The first quarter of this year clearly promises great difficulties for the world economy in the near future. This means that the difficulties will also affect such a prosperous industry as cryptocurrency. But, if we qualitatively analyze the situation and respond to crises in time, then major losses can be avoided. And with a certain amount of luck, you can count on a stable profit.
It is already safe to say that the most conservative and fundamental industries of cryptocurrencies will be the most stable. They will not be able to withstand the level of inflation that is predicted in the near future.
The whole complexity of the problem can be shown on bitcoin, as the main player in the cryptocurrency market. Today, its positions are at a record low for this year. And this is already a huge cause for concern.
What market trends should you pay attention to this year?
Of course, everyone remembers the extraordinary explosion in the cryptocurrency market last year. Unfortunately, this is not expected this year. Experts agree that the market will behave more restrained and cautious.
For investments, it is better to choose proven projects that have a stable foundation. They will also help solve the challenges faced by blockchain technology.
Solana, just belongs to the number of such cryptocurrencies. No wonder it got the nickname “Ethereum killer”. The advantages of Solana include:
very cheap and fast transactions;
high-quality development and technical support at the post-production stage;
active and effective development of blockchain bridges.
The first thing that speaks in favor of this cryptocurrency is the active growth over the past year. In the capitalization rating, Solana is now in 5th place, and it has all the potential for further growth. In addition, Solana was created on the basis of the Rust language. That allows you to organize the development of the resource at a higher level. This qualitatively distinguishes Solana from Ethereum, which is developed on Solidity.
Another modern trend worth mentioning is cryptocurrency lending. This process is essentially a method of locking up cryptocurrencies in exchange for interest. In fact, the process is similar to a bank deposit. Thus, market participants will be able to earn on rates or percentages for use.
But some areas in the crypto market will no longer bring the expected profit. They are outdated both mentally and physically and are the useless balance sheet of some established businesses.
The most obvious fall is shown by meme-cryptocurrencies. For most of them, the cost has decreased by 50-80%, which clearly indicates the decline of the industry. Experts predict a gradual fall for Shiba Inu, Dogecoin and other similar projects.
Moreover, a gradual elimination is predicted for all cryptocurrencies without a solid foundation and a high-quality technological base. Any products that are not able to solve the actual problems of the constantly changing digital world are waiting for the rapid fading and loss of their former positions.
Record inflation and the complexities of world politics make the cryptocurrency market more unpredictable than before. The US Federal Reserve is toughening its stance, and crypto industry representatives should not count on its loyalty. In order not to burn out and make a profit, you should not only study trends, but also invest only in complex and high-quality projects. Those projects that can solve the actual problems of the digital world.