- Top cryptomarket trends you need to know in 2018
The dynamically growing crypto currency market environment had definitely seen the real breakthrough at its ecosystem at large last year. A lot of industry experts and analytics are sure that the 2018 will bring a lot of new and revolutionary technology features as well as the development of the previously known ones. We bring you the top major trends that will be surely significant and during next following months. You should definitely keep this in mind either you’re just an investor, an ICO-project developer or a boss of a major financial company:
1 Bitcoin goes mainstream — the dominance is under threat.
The top digital coin had been the one of hottest topics last year and we surely see the Bitcoin everywhere possible in 2018. In leading world countries it will gain more popularity as a mean of payment in stores, at events and so on.
On the other hand, with crypto currency becoming more mainstream each day, the overall Bitcoin mempool is only going to become bigger each day, driving up the transaction fee even higher and generating new record profits for the miners.
During the 2017, Bitcoin’s market cap as a percentage of the total value of all cryptocurrencies dropped from over 90% at the beginning of the 2018 up to 43% now. Among the main reasons is the proliferation of different blockchain apps, and this trend is sure to continue as projects with superior technology/features gain more popularity. Bitcoin’s development, particularly in relation to the scaling issues, is too conservative due to political reasons and infighting.
As many people are anticipating Lightning Network implementation to help alleviate the transaction fees, it is very risky to relay the future of Bitcoin entirely on in — the project that started in 2015 still doesn’t have a definite timeframe for publicly launching on Bitcoin.
If the scalability of Bitcoin does not improve in 2018, it has a real risk of being overtaken by another coin. The crypto currency community and investors all over the world had already seen the ether price surge against the ETH/BTC ratio in the first days of 2018, and this might be only the start of what’s coming next.
2 The DApps upcoming revolution
The blockchain based game “CryptoKitties” done some explosive noise during the late 2017 as it managed to clog up the Ethereum network offering a rampant purchase of fluffy digital cats tied to the blockchain tech. And this particular example was a an undeniable proof that DApp’s can be mainstream popular, but it also put a highlight on how far the Ethereum network has to go if one viral game can clog up the entire Ethereum mainnet.
The 2018 will witness an explosion of number of “decentralized apps” built on Ethereum as well as other platforms heavily trying to capitalize on the hype train that “Crypto Kitties” had engaged — right now there are thousands of different decentralized applications being developed. According to State of the dApps current data, there are more than 900 dApps built on Ethereum alone already. Even if only a small fraction of the upcoming projects will rocket, we will still see a number of very popular dApps. Some of them aimed on tokenization of assets, payments & lending, insurance, gambling, and so on. With more and more functioning dApps that investors can choose to put their money in, we believe the market will have a higher bar for ICO projects in 2018. Investors will have a choice to back up the projects at more advanced stages, so the ICO projects will need to show further progress in order to compete for funding.
3 Scalability development issues
With the major popularity growth of cryptocurrencies in 2017, the number of transactions made on the blockchain had grown exponentially. As a result, there are congestion issues with the more popular blockchains such as Bitcoin and Ethereum.
Of course, Ethereum has already shown that it can handle upwards of 1 million transactions per day, but this is not going to be nearly enough when the flood of dApps begin to launch next year. There are different blockchain protocols aiming to solve the scalability issue. The ones that can solve the issue while maintaining decentralization and security will be able to gain substantial network value. For example, the SegWit2x was a proposed hard fork of the cryptocurrency Bitcoin. The implementation of Segregated Witness in August 2017 was only the first half of the so-called “New York Agreement” by which those who wanted to increase effective block size by SegWit compromised with those who wanted to increase block size by a hard fork to a larger block size.
3 Governments are getting involved and crypto currency regulation is getting tight
The crypto currencies are taking over the world by storm, and the governments all around the world had to do something in order to control things — like they always do.
However, the entire point of the new system all along was to eliminate the government from the equation at all, permitting anonymous and secure trades, exchanges, and payments. While the governments cannot control the crypto currency owners through intrusive means, they’ll sure contribute to the shifting and modeling of certain currencies in the nearest future.
It is unfortunate, but in 2017 the crypto world already saw a taste of how governmental regulations can be extremely impactful: the Chinese government’s move to ban Bitcoin exchanges in the autumn made the space temporarily reel and the regulatory ambiguity that’s been fomenting in South Korea in the first days of 2018 has all crypto currency investors scrambling.
Crypto currencies will rise for sure in the nearest future, but more regulatory turmoil is certainly coming as well for the ride.
4 More Hardforks to come
One could say that the 2017 had been the “Year of the Fork” and he would be right. The world has seen a total of 8 forks during the last 12 months in particular: theBitcoin, Bitcoin Cash, Bitcoin Gold, Super Bitcoin, Bitcoin Platinum, Bitcoin Silver, Bitcoin Uranium, Bitcoin God, & Bitcoin Diamond.
However, the very successful Bitcoin forks like Bitcoin Cash do encourage many more attempts at forking coins or “IFO’s” in 2018. These had proved the investors that forks can generate a large amount of value quickly and “Initial Fork Offerings” will become more popular than ever in 2018.
5 Advertising tech reaches new levels
We have already seen some interesting twists on traditional advertising models that step outside of the Google Adsense box and into crypto in the last months. In particular, the use of “in-browser” mining of crypto currencies while a visitor is on a particular website.
However, while it had mostly been done without the user’s knowledge it may become more popular but in the more legal way — like with the website asking “permission” first to initialize the process.
