Trend following investments are one particular of the procedures that can deliver sizeable earnings to traders. So, what exceptional trends will there be in the cryptocurrency industry in the fourth quarter of this yr? Let’s come across out with Coinlive by this post!
The four significant cryptocurrency trends proceed to drive the industry in the fourth quarter of 2023
What is the trend?
The trend is the boost in the cost of a group of tokens coming from tasks belonging to the exact same particular area. For illustration, the information that the giant Microsoft would like to shell out $ten billion to purchase back 49% of OpenAI’s shares has produced a development trend for tokens from artificial intelligence tasks in the cryptocurrency industry.
Factors influencing trends in the cryptocurrency industry
-
Economic situations: this kind of as inflation, curiosity charges and unemployment, can influence investment trends in the cryptocurrency industry. For illustration, if inflation is higher, traders will be a lot more possible to invest in cryptocurrencies to guard themselves from inflation.
-
Government rules: Government rules can have a sizeable effect on the cryptocurrency industry. For illustration, the Chinese government when banned cryptocurrency trading and mining. This pushed DEX and DeFi tokens to surge quickly just after.
-
Technological improvement: enhancements in blockchain technologies or the improvement of new cryptocurrencies, for illustration, could influence the cryptocurrency industry. For illustration: The emergence of Layer one tasks with the vision of changing Ethereum all through the prior bull run produced a solid development trend for coins in this group all through the bull industry time period (2020-2021).
-
Average: Media in the cryptocurrency industry can also have a sizeable effect on investment trends. For illustration: billionaire Elon Musk’s tweets in the time period 2020-2021 brought favourable results on the rates of tokens of memecoin tasks this kind of as DOGE, SHIBA,…
Trends that can drive the industry in the fourth quarter of 2023
LSDfi
LSDfi stands for Liquid Staking Derivatives Finance, which signifies that DeFi protocols are constructed and operate on the Liquid Staking platform. LSDfi makes it possible for end users to flexibly use their LSD assets for several unique functions, although assisting LSD tokens increase liquidity, boost capital efficiency and create earnings in the DeFi ecosystem.
LSDfi started out getting a great deal of awareness in the cryptocurrency industry in early 2023 when Ethereum launched the Shanghai Upgrade.
The complete worth of ETH stationed by means of Liquid Staking platforms is presently $18.41 billion, which is really an amazing quantity. Projects in the LSDfi section can entirely use TVL to develop new goods for the DeFi industry.
Total ETH locked in LSD protocols on October eleven, 2023 – Source: DefiLlama
According to Beconcha.ai, only 22.52% of ETH has been staked. This quantity can totally proceed to boost in the long term and develop a lot more room for LSDfi tasks.
Total ETH staked on Ethereum network on October eleven, 2023 – Source: Beaconcha.in
From the over information and facts, we can see that the LSDfi area nevertheless has a great deal of improvement probable and will possible be the key industry trend in the fourth quarter.
Some exceptional LSDfi tasks: Pendle Finance, Lybra Finance, Curve Finance,…
RWA
Real World Assets (RWA) are actual-existence assets this kind of as actual estate, automobiles, treasured metals, and so on. which are encoded on-chain as tokens or NFTs for use in DeFi.
This area has tremendous development probable, as the RWA industry accounts for the vast majority of worldwide money worth. For illustration, the worldwide actual estate industry is well worth up to $326 trillion or the worldwide gold industry is well worth $eleven.five trillion. If a really little portion of this had been tokenized and brought into DeFi, it could offer a potent enhance to the total cryptocurrency industry.
The MakerDAO lending platform is one particular of the pioneering tasks participating in the RWA area by the acquire of US corporate bonds. Investing in the RWA area has brought rather favourable outcomes for MakerDAO as a lot more than 50% of the total project’s income comes from this kind of investment.
Last July Avalanche launched an investment fund well worth $50 million in the RWA sector. This occasion could be the first stage for a wave of investment in Real World Assets in the close to long term.
Overall, RWA is an exceptionally probable area and will proceed to expand strongly in the foreseeable long term.
Some exceptional tasks in the RWA area: MakerDAO, Maple Finance,…
SocialFi
SocialFi is a mixture of social networking capabilities and decentralized finance (DeFi). SocialFi platforms offer a Web3 (decentralized) alternative for generating, managing and owning social media accounts and information.
Friend.tech is the most vital SocialFi undertaking at the minute. Friend.tech is regarded a web3 social network constructed on Base and has only opened a constrained beta edition, end users have to have an invitation code from a further consumer to log in and develop an account. Additionally, the mates.tech social network only supports mobile applications, but does not have a desktop edition. In just a handful of months, mates.tech created up to $twenty million in income.
With significant KOLs in the cryptocurrency industry nevertheless actively applying this platform for the possibility to get substantial airdrops in the long term, SocialFi will be one particular of the trends driving the industry this fourth quarter.
Retroactive
Retroactive is an ground breaking strategy to token allocation in the cryptocurrency field. Projects applying this model frequently distribute their tokens at TGE straight to end users who supported the undertaking in the early phases of improvement, rather of offering them on the industry by means of public sale.
Currently, there are some tasks that are anticipated to distribute tokens in the kind of Retroactive. In which LayerZero and zkSync are two tasks that will most possible problem tokens in Q4 2023.
-
LayerZero is an vital alternative in the blockchain area, as it aids independent blockchains interoperate although retaining decentralization, protection, and without having requiring dependency on third events. Through five funding rounds, LayerZero has raised a lot more than $260 million.
-
zkSync is a layer-two alternative belonging to the ZK-Rollups group on Ethereum created by the Matter Labs crew, with the help of several substantial investment money this kind of as a16z, OKX, Crypto.com, Bybit, ConsenSys,… .and ha ha raised complete capital raised of above $458 million.
summary
Identifying trends in the cryptocurrency industry is one particular of the exceptionally vital components that assistance traders make earnings in this probable industry. However, identifying probable long term trends is really hard and necessitates a great deal of working experience from traders. Through this post, Coinlive hopes to offer you with a baseline point of view on trends that can entice funds flows in the fourth quarter of 2023.
Note: The information and facts in this post represents Coinlive’s subjective view only and should really not be regarded investment guidance. Coinlive will not be accountable for any of your investment choices.
