Cryptocurrency is a subject where the majority of the people are showing high interest from the past few years. Even the small moves in the market which influences crypto prices are noticed by them. So, in this article we will be discussing the top trends which are highly responsible for influencing the crypto market over the world.
Integration of AI with crypto
Recently, Artificial Intelligence has entered the market of crypto with the launch of AI tokens. The introduction is directly influenced by the significant technological advancement. AI tokens serve several purposes such as more security with market predictions and associating itself with providing more benefits to the investors, thus positioning itself apart from the other cryptocurrencies.
If we take the data from the previous year, the market value of AI token was standing at $2.7 billion which is over $39 billion this year. In the gap of only one month this year, starting from february, the worth of the token went up to 329%.
Imposing regulations over cryptocurrencies
Talking about the crypto market, the Securities and Exchange Commision of the United States is the most active body which oversees the crypto market. The Commission has raised its voice to impose more regulation in the market to avoid fraud and scams.
Other than that, the government of each nation has imposed different rules and regulations within their boundaries. Some of them have put a complete ban, others have a partial ban. Many countries update their regulations from time to time which in result influences the crypto market to a higher degree.
Central Bank Digital Currency (CBDC)’s impact
A CBDC is nothing but a form of digital currency published by a central bank of any country and the value is decided by the central bank which is eventually equal to the fiat currency of that country.
Jamaica, Nigeria and the Bahamas are the countries who have accepted the CBDC completely and China is conducting trials for the same all over the world.
By the end of this decade, 15 retail CBDCs as well as 9 wholesale CBDCs will be functioning in full force as stated by the Bank of International Settlements.
NFTs
NFTs or Non-fungible tokens are the ones who have provided a lot of decentralized funding opinions. Some of the market analysts believe that a surge of valuation of the NFT market in the crypto world may be witnessed in the near future. The most significant sectors of crypto are backed by NFTs and also NFTs undoubtedly influence the crypto market by holding many features such as transforming sectors, taking the use of blockchain technology to the next level, and carrying out different ways of ownership. All these factors hold the capacity to make NFTs a powerful medium to transform the crypto world.
Increased Layer-2 solutions
The increased Layer-2 solutions brings a scope to reduced gas fees as well as faster confirmation times. And, the users keenly monitor the platform which offers both and they shift accordingly.
Some of the important layer-2 solutions are Optimistic Rollups, Arbitrum, Validum, rollups and many more. They help to enhance the functionality of blockchain networks. There are some limitations also such as, increased complexity, security trade-offs, Liquidity fragmentation as well as dependency on L1.
Privacy Coins
Privacy Coins are attracting more users by unveiling their features such as giving more privacy by promoting anonymity. The main feature of this type of coins is that they use cryptographic tools to blur out the transaction details.
It helps in serving those individuals who are fond of privacy. In the near future, these may get more popular as data privacy as well as security could be the significant factors influencing users to the coin.
Conclusion
After a lot of intense analysis, the exact prediction of the crypto market is not possible. Blockchain technology as well as the cryptocurrency market is continuously in demand and as the advancement in the industry increases, the unity between the both is navigating through its own way. Although, the market and the trend chart makes the average users as well as experts to stick through it and show their immense interest.