The crypto market cap for September has risen by 2.6% despite minor swings. The Federal Open Market Committee meeting on September 20, 2023, and FTX’s announcement that it was liquidating its cryptocurrency holdings, were the two major events that everyone was watching. Token prices generally experienced considerable volatility throughout fluctuations, which is not unexpected.
Nevertheless, it has become more crucial than ever to be informed about what is occurring in and about the crypto business. The time when institutional investors only had access based on their expertise is over. Retailers included may now easily access the information and take the appropriate action to maintain a favourable portfolio.
2024 Bitcoin Halving
Simply put, Bitcoin halving refers to the practise of halving the rewards for mining new blocks. It takes place once every four years and brings about a number of significant advantages. This entails a decrease in the block creation rate as well as adjustments to the supply and demand dynamics of the token.
The general public cannot be misled into believing that the Bitcoin halving only impacts BTC. Since the majority of the funds are being diverted for gains, the consequences are amplified across the whole crypto community. This is referring to BTC making money right away following the halving process.
The process of Bitcoin halving increases the adoption of BTC, which is an important point to be aware of. Historical price trends indicate that the token increases in value, and holders who have endured adverse trends are generously rewarded.
Ahead-Looking Crypto Events
In the near future, there are a total of six events planned for October 2023. This covers events like SmartCon, ETHMilan, the Vietnam Blockchain Summit, the ETH Hangzhou Hackathon, and Lugano’s Plan Forum. There will be more crypto-related events in the fourth quarter of the year. This includes, among other things, Domain Days, World Blockchain Expo, and ITC Vegas 2023.
Collectively, they all have an impact on the market. Every event, whether it involves Web3 or blockchain, wants to share knowledge and creativity. By doing so, the developer community is given the ability to introduce more projects, and holders are given insight into the direction the ecosystem is taking.
The community gains confidence by seeing something positive being prepared in front of them, and that is what matters most.
Exchange Traded Funds, often known as crypto ETFs, are a type of financial instrument used by the global trading industry. They are reputed to provide holders with a more focused investing idea. Even now, the introduction of the Bitcoin ETF in 2021 on the New York Stock Exchange is celebrated as a significant turning point.
Crypto ETFs are becoming more popular as more people believe the product will eventually be recognised. If it is acknowledged, investors will have a roadmap for where to put their money while also receiving official approval from the appropriate authorities.
Bitcoin has already seen an impact, moving inching closer to the $30k level. This occurred at a time when ETF rumours are becoming more prevalent. The last time BTC changed hands, it traded at $28,497.60.
Increase in L2 Smart Contracts
Its Scalability is clearly increased by layer 2 solutions, also referred to as L2 solutions. Despite having the tremendous support of the community, L1 solutions have not yet succeeded in overcoming this milestone, or rather obstacle.
Scalability limitations prevent developers from releasing large-scale projects that truly demonstrate ingenuity and the greatest application of blockchain and Web3 technology, which has an impact on the entire industry.
Given that networks are becoming more conscious of community demands, L2 solutions may become more prevalent in the fourth quarter of 2023. Projects that are started today must meet future needs. Therefore, L2’s scalability will be crucial before the year is up.
Derivatives for liquid staking
Certain marketplaces offer liquid stake derivatives. The LSD, or liquid staking derivatives, allow users to stake their ETH and receive yield with a tokenized IOU. They are identical to ETH in that they can both be bought, sold, exchanged, and used in DeFi apps.
LSD carries the risk of losing the possibility to make money, despite sounding exciting. Experts that concur that DAO tokens don’t signify ownership or give the holder the right to profit sharing have said the same thing. They are proxy investments, and the performance of the platform affects how well they perform.
Real-World Asset Tokenization
The sector of worldwide illiquid asset tokenization is thought to be worth $16 trillion. This figure has been proposed by BCG analysts from Boston. The industry has till the end of this decade to reach this milestone, according to the prediction.
It is gaining traction because most pilot programs have been successful and there are now clearer regulatory guidelines.
In contrast to unsustainable yields in DeFi, decentralised finance, they fetch actual returns. Because it is simpler to explain to the community where the yield is coming from, RWAs are also gaining popularity. preventing the sphere from collapsing as a result.
Such occurrences show that the cryptocurrency business is quite active. The chance of making the change at the appropriate time or allocating monies to the proper recipient when necessary can be lost by skipping a single second. Retail and institutional investors have equal access to this kind of information. It seems sense to review the modifications in order to prevent losing money.