sell and buy their in-game assets using Bitcoin and Ethereum. You also have a new class of NFTs that enable users to improve value based on their actions. These titles solve the age-old problem of locked funds and efforts in titles when gamers quit. Now they can sell their assets to the community.
There are a lot of different types of NFTs in use today. Understanding what makes each one different can help you to stay ahead of the trends and figure out what type of token best fits your trading strategy. One of the earliest forms of NFTs was real estate tokens. These tokens were designed to represent a single property, fractions of a property, or a share in a group of properties.
Real estate NFTs have some advantages and disadvantages. The main advantage is that it’s much easier to purchase a property on the blockchain as it’s the same as a token. You can send ownership internationally in minutes using most blockchains. Additionally, you can break the property into smaller values which enables more investors to participate.
The main downside to tokenized real estate is less about the technology and more about the lack of regulatory support for these systems. Real estate purchases can be a complicated process that only gets worse when attempting to make international investments. Luckily, there has been a concerted effort to bring these tokens to the market recently.
Art NFTs are on the rise. The art sector has embraced this technology for many reasons. For one, they can easily verify the validity of a token using any blockchain explorer. The art NFT market continues to expand with some artists securing millions for their creations.
Game Relevant NFTs
The main style of NFT encountered by gamers is game-relevant tokens. These are tokens that hold value based on the platform and its features. Think of special characters, vehicles, or weapons. The ways they can be used and their popularity drive their value. Notably, there are even some NFTs that can be taken across platforms and used in multiple titles.
Cryptokitties is an excellent example of this style of NFT in use today. As the Cryptokitties title gained popularity, these tokens saw a massive hike in value. Today, there are Cryptokitties worth hundreds of thousands and they continue to see value increases. Notably, Cryptokitties has inspired countless other collector-style games in the market.
Another type of NFT you should be aware of is user-relevant. These tokens can see their value increase based on your actions. You can think of gaming items like your avatar. Some gamers have spent thousands of hours building up their avatar only to let all that work remain in the title when they decide to move on. Now gamers can recoup some of their time and effort by selling their NFTs on the market.
The DeFi (decentralized finance) sector is one of the fastest-growing in the industry. DeFi refers to the removal of centralized financial providers from the equation. These networks eliminate corporations and banks and replace them with community governance and smart contracts. DeFi started as a concept and has grown into a massive billion-dollar blockchain sector.
There are many advantages that DeFi brings to the market. For one, the protocol has an open nature. Anyone can join these networks without the need to submit paperwork or meet stringent KYC regulations. As such, these networks can better serve the billions of under-banked people in the world.
Another major advantage of DeFi networks is that they’re more private. Privacy is your best defense in the digital age. You are less likely to become the victim of an attack if you practice discretion and don’t reveal your holdings to the world. Sadly, CEXs require you to provide personal information. That data then sits on the platform’s servers waiting to get hacked at a later date.
Another main advantage of DeFi is that it enables the creation of entirely new wealth generation methods. These features can include low-risk passive income streams and much more. Every trader should become familiar with a few DeFi protocols to help drive their ROIs in 2022.
The METANOMICs DeFi Ecosystem
The METANOMICs DeFi ecosystem is an advanced all-inclusive network that empowers savers and DeFi user to achieve their goals. The network includes a host of low-risk passive income features including in-wallet staking options. Staking is an ideal option because you can secure returns without risking your original asset. Additionally, staking provides more consistent returns versus trading.
DEXs (decentralized exchanges) provide crypto traders with more flexibility and privacy when compared to centralized alternatives. For example, most centralized exchanges require you to provide a lot of registration data including personal information. Once the firm has this information, you must trust that it gets stored safely. Sadly, in many instances, this isn’t the case.
Platforms like the META Exchange provide high transaction throughput on par with the NASDAQ and more privacy. To use these networks, you simply need to connect your wallet to the network. Additionally, most DEXs are non-custodial. This designation means that you don’t need to upload your funds to begin trading. Instead, you trade directly from your wallet.
