2021 was one of the best years for cryptocurrencies since the beginning of their history, with all coins reaching all-time high values that skyrocketed them to previously unseen heights. However, all those gains were negated in 2022, when most crypto coins lost substantial portions of their total value.
Some shed off nearly 70%, a monumental shift that let many investors sell all their remaining assets out of fear that they’ll lose all their money. 2023 started off on a far more positive note, and investors began looking into how to buy ETH again and grow their portfolios.
Growth wasn’t as linear as investors would have hoped, and there were a lot of hurdles along the way, primarily coming from the regulatory pressures and the refusal of the SEC to approve cryptocurrency-based exchange-traded funds.
As the decision continues to be postponed but bolstered by the gains that have left their mark on the marketplace since October, investors estimate that 2024 will be a much better year for the crypto market.
Ordinals
NFTs ruled the market in the late 2010s, making the news often due to their astronomical prices. Even those who have never had anything to do with cryptocurrencies observed the trend with considerable interest. However, Bitcoin has recently adopted a similar protocol, naming it Ordinals.
It is the first of its kind for the blockchain, which has so far been more conservative and, unlike Ethereum, didn’t stray from the predetermined path of completing transactions to venture into the world of decentralized finance.
It seems things have changed now, and Bitcoin is ready to step out of its comfort zone. Many investors didn’t see Ordinals as a good thing, seeing them as a way to destabilize the market and increase volatility.
Yet, in less than twelve months since their introduction, the Bitcoin blockchain has seen inscriptions for several artworks, articles, music and sometimes even video games. There’s also a culture created around the blockchain, which will foster the development of even more projects and applications as a result.
Layer-2
While the blockchain has been around for quite some time, and there’s a chance that it will soon be used for many different purposes apart from fostering crypto transactions, there’s no denying that the system is still largely unfamiliar to members of the general public.
That is not altogether surprising since the blockchain can be quite complex, and it takes no small amount of technical skill to navigate it. But the systems have been evolving and beginning to introduce new features aiming to scale back the tasks and make the entire environment much more accessible.
Layer-2 solutions might be just the thing that finally bridges the gap between the tech and the people. By making sure that it isn’t invisible or wildly expensive, it can be employed in everyday processes.
The majority of analysts believe that the blockchain has a high likelihood of democratizing processes across several different industries and businesses, changing systems the way we know them at the moment.
It’s also important to remember that the blockchain hasn’t stopped evolving and growing. In fact, it is still developing new solutions. The implementation of EIP-4844, as part of the proto-dank sharding, is set to change the market even more.
The Cancun upgrade is currently highly anticipated and developed to remove any of the remaining obstacles that inhibit Ethereum’s mass adoption. The first and most important is the elevated price that comes with transactions.
Gas fees have been reduced before, but always manage to climb back up. The upgrade should boost scalability and efficiency, reducing transaction costs and helping retain a more mainstream audience.
Web3
The term Web3 has been widely used over the past few years. It is a complex concept involving concepts such as decentralization, the blockchain and tokens. This system would be controlled and operated by the users, but the mere idea remains nothing more than a proposed internet future. Even if the system sounds absolutely perfect in theory, the reality is more complex.
One of the main problems of tokenization is that its decentralized nature can often act as a hindrance instead of a help. This isn’t the same situation pertaining to the decentralized nature of crypto coins.
The situation becomes entirely different when it comes to the loyalty credentials of a company. Simplifying the overall user experience is something everybody is keen on, but also a move that is necessary and makes sense logically.
This includes the development and creation of semi-custodial wallets or completely banishing gas fees. There’s also the possibility of different abstraction solutions that can make the crypto environment much more accessible to the layperson.
Unless you have the necessary technical skills and are aware of the complexity of what it takes to run a blockchain, you’d probably feel quite lost having to work within the system.
Continued Decentralization
Over the past year, investors have been increasingly concerned about the possibility of blockchains and crypto ending up as decentralized systems and assets, respectively.
The decentralized nature of the blockchain is its cornerstone, the thing that attracted most traders to the system in the first place. Seeing it under attack is difficult, and that’s exactly what most investors see in the regulations and crackdowns on exchanges and banks.
A middle ground is possible, and there’s a way to ensure decentralization for some but allow those who want the different option to be able to access it. That way, the blockchain would avoid the so-called chasm of innovation that separates early adopters from mainstream markets. Creating a very complex and all-encompassing infrastructure won’t amount to much if it cannot help conduct daily tasks and help people be more efficient.
To sum up, the cryptocurrency environment is still growing and evolving. While it is no longer a newcomer on the financial scene, it still has a long way to go before becoming a well-established presence. If you’re a trader looking to grow their portfolio and get revenue, make sure to remain mindful of all the shifts and changes to determine the best times to buy or sell.
Also read: Review – Tamadoge NFT Token Game
