Investigating the Summer’s Top Crypto Trends

The bitcoin industry constantly introduces fresh, fascinating ideas that grab the interest of investors and fans. We have seen the development of DeFi, the expansion of Solana, and the consequences of the Terra Luna failure in recent years. A number of possible topics that might present new possibilities and difficulties for the cryptocurrency sector are emerging as we look ahead to the forthcoming summer.

1. BITCOIN DEFI: BRINGING THE POTENTIAL OF DEFI TO THE BITCOIN NETWORK

Despite not often being connected to crypto trials, Bitcoin has recently been very active. It has drawn attention when average Bitcoin transaction costs increased and peaked at $19.20 per transfer.

The introduction of the Ordinals is one significant development.

On the blockchain, ordinals are a novel approach to represent bitcoin. In essence, they serve as a method of tagging each individual Satoshi, the smallest unit of Bitcoin, with a special identification number. DeFi apps on the Bitcoin network may now be more sophisticated and complicated as a result.

To establish smart contracts that can only be performed by particular people or to generate fractional ownership of Bitcoin, for instance, Ordinals might be utilized.

The topic of « Bitcoin Layer 2s » has also caused some commotion.

It is the intention of the launch of BRC-20 tokens, based on Ordinals, to imitate the fungibility of ERC-20 tokens while including distinctive features.

DeFi’s options on the Bitcoin network are virtually endless because to the combination of Ordinals and BRC-20. A large variety of novel applications might be made using these new technologies, such as:

Bitcoin fractional ownership

  • Only some people will be able to execute smart contracts
  • Bitcoin-based tokens are traded on decentralized exchanges.
  • Decentralized platforms for borrowing and lending
  • Independent insurance platforms

There are countless potential uses for these new technologies, and it won’t be long until we see them employed to develop ground-breaking new DeFi apps on the Bitcoin network.

2. LSD-FI: STAKED ASSET TOKENS’ EXPANDING ECOSYSTEM

Discussions on LSDs (fungible tokens that represent staked assets) have been going around the cryptocurrency community for a while. With approximately $17.5 billion in total value locked (TVL), these tokens have established themselves as a major force in the DeFi market. The switchover of Ethereum to Proof of Stake (PoS) consensus is largely responsible for this expansion. The momentum doesn’t seem to be slowing down.

Liquid Staking Derivatives, or LSDs for short, are a form of token that symbolizes staked bitcoin to others who are unfamiliar. They were developed by DeFi protocols, which let users stake their bitcoin without locking it up.

As a result, users may receive staking incentives while still using their bitcoin for other purposes.

On the other side, LSDfi refers to the protocols that are being added to LSDs in order to develop the ecosystem. These protocols include LSD-backed stablecoins, Upfront Yield platforms, Lido Finance, Rocket Pool, Stakefish, and several more LSD Vaults as examples. Lybra Finance, Pendle Finance, unsheth, and more projects are drawn to this developing ecosystem thanks to Ethereum’s staking rate.

Using LSDs and LSDfi has several advantages, including:

  • Earn stake rewards without staking your cryptocurrency: LSDs let you stake your cryptocurrency to receive stake rewards without staking your coin. Consequently, you are still able to trade or send money using your cryptocurrency.
  • Liquidity improvement: The cryptocurrency staked has more liquidity thanks to LSDs. The price of the cryptocurrency may be able to stabilize as a result of making it simpler for consumers to acquire and sell staked coin.
  • Risk reduction: LSDs can aid in lowering the danger associated with staking cryptocurrencies. You won’t lose your staked bitcoin in the event that a validator fails. Your staked cryptocurrency will no longer be represented by LSDs.

The use of LSDs and LSDfi does have significant hazards, though:

  • Counterparty risk: When you employ an LSDfi system, you are putting your faith in it to keep your Bitcoin and distribute your staking rewards. You risk losing your bitcoin if the protocol fails.
  • The LSDfi protocol runs the danger of being breached or going out of business. You could forfeit your LSDs or your staking rewards if this occurs.
  • Volatility: The cost of LSDs might fluctuate. This implies that if you sell your LSDs before receiving enough staking rewards to recover your initial investment, you risk losing money.

3. MEMECOIN SEASON: A SPECULATIVE FRENZY EMERGES

With the launch of $PEPE a few weeks ago, memecoin season sprang onto the scene and quickly took over the cryptocurrency Twitterverse. With a current market cap of more than $500 million, $PEPE paved the way for tokens like $BEN, $PSYOP, and $LOYAL, among others. These coins became popular by leveraging the interest raised by prominent individuals like @eth_ben and @Bitboy_Crypto.

Several variables, including the following, are fueling the current meme coin season:

  • The development of social media: Sites like Twitter and Reddit have had a significant impact on the development of meme currencies. People now find it simpler to spread knowledge about meme currencies and participate in the frenzy thanks to these sites.
  • Meme currencies have become increasingly popular as non-fungible tokens (NFTs) have become more prevalent. Digital assets known as NFTs are one-of-a-kind and irreplaceable. As a result, they are comparable to meme coins, which are similarly exclusive and irreplaceable.
  • The need for rapid profits: Meme coins have the potential to provide significant increases in a short amount of time, which appeals to many investors who are seeking quick profits. Due to this, the meme coin market has seen a lot of speculation, with many investors purchasing meme coins with the intention of subsequently selling them for a profit.

Investors have been drawn in by the promise of excitement and possible rewards even if many of these meme-coins are questionably fraudulent. People were urged to send money to a personal wallet called ben.eth during the $PSYOP presale, yet the initiative still managed to raise about $7 million. Investors looking for excitement during a period of market stagnation may be the cause of this desire for action and readiness to take chances on speculative meme-coins.

