Let’s analyze the key trends that are driving the crypto market development today.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
4 mins read
With the crypto market experiencing a resurgence after the challenges of 2022, investors are increasingly exploring new trends and opportunities within the industry.
Here are the top five trends that are currently in focus.
Artificial intelligence (AI) has grown increasingly popular in the crypto market since the emergence of ChatGPT in 2022.
The sector has become a major focus for investors in both the equity and digital asset markets.
As a result, blockchain projects that offer AI solutions, such as those providing infrastructure for AI applications, have become the focus of investors’ attention.
Crypto traders are exploring opportunities in protocols such as Fetch.ai, a platform designed for creating and selling autonomous AI software, and Bittensor, which is focused on creating a decentralized AI industry.
Earlier this month, Fetch.ai’s native token, FET, witnessed a remarkable surge of 360% since 2023 to hit an all-time high of $2.84.
The surge was driven by a market-wide surge as Bitcoin (BTC) hit a new all-time high of over $73,000. The token recorded over 70% in weekly gains earlier this month when Fetch.AI secured advanced GPUs after successfully fundraising $100 million.
Aside from artificial intelligence, tokenizing real-world assets (RWAs), such as real estate, fine art, and credit, is becoming increasingly popular.
In recent times, interest in this asset class has surged as companies look for alternatives to provide their customers with access to product offerings outside their industry.
Banks such as HSBC have tapped into the sector to roll out their RWA product, known as “HSBC Gold Tokens”, to retail customers in Hong Kong.
Interest in this sector is expected to continue to grow as more traditional finance companies look to leverage the benefits of tokenization.
Investors are also scouting the RWA market, looking into projects such as Polymesh (POLYX), Ondo Finance (ONDO), and MANTRA (OM), hoping for explosive returns on investment.
These crypto projects currently boast a market capitalization of $479 million, $1.241 billion, and $564.86 million, respectively.
Another sector investors are currently exploring for potential good returns is DePIN (Decentralized Physical Infrastructure Networks).
For clarity, DePINs are crypto projects that build, maintain, and operate physical infrastructure in a decentralized manner.
Examples of such protocols include Filecoin and Helium. The former incentivizes users to provide storage services, while Helium focuses on incentivizing users to provide wireless network coverage.
DePINs provide an open and permissionless marketplace for infrastructure across various industries, including media, gaming, AI, and life sciences.
Restaking protocols have become popular among crypto investors looking to maximize their yields. It provides an avenue for investors to earn passive income from their crypto holdings as it involves locking up liquid staking tokens (LST) for extra yield.
Restaking simplifies the yield farming process and provides security for roll-up applications, similar to how staking provides security to layer 1 blockchains such as Ethereum (ETH).
Celestia, EigenLayer, Lido, and Rocket Pool are some projects that are leading the way in restaking protocols. For example, EigenLayer recently received a $100-million investment from venture capital firms to enhance its ecosystem.
Data availability networks are another sector that has caught investors’ interest. These platforms provide off-chain solutions for blockchains to store and verify transaction data.
Storing data on-chain can congest the blockchain and require nodes to upgrade their hardware. However, data availability networks offload data storage needs and guarantee that historical transaction data is available when required.
The sector not only helps with scalability but also keeps peer blockchain secure. The market narrative around data availability grew in 2023, mainly due to its importance in Ethereum’s scaling roadmap, and has continued to trend this year.
Projects like Syscoin (SYS) are exploring this ecosystem. SYS boasts a market capitalization of $87 million, according to data from CoinMarketCap.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
