Currently, with an estimated number of 221 million users, the market cap for all cryptocurrencies is estimated at 300 billion dollars. For the last eight years, cryptocurrencies have grown hugely. This article divulges some of the current trends in the market and their chances of continuity.
What is market cap?
Market capitalization is a financial measure used in public trading firms. It is computed by multiplying the share price by the total number of outstanding shares. However, in crypto, it’s calculated by multiplying the price of virtual currencies by the number of coins in the market.
Crypto as an investment.
The price of crypto has recently been decreasing, this can be majorly due to the decline in bitcoin’s price. The volatility of crypto has been among the biggest reasons for its growing market. Investors tend to join the market when the price of a certain coin declines, after a huge number of coins have been bought by a whale the price of the coin increases and this tends to bring forth profit upon sale..
Current trends in the market.
In the last eight years crypto has evolved in many ways, let’s talk briefly about the different ways:
- Increased use of DeFi
Back in 2021 DeFi drew a considerable amount of attention, especially in relation to the crypto space. From embodying transactions to dealing(ending) with middlemen DeFi has largely grown and helped the crypto world. Its most defining x-tic is yield farming, which is similar to digital banking i.e lending assets, depositing crypto assets e.t.c
- Crypto censorship
Despite the government’s scrutiny crypto has managed to escape the excessive regulations relating to transactions. However, the means used to escape are not illegal and thus have no worries.
- Non-fungible tokens
NFTs have grown at an amazing rate in the last period of a year. Previously, they ran on only the Ethereum network but currently a few run on other chains such as Flow and Tenoz. The NFT marketplace is still growing and therefore it’s difficult to estimate its profits but it’s visible that it has contributed a great deal.
Other visible trends in the crypto world are the growth of stablecoins and the metaverse. In conclusion, the market is still growing therefore new applications are emerging and the market has no specific volatility.
Learn how to read and interpret crypto charts here.
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