Christo de Wit, Luno’s country manager for South Africa, has made ten predictions for the crypto industry in the coming decade. He expects certain trends to gain traction despite the cryptocurrency market’s historical unpredictability.
Here are his Top 10 future crypto trends:
Clearer regulatory frameworks for cryptocurrencies will be established. Governments and regulatory bodies in South Africa and globally will strive to strike a balance between investor protection, financial stability, and fostering innovation in the crypto space.
Price volatility, which has been a defining characteristic of the crypto market, will continue. The next Bitcoin halving is anticipated to occur in 2024, followed by likely halvings in 2028 and 2032. Some commentators predict a bull market, as previous halvings have been accompanied by such trends.
As regulations improve and infrastructure develops, institutional investors will increasingly be attracted to the crypto market. Cryptocurrencies will gain recognition as a legitimate asset class.
De Wit believes that in a few years, asset managers will allocate a portion of retirement funds to Bitcoin.
With the growing awareness of the environmental impact of cryptocurrency mining, the industry will focus on sustainability and green initiatives. This shift may also lead to the adoption of more proof-of-stake blockchain consensus mechanisms, which rely on a network of validators rather than miners.
Decentralized finance (DeFi) will continue expanding and innovating, offering a wide range of financial products and services such as lending, borrowing, staking, and yield farming.
The integration of artificial intelligence (AI) and blockchain technology will increase, enabling applications like AI-powered smart contracts, decentralized autonomous organizations (DAOs), and predictive analytics for crypto markets. The emergence of AI as a mainstream concept adds an interesting dynamic to the industry.
Interoperability solutions will rise as blockchain networks grow and gain adoption in traditional finance. Interoperability allows seamless communication and transactions across different blockchain platforms. True adoption occurs when individuals unknowingly use blockchain-powered apps or technologies.
The development and adoption of Central Bank Digital Currencies (CBDCs) will accelerate. As governments worldwide create their own digital currencies backed by central banks. This could have significant implications for the crypto industry as it brings digital currencies into the mainstream for citizens.
Non-fungible Tokens (NFTs) will expand beyond art and collectibles, venturing into industries like gaming, music, sports, and virtual real estate. This expansion is likely to give rise to more NFT marketplaces and platforms.