5 Factors That Could Drive the Next Crypto Bull Run

2021 is a boom year for the crypto market. This year, cryptocurrencies, blockchain and Web3 are in the spotlight. Facebook rebrands to Meta, banks enter the space, and NFTs are everywhere.

The strong bull market in 2021 can be attributed to many factors. Big brands embracing crypto have brought new legitimacy to the industry. Low interest rates amid the COVID-19 pandemic have led to inflation concerns. As a result, investors have turned to alternative investment types such as cryptocurrencies. During the COVID-19 pandemic and subsequent shutdown, most people are spending more time on the internet. This once-in-a-lifetime event is also a great opportunity to provide crypto momentum.

With the catastrophe running until 2022, the industry is looking for its next growth spurt. So what could fuel the next sustainable bull market?

Electronic money

bitcoin halving

The Bitcoin halving occurs every 4 years and the Bitcoin reward for miners is halved. This event is programmed into the Bitcoin protocol to limit the total supply to 21 million. The next halving will happen around April 2024.

Gracy Chen, operator of the Bitget exchange, said:

“The fact that investors are anticipating the Bitcoin halving in the second half of 2023 could be a positive market stimulus, turning the global trend upwards. After the halving, the price of Bitcoin always rises, and so do other cryptocurrencies .”

Practicality of the agreement

Experts predict that a trend is shifting towards the use of cryptocurrency protocols in the upcoming bull run. This means that investors will focus more on how cryptocurrencies are used in more realistic situations, rather than just their speculative value.

Eric Chen, CEO and co-founder of blockchain protocol Injective, said in an interview:

“While previous bull runs may have been fueled by hype and speculation surrounding certain tokens or projects, I believe investors have become smarter and sharper in their investment decisions.

As more and more people enter the market and focus their attention on cryptocurrencies, the actual value of the protocol will become more prominent. Investors will be looking for protocols that solve real-world problems and deliver tangible benefits to users. “

uncertainty and inflation

Bitcoin has gone through many phases to become the best performing asset in the world. BTC is up more than 60 percent this year, according to CoinMarketCap. William Zielke, chief revenue officer and chief marketing officer at payment service provider BitPay, said the performance against inflation may keep investors talking about cryptocurrencies.

“On a macroeconomic level, inflation is far from over, and investors continue to express caution following the Fed’s recent rate hikes. In particular, Bitcoin is seen as a hedge against inflation and escalating instability in the banking sector, so we think Part of the reason for its price increase is that investors are looking for protection. I think we will continue to see gradual adoption of crypto as the market seeks stability. The current market landscape provides a place for cryptocurrencies to re-emerge amidst such wild volatility. An opportunity to gain centrality.”

Go needle

Decentralized Physical Infrastructure Network (DePIN) is a network that uses blockchain and other decentralized technologies to manage physical infrastructure. Electric grids or transportation systems are basic examples of this type. Each device or node in the network can directly communicate with each other and share resources instead of a central authority, making the infrastructure more efficient and less prone to failure.

Max Thake, co-founder of blockchain network peaq, commented:

“While this nascent field is only just beginning to explore its true possibilities, I see a lot of people curious about it. The ability to disrupt rigid industries with little real competition has attracted a lot of attention over the past few decades. The more A growing number of projects seem eager to explore. This is a welcome development, as real-world services and value exchanges are where the true usability of blockchain comes into play, not in .jpegs transactions. The focus of DePIN is precisely on The real world, and I think their model is the best real-world opportunity for Web3 so far.”

User Design and Education

However, Markus Levin, co-founder of geospatial data company XYO, believes the industry still has a lot to prove after last year. When things stabilize and people start to believe in the space again, it will still follow the fundamentals.

“2022 has created holes in the crypto ecosystem and exposed unresolved flaws in our industry. For another bull market to hit like a hurricane, it is necessary to restore authenticity, security and sustainability in a favorable macro environment.” sex.”

“There are still two major hurdles: design and user education. Blockchain is supposed to be available to everyone, but special expertise and community jargon make it remote and limited to ordinary users. If we can focus on reputation and Build the infrastructure to restore trust in the sector and continue weeding out shoddy projects that lack utilities, then the bull market will be within reach. Us”.

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According to Beincrypto

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