Although the crypto world has existed since 2009, it really took off in the last couple of years during Bitcoin's latest bull market phase. In fact, the total market capitalization has reached around $1.2 trillion, while today, there are more than 20,000 cryptocurrencies in circulation. In this article, we will take a look at some of the biggest trends that have shaken up the crypto space and paved the way for its bright future.
Bitcoin Halving
Bitcoin halving is one of the most anticipated events not just for crypto users but also for the entire Bitcoin community. Namely, with the inception of Bitcoin in 2009, Satoshi Nakamoto devised Bitcoin halving as a preprogrammed event that cuts the inflation rate in half, and by doing that, it also cuts in half the supply of Bitcoin tokens. It is programmed to happen after 210,000 blocks are added to the network, and that process roughly takes about four years to happen.
With this event, the rate at which new Bitcoin tokens are developed slows down, and the overall supply of BTC is minimized. As a result, the price of Bitcoin increases because it relates to the relationship between market demand and supply.
As a matter of fact, Bitcoin halving has happened three times by now, and every time a bull cycle follows the halving. After the last Bitcoin halving in 2020, an incredible bull market phase swept up the entire crypto market, not just Bitcoin, as its price rose by over $60,000 in 2021. It is one of the main factors that attracted more media attention and new crypto investors.
Online Trading Sites and Boom of Crypto Projects
It goes without saying that due to the popularity of cryptocurrencies, there is a surge of new online trading sites on the market which allow users to invest in different cryptocurrencies, trade their crypto assets for fiat currencies, or exchange the fiat currencies for cryptocurrencies.
In any case, there isn't a shortage of trading platforms for different users that offer everything from educational materials to special features that will notify you if there is any notable news on the market.
In addition, new innovative crypto projects that were based on blockchain technology gained popularity during this time. For example, on Ethereum's network, Dapps and Defi coins emerged, which are much like fiat currencies but in digital versions.
Thanks to the Defi coins, you have a chance to invest in global decentralized investment products. If you're interested in buy defi coins, there are many reliable trading sites that offer this option.
Also, we need to mention NFTs, that although initially developed in 2015, gained traction in 2021. NFTs are part of the Ethereumblockchain and are designed to prove the ownership of digital assets like music, digital artwork, video games, and even stickers and GIFs. There are also many other crypto projects as well as blockchain-based solutions that are getting real-world applications in 2022.
Business Support
It's worth noting that after the bull market phase, there was a rise in businesses that started to accept crypto payments. It wasn't just easier for online businesses to integrate crypto payment solutions but actually, many famous brands, as well as brick-and-mortar stores, started to accept crypto transactions which further impacted the mainstream adoption of cryptocurrencies.
Some of the most famous brands nowadays accept crypto transactions in their digital and land-based establishments like Microsoft,Samsung Electronics Co,Overstock, PayPal, OkCupid, Twitch, AT&T, Home Depot, and many others.
Governmental Support
The popularity of Bitcoin and other cryptocurrencies didn’t go unnoticed by governments around the world that are also looking to regulate crypto. For example, El Salvador became the first country to declare Bitcoin a legal tender within its borders in June 2021. Furthermore, the United Kingdom, Denmark, Iceland, Germany, and Japan also legalized BTC transactions.
Crypto, in general, is considered legal in the EU and subject to wealth tax legislation, although this might differ from one country to another. It is an important trend that proves most countries have a positive outlook toward cryptocurrencies and want to support the growth of the crypto market.
Institutional Adoption
Retail investors are not the only ones that jumped on the crypto bandwagon; Institutional investors as well have become interested in crypto. Some of them are the Grayscale Bitcoin Trust, Galaxy Fund Management, and others. Actually, in early 2021, $15 billions of institutional assets were cryptocurrencies, and it's expected for many companies as well as institutional investors to accelerate the adoption of crypto in the mainstream. Another example would be Tesla, which invested in crypto more than $1 billion of its assets in 2021.
Final Thoughts
In conclusion, the mainstream adoption of crypto is still in its early stages, and we are yet to see what kind of results it will yield. There are many blockchain-based solutions as well as new crypto projects that will further revolutionize the market, while at the same time, its volatility is another reason why so many retail and institutional investors are interested in crypto.