- 1 7 Trends That Could Reignite Crypto Growth:
- 2 1. The effective merging of Ethereum:Crypto Growth
- 3 2. Rollups will fuel the upcoming surge in crypto consumer demand.
- 4 3. Bitcoin is displaced as the most valuable cryptocurrency by ether.
- 5 4. The DeFi summer returns with DeFi on rollups.
- 6 5. As NFTs turn to gaming, play-to-own replaces play-to-earn.
- 7 6. Token economic models begin to prioritise value creation: Crypto Growth
- 8 7. The fat application thesis replaces the fat protocol thesis:
7 Trends That Could Reignite Crypto Growth:
The Merge function of the Ethereum blockchain is listed first among the investment firm Bernstein’s proposals.
Seven predictions made last week by Wall Street investment company Bernstein might rekindle the expansion of the cryptocurrency market.
1. The effective merging of Ethereum:Crypto Growth
There is still a healthy amount of doubt even though the changeover from a proof-of-work approach of network maintenance to a proof-of-stake one is just days away, according to a note last week by Bernstein analysts Gautam Chhugani and Manas Agrawal. They predict it will occur between September 10 and September 20 and that it will be a catalyst for cryptocurrency.
View more: The Ethereum Merge Final Countdown Has Officially Started
2. Rollups will fuel the upcoming surge in crypto consumer demand.
According to Chhugani and Agrawal, the number of users, on-chain liquidity, and transactions on rollups like Optimism and Arbitrum have all increased significantly, with rollup transactions now accounting for 15% to 25% of all transactions on the Ethereum blockchain. To process transactions faster and more cheaply outside of the main network, rollups are Ethereum layer 2 platforms.
3. Bitcoin is displaced as the most valuable cryptocurrency by ether.
The most common query from investors is when the market capitalization of ether (ETH) will surpass that of bitcoin (BTC), according to the note. What is more crucial for digital assets is that they develop into “an innovation-driven, structural trend rather than a macroeconomic asset class.” Ether stands for this “innovation-crypto,” and the team suggested that ETH might become the standard for digital currency if it is successful in creating the blockchain digital economy.
4. The DeFi summer returns with DeFi on rollups.
The first “DeFi summer” came in the summer of 2020, but since then, according to the analysts, layer 1 chains have outperformed the decentralized-finance sector. The Uniswap exchange currently receives roughly 10% of its fees from rollups, according to the Bernstein analysts, who noted that Layer 2 scalability has made DeFi once again inexpensive.
5. As NFTs turn to gaming, play-to-own replaces play-to-earn.
Crypto games will have a distinctive culture all their own, the Bernstein team predicted. There will be more than a million NFT (non-fungible token) avatars that can be used as playable characters in various connected crypto games. Chhugani and Agrawal believe that a significant talent shift from traditional gaming studios to Web3 game production is a strong leading indicator.
6. Token economic models begin to prioritise value creation: Crypto Growth
In contrast to the newest fast blockchain or retail meme coins, “more sustainable token designs will restore retail enthusiasm in investing in application tokens,” the experts wrote.
7. The fat application thesis replaces the fat protocol thesis:
According to the “fat protocol thesis,” blockchain value would build up at the basic protocol layer rather than the application layer. According to Bernstein, increased scalability, low transaction costs, higher user growth on rollups, improved token value accrual, and retail enthusiasm to invest in applications that they use will all contribute to the rise of the “long-tail of application tokens.”
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