After a few months of all time highs, crypto markets now seem to be recovering from a couple months of decline and stagnation. Over the past month many have gone green in percentages ranging from 1 to 20. Whilst at the same time some are negative overall for the month or remain stagnant.
Will we continue to see growth? Or correction? We emphasize the importance of HODLing because the crypto market right now can go either way for some time, being in developmental stages in application and integration into the world economy at multiple levels amongst numerous projects. Cryptocurrency and Decentralized Finance are about to rock the world of commerce.
No Surprises
There are no surprises seeing the price fluctuations of Bitcoin, Ether, or any other token. After reaching higher and higher prices it’s only natural, if you examine the lifetime of Bitcoin and other networks, that there are price/value corrections. The crypto world saw gains for months straight. Bitcoin saw around a $45,000 increase from mid December 2020 to late February 2021. Coming to an all time high of almost 65,000 USD in April, 450% higher than the previous year.
Since then, BTC HODLers have watched their portfolio drop by almost half and have continued to ride the wave between the recent low of $29,300 USD and last week’s high of $42,605. At the time of writing, the price is ~$39,000 USD.
Also, with the hype surrounding cryptocurrency, networks have been innovating and growing more than ever. Projects are continuing to emerge, grow and evolve at incredible rates. The high traffic volume allows for evaluation of efficiency, strength and security of the overall system and helps to identify any inadequacies. The more these currencies and the networks behind them grow, the higher their values (face and intrinsic) will be.
The Great Shift: Coming Soon
We are still only at the cusp of integration and the all-time highs from the Spring show the potential value that these tokens and protocols hold within their practical use. Projects like Ethereum 2.0, Cardano and Bitcoin each have areas in which they are working to grow: Ethereum is switching to proof of stake. Huge for efficiency, speed and transaction fees. Cardano (ADA) is in stages of developing a fork in their network to allow the integration of smart contract technology, something like Ethereum. Bitcoin has a different problem- being well established, laws in China, where more than half of all BTC mining takes place, and other countries have made it difficult for Bitcoin mining to take place.
It’s a fascinating thing to watch during these times. There are countless numbers of projects, each having something at least variantly unique about them. As of now, it appears that we’re seeing the establishment of certain networks with varying capabilities of blockchain. Even as more and more pop up, each one is trying to find their place. In the coming future we’re going to see what’s necessary and what’s not. Some are going to get weeded out. Others are looking like they’re here to stay.
Behold, The Future
It’s already here. As these projects continue to moon onward, and the fiat currency around the globe continues to devalue, it’s inevitable. The way the economic systems of our world operate will be changed forever. It’s only a matter of time. Blockchain technology has far reaching use cases that extend to all corners of business administration and data transfer. Already, it’s evident that this technology can more easily interconnect economic activity for the local and international traders alike. Not to mention the opportunity which is offered through such technology. It is truly exciting to see the growth of what’s past and what is yet to come.