Traders should have at least one DEX in their arsenal because they provide a better alternative than CEXs in terms of privacy and security. Anyone who has used centralized exchanges can attest to the frustration felt when you are unable to access your wallet due to network upgrades or outages. In most instances, these outages seem to occur during times of extreme volatility
Additionally, DEXs are safer than CEXs because they don’t have large wallets filled with thousands of users’ crypto. These community wallets have long made CEXs an easy target for hackers seeking to make out with millions in crypto. There have been billions stolen from CEXs to date and the attacks appear to be increasing in frequency.
Finding the Right DEX
There are a lot of different exchange options available today. Sorting through the endless options can be overwhelming and often leads to lackluster results. DEXs operate in a different manner and many don’t offer the same features as CEXs.
Networks like Ethereum offer traders thousands of tokens to consider but are slower and have more congestion and gas fees. Gas is the fee paid to network nodes for completing the transaction or executing a smart contract. Notably, Ethereum has record high fees due to congestion. As such, DeFi users have sought out alternatives in the market.
Another popular DeFi feature that continues to gain momentum is peer-to-peer lending services. These platforms allow people to lend out their unused cryptocurrency in a secure and decentralized manner. Most platforms leverage large lending pools to provide benefits to both borrowers and lenders.
For example, lenders gain the ability to receive repayment even if the borrower repays the loan late. Additionally, borrowers avoid any discrimination by gatekeepers. Some protocols enable borrowers or lenders to state their terms. These networks provide much-needed access to liquidity with minimal delays. In most instances, your loan gets dispersed as soon as you meet the collateral requirements.
Anyone who has requested a loan from a bank can attest to the high level of scrutiny put forth in these actions. Sadly, gatekeepers can keep you from your funding even if you meet all the financial criteria. They also gain access to funds faster than traditional systems.
These gatekeepers have been found to exercise discriminatory practices against groups they deem not worthy. History is full of lenders using their position to prevent certain citizens from being able to acquire the needed liquidity to launch businesses, acquire homes, and complete other tasks that could result in wealth generation.
A Note of Caution
The P2P lending sector is growing at an impressive rate which has caught the attention of both traders and regulators. There has been a growing call from certain parties to place these decentralized protocols under more scrutiny. These calls have heightened following the collapse of some major lenders during the last market correction.
Liquidity mining is a term used to describe the earning of rewards for providing liquidity to smart contracts or platforms. There are a growing number of DEXs integrating this feature. Liquidity mining DEXs provide you with rewards for trading. This approach helps to incentivize users and drive liquidity deeper.
DeFi High Yield Savings
Those seeking low-risk high-yield accounts don’t have to look further than the DeFi sector. The META savings account pays out 10% APY to savers. This rate is more than 20x what your bank pays you on your savings account. As such, more and more users are making the switch from centralized banking to DeFi.
DeFi bank accounts are easier to access and are open to a global audience. This openness makes them a smart choice for those who cannot access basic savings accounts due to bad credit history, locations, or lack of paperwork. These groups now have basic financial services and more thanks to the creative minds found in the blockchain sector.
Crypto Debit Cards
Over the last two years, there have been some significant developments in the way people can spend their crypto. Aside from more payment processors accepting crypto, there has been a push toward crypto debit cards. These unique protocols enable you to spend your crypto anywhere VISA is accepted.
The META1 VISA card converts the corresponding amount of crypto to fiat currency at the time of your swipe. This conversion happens in seconds and is not noticeable to the vendor. They receive fiat currency and you take your goods or services. Crypto debit cards up the convenience and usability for all users. As such, they are more popular than ever.
The main advantage of this approach is that vendors don’t need to adjust or upgrade their PoS systems to accept these payments. This strategy has broadened the use of cryptocurrencies and helped the average person begin to use these helpful assets in their daily lives. Protocols like Coinbase and META 1 provide top-notch Debit Card options in the market
Crypto Trends for 2022 and Beyond
If you want to stay ahead of the curve, you need to track the trends. The crypto space is in the midst of record expansion. The features and services listed above can be credited for much of this growth. Consequently, platforms that offer these features will also see a boost in usage and adoption moving forward.