Yes, we agree that meme currencies have the potential to produce enormous rewards, but they also pose a significant danger. Meme coins’ pricing can change drastically and are frequently quite erratic. This implies that if investors purchase meme coins at the incorrect time, they risk losing a lot of money.

Meme coins are not investments, so keep that in mind. Meme coins are more akin to gambling; therefore only invest money you can afford to lose in them.

4. RIDING THE ARTIFICIAL INTELLIGENCE HYPE WITH AI COINS

The public’s interest in artificial intelligence (AI) has grown significantly. Founders are adding AI into their pitches, venture investors are thrilled about AI-focused startups, and Twitter timelines are flooded with debates about AI. Even Nvidia momentarily reached the trillion dollar mark due to the AI craze.

The present AI boom has a variety of causes. First, recent years have seen a considerable advancement in AI. On a range of tasks, such as image identification, natural language processing, and gaming, deep learning systems have outperformed humans.

Second, AI has the potential to completely transform a variety of sectors, including healthcare, manufacturing, and finance. Third, a larger spectrum of enterprises may now more easily utilize AI thanks to a recent sharp decline in the cost of creating and using it.

It is anticipated that the AI story will bleed into the cryptosphere. Numerous crypto tokens with an AI focus may gain from the current AI frenzy. These tokens include, among others:

  • The Graph (GRT) is a decentralized technology for indexing and searching data on the blockchain. Numerous AI-related projects, like DeepMind and BigChainDB, utilise it.
  • SingularityNET (AGI): SingularityNET is a decentralized market place for AI agents. It enables users to purchase and sell AI services like image recognition and natural language processing.
  • Chainlink (LINK) is a decentralized oracle network. It enables smart contracts to access information from off-chain sources, like as stock prices and weather data. Artificial intelligence models may be trained using this data.
  • AIOZ (AIOZ): AIOZ is a decentralized video streaming service. It optimizes video transmission and cuts expenses using AI.
  • DeepBrain Chain: Developed to fuel AI applications, DeepBrain Chain is a blockchain platform. Gas fees and participation in the network’s consensus process are paid for with DBC, the platform’s native coin.
  • Fetch.ai is a decentralized platform for AI applications. Its currency is the FET. To fuel the site and compensate users for their efforts, FET tokens are used.

But since many AI coins are very speculative, prudence is advised. You need to be careful to distinguish between genuine AI initiatives and those that are only rebranding to capitalize on the excitement around AI.

5. METAVERSE COINS: JOINING THE REVOLUTION IN VIRTUAL REALITY

Regarding Apple’s headset, rumours abound. The headset, code-named « N301, » is anticipated to be introduced in 2023 and is said to outperform all rival products in terms of quality and functionality. If these rumours are accurate, it is expected to spark a huge interest in virtual reality, often known as the Metaverse.

When Facebook changed its name to Meta a few years ago and declared its strategic move towards the metaverse, this idea attracted a lot of attention. Consequently, despite having no direct connection to Facebook, a number of metaverse currencies saw remarkable development.

Though it is still in its infancy, the metaverse is expanding. The market for the metaverse was estimated to be worth $27.21 billion in 2020. Its value was $39.9 billion in 2022, and by 2030, it is anticipated to have increased to $824.53 billion, with a CAGR of 39.1%.

Many tokens have a chance to profit from the metaverse. The following are some of the most well-known metaverse coins:

  • Decentraland (MANA): The Ethereum blockchain powers the virtual world of Decentraland. It enables users to purchase, sell, and develop virtual land.
  • The Sandbox (SAND): The Sandbox is a different virtual environment that is supported on the Ethereum blockchain. It enables users to produce and make money off of their experiences and games.
  • Axie Infinity (AXS): Axie Infinity is a blockchain-based game where users may earn cryptocurrency by breeding, competing against, and exchanging virtual pets.

However, with a newer and more interesting token story, emerging market participants like RNDR may turn into the following $MANA or $SAND.

The Render Network is powered by a token known as RNDR. A decentralized platform called The Render Network enables users to lease out their computer processing capacity for the rendering of 3D visuals. It serves as an excellent illustration of a metaverse currency that may profit from the metaverse’s expansion since as the metaverse gains acceptance, there will be a higher need for 3D images. As users utilize RNDR tokens to rent out processing power to produce 3D images, this might result in a spike in demand for RNDR tokens.

These are but a few of the numerous tokens that might gain from the metaverse.

Metaverse coins are a fascinating topic to follow this summer because of how virtual reality has the ability to change a variety of sectors, including gaming, entertainment, and social interactions.

Tokens made particularly for the metaverse, however, are expected to become more prevalent as the market for them expands.

CONCLUSION

It is important to proceed cautiously when dealing with these themes and narratives, even though they are ones that the cryptocurrency community finds exciting and that have the potential to change the cryptocurrency landscape this summer. Differentiating legitimate projects from frauds or overhyped rebrands is crucial since the bitcoin market may be quite unpredictable.

It’s critical to understand that the market is now facing volatility and unpredictability as we enter into the summer storylines. Therefore, taking a more cautious tack and waiting for patterns to become more apparent are entirely fine. Currently, the market is moving in choppy sideways fashion, so perhaps the best course of action is to avoid the frenzied activity of the summer.

It’s possible that as the summer progresses, new situations may occur and different themes will become more prominent. Feel free to participate and share your ideas if you have any ideas or insights on prospective stories.

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