The current crypto winter seems to be a long-drawn player. After a glorious spell in the last quarter of 2021, the crypto market unleashed panic big time with a colossal crash in May 2022. While the coin prices seem to be recovering by the end of the month, June brought another crash. By the middle quarter of June, the crypto market was down to a highly disappointing $977 billion from $3 trillion in 2021. There is no need to explain why crypto investors and enthusiasts are getting more anxious each day about crypto’s future? Read more about contracts intelligents.
Would crypto be able to recover from the current slump ever? And even if it recovers, would the crypto future be able to echo the good old days? Should aspiring crypto investors be wary of investing in crypto? Does crypto have a future at all? Well, these questions about crypto’s future are certainly common. While the May crash was massive, June has brought a serious question mark about crypto's future. Read more about Multibank.io.
So, what do we have ahead for crypto? Well, according to the majority of crypto analysts, despite two successive crashes, the crypto future is not all dark and gloomy. Rather, crypto enthusiasts could look forward to brighter days in crypto ahead.
Reasons behind recent crash
We will get into the discussion about crypto's future but first let’s have a look at the major reasons that caused the crypto crash for the second time this year.
Poor market trends
It was observed in May that the crypto industry now echoes the environment or condition of the traditional finance market. For example, when tech stocks plummeted in May, crypto prices sank down too. Well, the traditional finance market has not recovered yet and it’s affecting the crypto market and crypto future as well.
Huge sell-off
The May crash has shaken down several crypto investors and for obvious reasons. Many of the investors have sold off their crypto holdings recently out of their anxiety about crypto’s future. And the sell-off has again affected the crypto prices big time.
BTC plummeting below $20K mark
Bitcoin is the king of all cryptocurrencies. If the king suffers a devastating breakdown, it’s going to roll out a catastrophic effect on the entire domain. The same had happened to the overall crypto market in June. Much to the shock of BTC experts and crypto analysts in general, BTC swooped down to even below $20K in June. BTC’s downfall surfaced up apprehension about the coin’s future and crypto future in general.
Other reasons behind questions about crypto's future after the crash are bankruptcy of a major crypto lending platform, data breach in the biggest NFT marketplace, and liquidation of a leading crypto-based hedge fund.
Crypto market is poised to rise
When it comes to the crypto’s future, well, the majority of crypto experts and analysts have offered an optimistic stance. According to them, the current crypto winter seems to be long-standing but we can hope for a stronger crypto future ahead.
Rise in value
If you are feeling apprehensive about crypto’s future, you should know that the crypto market is predicted to rise by 5x in the coming 8-9 years. Bitcoin has been projected to hit $100,000 by the end of 2022 or at least by the first quarter of 2023. The coin has started recovering after plummeting down below $20k. Ethereum, thanks to its upcoming ETH 2.0 upgrade, has been projected to touch $19 trillion+ by the year 2030.
It has also been observed that if Bitcoin manages to keep up the pace, a bunch of major altcoins too will be able to rise. According to experts, the most promising altcoins that will define crypto's future are XRP, BNB, SOL, ADA, USDT, and DOT.
Growth of crypto-based projects
Another major reason why one could be confident about a strong crypto future is the growth in crypto-exclusive use cases. Put simply, there are certain blockchain products that only use crypto as a payment mode. The two such most important names at present are Metaverse and NFT.
Both the blockchain projects are poised for a massive rise in the coming years. Since they are strictly dependent on crypto for transactions, their growth will pump up the growth of crypto as well, thereby assuring a proliferating crypto future.
The Metaverse market is estimated to reach 413 trillion in the coming 8-9 years, On the other hand, the value of NFT market is forecasted to reach $231 billion within the similar time period.
Increased adoption of crypto
If there is one thing that aspiring crypto investors want to be sure of about crypto's future, it is a massive rise in adoption. Did you know, a leading exchange has already officially predicted that Bitcoin will boast 1 billion users by the coming decade? Also, Ethereum is projected to witness increasing adoption after the complete launch of Ethereum 2.0.
Most of the new and emerging crypto projects are backed by ambitious development plans. So, promising coins like Solana, Polkadot, Cardano – or even Metaverse coins like Decentraland- carry progressive roadmaps. Their journey ahead is dotted with several successive upgrades that are designed to take their platforms and offerings to newer heights. Such strong fundamentals will invariably bring more people to these platforms, thereby assuring increasing adoption and a mighty crypto future.
Regulation will bring more adoption
Another major facet that the world is set to witness about the crypto’s future is implementation of regulation. Crypto’s infamous volatility, the reason behind the wild price swings, is mostly caused due to lack of regulation throughout the sector. But the IMF and several national governments are now increasingly putting stress on implementing regulation to take better control of the crypto future.
Regulations, if properly implemented, will bring more stability to the market, thereby assuring better protection for investors. It will eventually pull in more investors to the crypto bandwagon.
Wrapping up
While regulations are welcome, crypto regulators must take care of the fact that the rules and standards do not end up stifling the core decentralization aspect of crypto.
