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Cryptocurrency Market

Updated: Dec 10, 2021


Cryptocurrencies are systems that enable secure online payments and are denominated in terms of virtual “tokens.” Cryptocurrencies operate on the blockchain technology. Blockchain is a decentralized technology that manages and records transactions on a large number of computers. The security of this technology is part of its allure. Cryptocurrency is not regulated or tracked by any centralized authority, government, or bank.


According to CoinMarketCap.com, a market research website, over 10,000 different cryptocurrencies are publicly traded. And cryptocurrencies continue to proliferate, with funds raised via initial coin offerings or ICOs.


At the time of writing of this document, Cryptocurrency capitalization is $2.63 trillion, with trades and transaction volumes accounting for billions (USD) each day. Cryptocurrencies are becoming more accepted globally, although their proponents still face barriers.

Successful cryptocurrencies bring new technologies and innovative solutions to the market, such as how some crypto tokens have enjoyed great popularity due to their strong privacy features.


Aside from usability, the value of cryptocurrencies is mostly determined by the number of users and the volume of transactions. Currency values rise in the presence of a large number of users and a high “velocity of money.”

  • DEFI

DeFi is a blockchain-based type of finance that uses smart contracts on blockchains to deliver conventional financial instruments rather than relying on central financial intermediaries such as brokerages, exchanges, or banks. DeFi platforms allow people to lend or borrow money from others, trade cryptocurrencies, insure against threats, and earn interest in savings-like accounts.

  • NFT

Non Fungible Tokens are the tokens that can be used as digital assets. These tokens are produced cryptographically, with the main distinction being their changeable prowess. Unlike cryptocurrencies, they cannot be traded or exchanged for equivalence. This is in contrast to fungible tokens, such as cryptocurrencies, which are similar to one another and therefore can be used as a medium for commercial transactions.


The Non Fungible Token market, previously a niche for gamers and crypto enthusiasts, has reached the mainstream with major artists such as Beeple, Grimes, and Trevor Jones using NFTs for their artwork. The market has grown from a market cap of $40MM in 2018 to $330MM in 2020 and more than $2 billion estimated in the first quarter of 2021 alone.

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