Future of crypto: Key events and trends to watch in Q4 2023

Despite small fluctuations, the crypto market cap for September has increased by 2.6%. All eyes were on two significant events – FTX announcing the liquidation of its crypto assets and the Federal Open Market Committee meeting on September 20, 2023. Fluctuations more or less included prices of tokens going through sharp volatility, which should not come as a surprise.

Nevertheless, staying updated with what is happening in the crypto industry and what is about to happen has become increasingly important. Gone are the days when institutional investors had exclusive access based on their expertise. Every type of investor, including retailers, can now access the simple information and make the right move to keep their portfolios positive.

Bitcoin Halving 2024

In simple words, Bitcoin Halving is the process in which the rewards for mining new blocks are cut in half. It happens once every four years and goes on to fetch some substantial benefits. This includes a reduction in the block production rate and changes in the token’s supply and demand mechanics.

The community cannot be mistaken by assuming that Bitcoin halving solely affects BTC. The effects amplify over the entire crypto community since most of the funds are diverted for gains. This refers to BTC gaining profits instantly after the Halving process.

One key fact to know about Bitcoin Halving is that the process boosts the adoption of BTC. Historical price trends suggest that the token gets a jump, and holders who have been through bearish trends are rewarded pretty handsomely.

Upcoming Cryptocurrency Events

In the short term, there are a total of six events that are scheduled to happen in October 2023. This includes SmartCon, ETHMilan, Vietnam Blockchain Summit, ETH Hangzhou Hackathon, Lugano’s Plan ₿ Forum, and European Blockchain Convention. More crypto events have been scheduled in the final quarter of the year. This includes ITC Vegas 2023, World Blockchain Expo, and Domain Days, among others.

All of them have a collective influence on the market. Every event – Blockchain and/or Web3 – aims at sharing knowledge and innovation. This empowers the community of developers to launch more projects and gives an idea to holders about where the ecosystem is headed.

Most importantly, it instills a sense of confidence in the community – knowing that something productive is being cooked right in front of them.

Crypto ETFs

Crypto ETFs, an acronym for Exchange Traded Funds, serve as a financial instrument for the entire trading community. They are known to give a more directed investment idea to holders. The debut of the Bitcoin ETF in 2021 on the New York Stock Exchange is still hailed as a remarkable milestone.

Crypto ETFs are gaining popularity because there is speculation that the product will ever be recognized. If it is recognized, then it means that investors have a guideline to invest more funds amid legitimate recognition from relevant authorities.

Its effect is already tangible, with Bitcoin jumping closer to the mark of $30k. This has come at a time when ETF whispers are growing louder. BTC was last seen exchanging hands at $28,497.60.

Increase in L2 Smart Contracts

Layer 2 solutions, often denoted with L2 solutions, come with a clarity of boosting scalability. This is a milestone, or rather a challenge, that L1 solutions have failed to overcome to date despite having the strong backing of the community.

It affects the industry at large because scalability restrictions take away the chance for developers to deploy large-scale projects that actually depict creativity and the best utility of blockchain and Web3 technology.

L2 solutions are on the rise, and the fourth quarter of 2023 could see more of it, considering networks are becoming aware of the demands of the community. Projects launched today have to serve the needs of the future. Hence, L2’s scalability will serve a key role before this year ends.

Liquid Staking Derivatives

Liquid Staking Derivatives are offered by select platforms. They allow users to stake their ETH and earn yield with a tokenized IOU, which in turn is known as LSD – Liquid Staking Derivatives. There is no difference between them and ETH as they, too, can be sold and traded or used in DeFi applications.

LSDs received a major boost from Shapella, a network upgrade.

While it sounds fascinating, LSD comes with the risk of losing the chance of earning profits. This has been echoed by experts who believe that DAO tokens do not represent ownership or entitle the holder to profit sharing. They are proxy investments whose success depends on how the platform is operating.

Tokenization of Real-World Assets

Tokenization of global illiquid assets is estimated to be valued at $16 trillion as an industry. Analysts from Boston Consultancy Group, BCG, have put forward this number. The prediction gives the industry till the end of this decade to achieve this milestone. It is based on the assumption that since the tokenization of real-world assets covers a wide range of offerings, including, but not limited to, real estate and government bonds, the industry is poised to reach more users and have a wider adoption.

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It is gaining momentum because now there are clearer regulatory guidelines, and most pilot projects have succeeded.

They fetch real yields in comparison to unsustainable yields in DeFi, decentralized finance. RWAs are also gaining momentum because it is easier to explain to the community where the yield is coming from. Thereby preventing the sphere from collapsing.

Conclusion

Such events signal that a lot is happening in the crypto industry. Skipping a single moment can take away the chance of making the shift at the right time or directing funds to the right destination when it has to be done. Institutional and retail investors are at par with the availability of information like this. Reviewing the updates is only logical to save oneself from losing the funds.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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