The market is ready for a potential surge based on ETFs’ approval and Stripe’s stablecoin payments launch.
Major crypto companies and traditional financial institutions are positioning themselves to do better. Let’s look into the top crypto trends that are moving the market.
1) Repackaging and Rebranding
As the crypto market expands, projects need to maintain their engagements. Rebranding and repackaging contribute to the creation of excitement and demand for projects. Let me give clear examples so that you can understand it well.
- From Fantom to Sonic
Fantom rebrands to Sonic. Among the new features during the rebranding is pulling an independent Layer 1 blockchain combined with a bridge to Ethereum. The new token, the $S, ensures an easy transition from $FTM (Fantom) to $S (Sonic).
Fantom detaches itself from its multichain bridge problems and forms Sonic Foundation & Labs. The rebrand will reignite market enthusiasm and generate more hype for the project.
Source: X
- Connext to Everclear
Connext is rebranding to Everclear. It is transitioning from a simple bridging infrastructure to the first clearing layer. It integrates advanced technologies like Arbitrum Orbit rollups and Eigenlayer ISM. IOTA is also concentrating on offering L2 solutions for RWAs.
What happens when rebranding and repackaging take place? Market interest grows and product prices increase for some time following rebranding. For example, the $NEXT token rose by 38% due to rebranding but then retreated from the high figure. There was also an increase in the trading volume and social media mentions of $FTM (Fantom token). As several projects adopt this strategy, tracking rebrands would offer early investment opportunities.
Source: X
2) Pro-Crypto Regulation
Regulations are also one of the significant issues in Crypto, particularly in the case of the USA. Recent trends show that the industry has accessed better regulations that could impact the market. There have also been indications of political realignments. The former president, Donald Trump, took some proper steps on cryptocurrencies. President Biden may also accept cryptocurrency donations for his campaign.
Source: X
There have also been legal successes, including the Ripple and Grayscale cases. The SEC dropping its lawsuit against Consensys is a positive indicator of crypto trends. Tokens with strong narratives will also make it to market trends because of their value.
Legal certainty creates a safer environment for digital assets. It makes the cryptocurrency market less volatile. Well-funded projects could often buy out these under-funded but valuable DeFi protocols. It will help spur more development and faster integration.
3) BTC Carry Trade: BTC ETF and BTC Shorts
Leverage is relevant in the crypto market as it can open new ways to influence the asset’s price. One of the trends that is likely to emerge is that of Bitcoin ETF and complex shorting techniques.
- BTC ETFs
The Bitcoin ETF has positive fund growth. It has experienced 19 days of constant positive fund inflow and five days of positive Bitcoin ETF flows. Bitcoin ETFs have 5.2% of all the BTC in circulation. As some would expect, these inflows have not spurred a tremendous rise in the value of Bitcoin.
Source: X
- Shorting BTC
Hedge funds are now shorting Bitcoin at record levels with CME Bitcoin futures. This strategy entails the acquisition of spot BTC and taking a short position in the futures market to profit from price disparities between the two markets.
Spot Bitcoin holdings and short selling through futures have significant impacts. If degens (crypto traders) start exiting trading longs, it might lead to the flip side of complex trades, which, in turn, may shift the market. Keep an eye on these trends because they may show dangers or opportunities for investors.
Conclusion
In Crypto, trends determine where the market is heading. Such trends include repackaging and rebranding, pro-crypto regulation, and BTC carry trades. All these trends have pros and cons, which any investor must decipher in this evolving market. The second part of this article focuses on four other emerging trends in the crypto space.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.