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The past few months have been very exciting for the crypto market. From the growth of Bitcoin’s value, to Ethereum’s run, and everything in between, we are now approaching the last, most explosive phase of the bull market.
This cycle, however, things in the crypto market are different. From institutional investing and countries adopting Bitcoin (BTC), there are many trends to keep in mind. They could offer opportunities to enter and exit your positions, making you large amounts of profit along the way. Let’s delve into the four most important trends this quarter and set you up for a successful trading journey until the end of this year.
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1. Top Cryptocurrency Replacement for Bitcoin
The concept of a potential Ethereum (ETH) “flippening” is getting popularity as the crypto market continues to head towards new all-time highs. The recent development of Ethereum, including its latest updates and increased use cases, make Bitcoin no longer seem as the most promising cryptocurrency.
For that reason, many people invest in Ethereum, betting that it will eventually surpass Bitcoin. If such a scenario happens to come to fruition, the next question would not be if this is sustainable, but which coin will flip Bitcoin next. Hence many people buy Dogecoin, anticipating that the meme cryptocurrency will also briefly surpass Bitcoin in market cap during the peak of this cycle.
The main benefit of Bitcoin over other cryptocurrencies was disability to act as a reliable store of value. With Ethereum’s updates, and the latest market movements, we now have more data that helps us conclude that there is a potential in seeing other cryptocurrencies such as SoVs as well, if they maintain some level of centralization. That said, Bitcoin still is the only truly decentralized cryptocurrency.
2. Ethereum Is Becoming an Asymmetric Bet
As mentioned above, many believe that Ethereum could surpass, temporarily, the crypto market cap of Bitcoin. This is due to several factors that have made Ethereum much stronger over the past few months:
- Ethereum’s gradual spread as the foundational layer of everything related to Web3
- Its role in NFTs, blockchain-based games, and DeFi in general
- EIP1559, which added a fee burning mechanism to the protocol
The much-awaited ETH 2.0 upgrade that will finally make ETH deflationary, its consensus mechanism PoS, and its holders qualified for passive income through staking rewards.
For all the above reasons we believe that Ethereum should be on the radar of everyone in the current crypto market. It should be on the radar even for those who choose not to look further than Bitcoin. The popular cryptocurrency is now a great opportunity for those that missed Bitcoin early on. It could also provide high rewards for those with conviction about its future.
3. NFTs and Gamefi Increase in Importance
Here is another concept to monitor if your planning on investing in the crypto market. Speaking of Ethereum’s, let’s briefly touch upon non-fungible tokens (NFTs). The concept which started with Cryptokitties four years ago has now infiltrated multiple industries. It has completely changed the meaning of scarcity forever. NFTs have given rise to blockchain-based games, which use unique avatars and contain whole token economies, enabling players from third world countries to earn more through gaming than by having a full time job. In the meantime, popular NFTs like CryptoPunks and Bored Apes sell for six and seven figure amounts. So, where is this headed?
Many believe that NFTs and blockchain-based games are the foundation of the Metaverse. A Metaverse is a virtual world where users will be able to live, earn, and socialize. For that reason, make sure you stay up to date with the industry, and keep checking updates through social media channels and relevant publications.
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4. More Exchanges Under Investigation by Authorities
With crypto market prices increasing, so do the attempts to escape regulatory responsibilities. Money laundering, avoiding tax payments, and another multitude of reasons, have made governments more interested in investigations.
To start, Binance recently faced lots of investigations from UK authorities, as well as globally. Many found the issue to be a large drawback for the BNB token. Just a few days ago, the same happened with decentralized exchange Uniswap. The SEC is now looking into Uniswap Labs, to better understand the dynamics of the platform, the recent UNI airdrop, and how the exchange operates. Experienced investors are not worried about this as UNI could easily fork its tokens and make sure investors do not risk the value of their funds.
However, what is somewhat worrying is the investigations into USDT. USDT is a stablecoin that by many considered shady due to its huge mints, which are directly injected into Bitcoin to artificially inflate the price. Regulatory agencies looked into the coin to make sure that each USDT is backed by a real USD. However, to this day there is no public document that proves it. If artificially inflated markets continue to increase, the price of Bitcoin in the crypto market could be set for massive volatility in case a crackdown on Tether eventually occurs.
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