Despite contradictory opinions, the crypto-currencies have already reached the point when they can not be ignored. OWN and CME launched crypto-futures, the SEC and STFC are working on regulation, and virtually all mainstream publications discuss crypto-currencies in one way or another every day.
According to many, crypto-currencies will remain at least for the near future. Therefore, it is worthwhile to follow the trends in the world of digital assets. What will the space become in the future. Here are 4 trends that require attention.
More stablkoinov and increased market stability
The crypto-currency market has already gone through a lot: large hacking exchanges, investigations of regulators, bans on advertising Google, Facebook, Twitter, as well as unpredictable behavior of governments. All these factors are somehow responsible for a strong market correction and a decline in capitalization from $ 850 billion in January to $ 260 at the time of writing.
Proceeding from this, well-known economists predicted the death of the crypto currency. But they have not died yet. In fact, most experts agree on one point: Tether stubblecoin can really cause a deadly explosion.
Most crypto currency are tied to bitcoin. Strong volatility of bitcoin influences the prices of other assets. Stiblcoin has a fixed rate, which does not obey the bitcoin fluctuations. The most notable of these coins is Tether, and most exchanges offer trading pairs to USDT, equating it to the dollar.
In general, this should be a good thing, but recent discoveries pose an idea for doubt. Not so long ago it was discussed that USDT is often printed from the air in order to manipulate the prices of crypto currency. 48.8% of bitcoin growth happens in a couple of hours when new Tether is released.
Although Tether Report and Bitfinexed examined the topic in more detail and found that it was not the matter of the steeplechief. The problem is that all large exchanges use USDT, and this currency is the second largest trading volume after Bitcoin. Because of this high dependence on Tether, any suspicious activity with coins can bring down the market. Some experts predict the decline of bitcoin by 80%.
Putting more stablkoinov and reducing the dependence on Tether will reduce the potential effects of printing USDT. The stability of the market in this case will increase.
Increased bitcoin dominance
Bitcoin, no doubt, the king of the Crypto-currency – when he sneezes, all the other coins lie with the flu. Nevertheless, the dominance of military-technical cooperation is slowly declining – up to 38% at the time of writing, and this is the lowest value for all time. In January 2017, it occupied 87% of the market.
Yet some experts believe that the dominance of bitcoin will increase. Do not be surprised if its share will account for 50% of the market already in the near future. There are several key factors in this situation.
First, despite the price drops, the VTS is still more stable than other major currencies. A study by BlackRock Investment showed that bitcoin’s volatility is much lower than that of Ethereum and Ripple.
The average investor perceives bitcoin as the equivalent of all crypto currencies. This, plus comparative stability, can lead to greater market dominance.
Secondly, most Bitcoin scaling problems are solved thanks to SegWit and Lightning Network. And now transactions can be spent for a long time – but still faster than before.
Third, the dependence of altcoyins on MTC will make investors consider it as a safe depository of value, which will also lead to an increase in dominance.
Crypto currency will become more mainstream
Goldman Sachs plans to launch its bitcoin futures. The English company Crypto Facilities announced the launch of Ethereum futures.
Many believe that the launch of futures only contributed to a decline in the prices of crypto currency, because in this way institutional investors can short-circuit assets. But the researchers found that futures helped the adoption of virtual coins . In particular, the report of the Federal Reserve of San Francisco noted that derivatives in 2017 inspired many pessimists to enter the crypto-space. This means that there are more market participants.
As more and more investors understand the nature of the crypto currency, their prices will become more stable, which means that the adoption in the mainstream will increase.
The heyday of decentralized exchanges
We will soon see the heyday of decentralized exchanges. Many believe that DEX is not yet ready for mass adoption. But there are factors for a positive development of events.
First, centralized exchanges do not correspond to the purpose of crypto-currency. The key advantage of virtual coins is decentralization. It is somewhat ironic that the current ups and downs of the currency depend on centralized exchanges. Although for many people this is not a factor.
Then the fact that the popularity of the crypto currency is increasing is growing, and the number of successful attacks on the stock exchanges. Everyone knows cases with Mt.Gox, Bitfinex, Coincheck – and these are only the biggest hacking. The need for greater security will lead users to decentralized exchanges.
Large exchanges entering the decentralized services market will receive more approval from customers. Huobi recently announced plans to invest $ 100 million in its own decentralized site. The same was reported by Binance – the exchange is developing a decentralized trade resource Binance Chain.
As you can see, big players bet on DEX . Such sites will become more convenient to use, which will also lead to increased acceptance.
All these trends are worthy of attention. Most likely, they will form the development of the crypto-currency sector in the future.