The past few years have been a success for the crypto industry. We saw developments like the approval of Bitcoin ETFs by the SEC (The US Securities and Exchange Commission) and Bitcoin prices soaring above the $100K mark. And as we look forward with confidence, it’s essential to understand the key trends driving the market. Below are the current crypto trends to follow:
AI in Cryptocurrency
AI has been the most impactful tech advancement in the past two or three years. Therefore, it was only a matter of time before this machine learning technology hit the crypto market. One of the most notable impacts of AI in the crypto industry is the rise of AI tokens. These digital tokens serve as a medium of exchange for AI services, like funding projects and rewarding users.
Some of the most valuable AI coins today include:
- NEAR Protocol (NEAR)
- Bittensor (TAO)
- Story (IP)
- Internet Computer (ICP)
- Render (RENDER)
- The Graph (GRT)
- Sahara AI (SAHARA)
Meanwhile, AI trading bots are also leaving their footprints in the crypto sector. Long gone are the days when investors needed to gather and process large volumes of trading data. Instead, AI bots have taken over the research work as investors handle other technicalities. However, these bots aren’t 100% accurate. Therefore, always verify the data before making a trading decision.
Widespread Crypto Payments in Business
According to a report by Buy Bitcoin Worldwide, 15,000+ businesses process digital coin transactions. Today, you can use Bitcoin (BTC) to transact with top brands like AT&T, Microsoft, and Tesla. The crypto variety is even more prevalent in the online gaming sector. You can use dozens of digital coins to purchase gaming credits and play your favorite sweepstakes game online.
So, why are many businesses leaning towards cryptocurrency payments? First of all, the increasing number of investors is too good for business owners to ignore. A recent report by Statista revealed that the number of crypto users would hit the 1 billion mark by 2024. In fact, the number of investors increased by 40 million in Q2 of 2024.
Other benefits of crypto payments in business include:
- The decentralized blockchain technology is immutable and transparent.
- Payments are faster and less costly than options like wire transfers and credit cards.
- Customers can send or receive payments without geographical restrictions.
- Payments are 24/7, supporting around-the-clock business transactions.
Stablecoins Are on the Rise
One of the main concerns for crypto investors is the unpredictable volatility of these coins. Cryptocurrency prices can change overnight, depending on factors like regulation and politics. However, Stablecoins solve this issue by pegging their values to real currencies and physical commodities. Examples include USDT and USDC, which are tied to the US dollar.
According to a report by CoinLaw, the Stablecoin market has a value exceeding $251 billion. USD Tether leads the market with a value of around $112 billion, which is around 68% of the total market value. That’s not all; the report adds that Stablecoins process between $20 and $25 billion in daily transactions. Today, these coins are favorites in countries like Argentina, Nigeria, and Vietnam.
Central Bank Digital Currencies Are a Reality
Governments’ cautious approach towards cryptos is fading fast around the world. Today, CBDCs (Central Bank Digital Currencies) are gaining momentum. These digital versions of national currencies issued by central banks are already active or in pilot stage in over 130 countries. Nigeria, for instance, launched its CBDC (eNaira) in 2021, becoming the first African country to do so.
Compared to fiat currencies, CBDCs are more beneficial for day-to-day purchases. Users can even use these coins to make government payments, including fees and taxes. In short, these coins combine the convenience of blockchain and the stability of fiat currencies. They could play a key part in the fast-rising digital economy that relies heavily on cashless payments.
Cryptocurrency Crime Isn’t Slowing Down
Let’s now switch lanes to some bad news. Reports suggest that cryptocurrency crime continues to soar at an alarming rate worldwide. A study by ChainAnalysis reveals that the cryptocurrency crime rate is 17.27% worse than in 2022, which was the worst year in cryptocurrency history. The report adds that scammers could steal more than $4.3 billion of digital assets by the end of this year.
With these alarming numbers in mind, taking proactive measures to protect your digital assets is vital. Start by using a reputable and encrypted wallet to store your coins. Use a hardware wallet (offline) if possible. On top of that, create a strong password and enable MFA (Multi-Factor Authentication) on your wallet. These are your first lines of defense in case of an attack.
Conclusion
You now know the trends making the most headlines in the crypto industry. Embracing the latest trends, such as AI bots, crypto payments, and Stablecoins, can help you milk the most value from this technology. However, if you’re an investor, use the latest security measures and understand modern scamming techniques. Remember, being proactive is the only proven solution to protecting your digital assets.
