Despite a declining market, we are already seeing the appearance of 5317 new cryptocurrencies in 2022. More and more developers and investors seem to be embarking on the frantic race for the best crypto projects of the year! But how to explain such enthusiasm around a market that has been in a bear run for several months already? This latent optimism can be explained by many factors, but above all by the fact that crypto is still a young sector that has everything to prove.
At the moment, the trend is not favorable for the crypto sector. The market at the head kept under water by the economic context in perpetual decline on a global scale. However, many are still hopeful of a new recovery. In this article, we give you all the keys to understand why the digital currency market remains an El Dorado for new tech entrepreneurs.
Why is the crypto market so dynamic despite its bear market?
How can we explain such enthusiasm around the creation of diverse and varied projects with a declining market? Many questions remain unanswered and the world of crypto-currencies is struggling to enter the big leagues.
Cryptocurrency is not a green sector: PoS is a game changer
The crypto market is constantly changing, and theBlockchains are gradually infiltrating the global financial landscape ! But its use remains restricted by the current context. Indeed, these require a very greedy consumption of energy in order to secure the transactions. Mining farms would consume, according to the study ofHamilton Institute National University of Ireland Maynooth, the equivalent of Ireland’s total electricity consumption. There is no doubt that this factor slows fundraising in more traditional markets, which are subject to strict environmental standards. The ESG score is a relatively new concept that measures the viability of a company over the long term.
However, the crypto world is beginning its transition to a greener system with the development of solutions such as Proof of Stake. Lhe PoS system eliminates the astronomical amounts of energy to be supplied to validate a transaction. Ethereum has just begun its transformation with The Merge project, which should reduce the token’s CO2 emissions by more than 99%. It will take some time before this concept catches on across the whole crypto world even if things are done fast. Vitalik Buterin with this merger, demonstrated that even large incumbent cryptos can mutate and consolidate in changing times. Ethereum 2.0 is expected to see a rise in the next few years thanks to its founder.
And we finalized!
Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.
— vitalik.eth (@VitalikButerin) September 15, 2022
Many tokens created, but few elected
What’s good about crypto is the ease with which an entrepreneur can create his project. The “memecoins” cryptos proved to us that we could arrive with a fun project, little built and still enjoy a monster hype. With such an Eldorado, there is no doubt that entrepreneurs are flocking to this market! Especially since it is not uncommon for projects to receive huge sums for their innovative and convincing idea. However, even if launching your project is easy, drawing attention to yourself is not. A lot of crypto projects fail due to lack of investment or because of business-related errors. The number does not make the quality, and this is all the more true with the crypto world!
Battle Infinity and Tamadoge: cryptos that exploded during their pre-sale
Crypto entrepreneurs have found a way to raise astronomical sums without resorting to the big financial markets. ICOs are all the rage, and projects like Battle Infinity and Tamadoge have raised $5 million and $19 million, respectively, in just a few days. In a bear market context, these sums would be enough to turn the heads of many entrepreneurs. If you want to take advantage of the current low prices in anticipation of a potential rise, now is the time!
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A dormant market about to explode
The price of BTC is expected to rise in the coming weeks according to Van de Poppe and other analysts. Several signals suggest that BTC could make a strong comeback, most notably the Bollinger bands of Bitcoin against the Nasdaq, which are very tight. These two prices are, it seems, correlated with a rise in the price of the Nasdaq which would lead to an increase in the price of bitcoin. Indeed, in April 2021, the price of bitcoin had peaked just as the Nasdaq recorded a peak on its curve, coincidence or not? We will find out soon.
The bullish scenario is therefore very possible according to the analyses, but according to Glassnodethis is more about long-term holders and exchange buyers than the price of BTC. The hodlers, long-term investors, hope and believe in this recovery, and supply their portfolios exponentially. A faith that could be rewarded, as analysts are not hesitating to bet on a price of nearly $100,000 for BTC by 2028. An ambitious prediction that could give holders ideas… If you want to know more about the best crypto projects of the moment, go to our top detailed page by clicking here.