Moreover, the new advertising platforms trends like the BAT to take the lead on new and creative ways for content generators to get paid while users don’t have to be flooded with ads. This Basic Attention Token is based on the Ethereum blockchain. It’s a decentralized, transparent digital ad exchange that relies on two core parts: the Basic Attention Token (BAT) and the Brave Browser. The BAT, meanwhile, is a unit of exchange between publishers, advertisers, and users. The token is derived from or denominated by user’s attention. Attention, as mentioned above, can be defined as focused mental engagement. In this case, users are focusing on an advertisement. This leads to a transparent and efficient digital advertising market based on the blockchain. Everyone benefits from it: publishers receive more revenue because middlemen and fraud are reduced. Users who opt in receive fewer ads, but better-targeted ads, that are less prone to malware. And advertisers get better information about their spending.
6 ICO projects will spread Beyond the ETH platform
One of the factors that really led to an explosion of interest in Ethereum this year was how the Initial Coin Offering craze took off in the first half of 2017.This fundraising model fueled by Ethereum, had led to ICO mania, as investors poured money into anything and everything that was launching a new coin or token. Anyway, ICOs are slowly, but steadily begin to branch out beyond Ethereum. NEO is starting to launch ICOs now, Stratis is also a major competitor, and more is up to rise in the nearest future.
For example, the NEO platform advantages are certain it works towards developing a product for the future. NEO objective all along, while ultimately utilizing many of the same technologies as Ethereum, is to be the platform for a new smart economy. NEO uses a Byzantine Fault consensus mechanism which is an improved version of proof-of-stake.В It can process 10,000 operations per second, while Ethereum can handle only 15 transactions per second.
Anyway, it is obvious that the Ethereum status of the first mover is going to be challenged further and further.
7 Crypto exchanges issues and development innovations
Modern crypto market exchanges face a certain number of serious problems at the moment. One of main drawbacks for decentralized exchanges is the lack of liquidity compared to the more popular centralized exchanges. Moreover, a crackdown on crypto currency exchange platforms via stricter rules had been agreed by the European Union states and legislators in December 2017.
Another issue is the complexity of using the assets — multiple applications are usually required for an effective work, which is certainly time-consuming and confusing for users. The traditional existing exchanges tend to have huge commission fees which don’t incentivize the user. They also implement the new rules such as additional ID-verification and double-checking.
All these factors lead users to search for an alternative concept that will make the trading more efficient and simple to implement, as well as easy for new upcoming investors.
The Arbidex project is aimed to solve these problems right away. This platform will provide crypto currency traders with a much-needed solution by enabling them to trade via a single platform interface on different exchanges and also offering an automatic arbitrage feature.
However, most of the investors in crypto currencies have to deal with multiple exchanges and are forced to find out which one is providing the most affordable rate. Arbidex itself is a unique trading platform — the project solution eliminates the problem as it allows the client to monitor the crypto currency prices from different exchanges.
The main features of the platform are convenience and maximum utility as it connects the different exchanges on a single dashboard — so one could easily transact in the different crypto currencies at the prices which are prevailing in different exchanges. Moreover, the client would be sure that the transactions are initiated quite easily and the fees would be on the lower side.
At the moment, most number of crypto currency exchanges offer different prices. With the help of an innovative Arbidex platform, it would automatically help the client in transacting to the exchange that is more convenient and suitable for him. The commissions are also on the lower side here which would ensure that a user will be able to easily invest in crypto currencies.
Another opportunity provided by Arbidex is the arbitration feature — the user would be able to use arbitration to his advantage and easily generate a return of 3% to 4% almost instantly if the right exchanges are used and if the transactions are executed quickly.
With this platform the user can forget about exchanges registration and ID-verification. It allows buying crypto currencies quickly without having to pay a large commission fee and, as stated by the developers, it can hold up to 25 crypto currencies in its decentralized exchange.
The transactions will be more streamlined and easier to process. Arbidex will support accounts for users and view all of their holdings from multiple exchanges at one location, so utilizing the assets will be more simplified.It is known that the platform uses a Detecting Profitable Rates Algorithm (DPRA) in order to assist during the transaction process and benefit from the price difference. Users of the Arbidex can obtain a profit and feel like their assets are giving them the value they were seeking.
8 The rise of Atomic Swaps
The revolutionary atomic swaps bear the promise of being the future of decentralized crypto currency trading for many known blockchains. Some notable breakthroughs were made regarding atomic swaps in 2017, and it would be expectable if further considerable breakthroughs happen in 2018.
Essentially, atomic swaps are a way for people to swap crypto currencies directly with one another without incurring any transaction fees, and without having to rely on a Bit coin exchange or another third party to do so. Atomic swaps are very exciting in the crypto currency community because they make every crypto currency more liquid and useable. This can help to speed up adoption rates of crypto currency by the general public and enable transactions to be made more seamlessly and independently. All trading in the years to come may be decentralized, and the atomic swaps are one of the major technologies to power that reality.
9 National crypto projects go up
The rise of discussions surrounding national crypto currencies creation had also been around for some time — that means state-backed digital assets. For example, political discussions surrounding the вЂњcrypt rubleвЂќ in Russia dominated headlines in the ecosystem in the latter half of 2017. And Russia wasnвЂ™t alone — nations like Estonia and Venezuela and some in between looked at the feasibility of creating their own crypto currencies.
The main question is which nations are going to take the leap and start exploring crypto currency projects of their own first. Whether these projects will ever go anywhere is a whole different ballgame which we expect soon to see.
10 Banks will continue to lose investors money
The traditional financial institutions seen large amounts of money leaving the traditional investing world behind in order to become crypto currencies. This had left some banks doing a scramble to catch up. As everyone now wants a piece of the action and in 2018 I think we will see more and more people leaving traditional banks behind for storing their wealth and entrusting it to the blockchain.
- Date of publication:
- Fri, 02/16/2018 - 03:38
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