Despite small fluctuations, the crypto market capitalization increased by 2.6% for September. All eyes were on two important events – FTX announcing the liquidation of its crypto assets and the meeting of the Federal Open Market Committee on September 20, 2023. Fluctuations more or less included prices of tokens going through sharp volatility, which is not considered a surprise should not come.
Nevertheless, staying up to date with what is happening in the crypto industry and what is going to happen has become increasingly important. Gone are the days when institutional investors had exclusive access based on their expertise. Every type of investor, including retail traders, can now access the simple information and make the right move to keep their portfolios positive.
Bitcoin Halving 2024
In simple words, Bitcoin Halving is the process in which the rewards for mining new blocks are cut in half. It happens once every four years and continues to reap significant benefits. This includes a reduction in the block production rate and changes in the token’s supply and demand mechanics.
The community cannot be mistaken in adopting this Bitcoin halving only affects BTC. The effects are amplified across the crypto community as most of the funds are diverted for profits. This refers to BTC earning profit immediately after the Halving process.
One important fact to know about Bitcoin Halving is that the process boosts the adoption of BTC. Historical price trends suggest that the token is getting a jump, and bearish trend holders are being rewarded quite handsomely.
Upcoming Cryptocurrency Events
In the short term, there are a total of six events scheduled to happen in October 2023. These include SmartCon, ETHMilan, Vietnam Blockchain Summit, ETH Hangzhou Hackathon, Lugano’s Plan ₿ Forum and European Blockchain Convention. More crypto events is scheduled in the last quarter of the year. These include ITC Vegas 2023, World Blockchain Expo and Domain Days, among others.
All of them have a collective influence on the market. Each event – Blockchain and/or Web3 – aims to share knowledge and innovation. This empowers the community of developers to launch more projects and gives an idea to holders about where the ecosystem is headed.
Most importantly, it instills a sense of trust in the community – knowing that something productive is being cooked up right in front of them.
Crypto ETFs
Crypto ETFs, an acronym for Exchange Traded Funds, serve as a financial instrument for the entire trading community. They are known to give a more targeted investment idea to holders. The debut of the Bitcoin ETF in 2021 on the New York Stock Exchange is still considered a remarkable milestone.
Crypto ETFs are becoming popular because there is speculation that the product will ever be recognized. If recognized, it means that investors have a guideline to invest more funds amid legal recognition from relevant authorities.
Its effect is already palpable, with Bitcoin jumping closer to the $30k mark. It came at a time when
ETF whispers get louder BTC was last seen exchanging hands at $28,497.60.
Increase in L2 Smart Contracts
Layer 2 solutions, often referred to as L2 solutions, come with a clear focus on promoting scalability. This is a milestone, or rather a challenge, that T1 Solutions has not been able to overcome to date, despite the strong support of the community.
This affects the industry in general because scalability limitations take away the chance for developers to deploy large-scale projects that actually showcase creativity and the best utility of blockchain and Web3 technology.
L2 solutions are on the rise, and the fourth quarter of 2023 could see more of them as networks become aware of the demands of the community. Projects launched today must meet the needs of the future. As a result, L2’s scalability will play a key role before this year ends.
Liquid strike derivatives
Liquid Staking Derivatives are offered by select platforms. It allows users to stake their ETH and earn returns with a signed IOU, which in turn is known as LSD – Liquid Staking Derivatives. There is no difference between them and ETH as they can also be sold and traded or used in DeFi applications.
LSDs got a big boost from Shapella, a network upgrade.
Although it sounds fascinating, LSD risks losing the chance to earn a profit. This has been echoed by experts who believe that DAO tokens do not represent ownership or entitle the holder to profit sharing. These are proxy investments whose success depends on how the platform works.
Tokenization of real world assets
Tokenization of global illiquid assets is estimated to be valued at $16 trillion as an industry. Analysts from Boston Consultancy Group, BCG, presented this number. The forecast gives the industry until the end of this decade to reach this milestone. This is based on the assumption that since the tokenization of real assets covers a wide range of offerings, including, but not limited to, real estate and government bonds, the industry is ready to reach more users and have a wider adoption.
It is gaining momentum because there are now clearer regulatory guidelines, and most pilot projects have succeeded.
They achieve real returns compared to unsustainable returns in DeFi, decentralized finance. RWAs are also gaining momentum because it is easier to explain to the community where the proceeds come from. This prevents the sphere from collapsing.
Closure
Such events indicate that a lot is happening in the crypto industry. Skipping a single moment can take away the chance to make the move at the right time or to send funds to the right destination when they need to be done. Institutional and retail investors are on par with the availability of information like this. Reviewing the updates is only logical to save yourself from losing the funds.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
