With the Bitcoin halving just 270 days away and institutions like BlackRock showing interest in cryptocurrencies, it’s clear that the biggest bull run in crypto history is approaching. In this blog post, we will discuss the top crypto sectors to watch and explore some specific cryptocurrencies within those sectors. Please note that the following information is based on personal opinion and should not be considered financial advice.
The Rise of Specialized Layer One’s:
Traditional broad layer ones like SOL and ADA may not be as promising as they once were. Instead, a new breed of layer ones, known as application-specific layer ones, are emerging. These layer ones are built to serve specific sectors in the crypto or real world. While they may lack flexibility, they are heavily optimized for their target sectors. For example, SEI is a layer one solution built specifically for perpetual decentralized exchanges (Perp DEXs), offering almost instantaneous transactions, low latency, and front-running protection.
Perp DEXs: A Growing Sector:
Perp DEXs are decentralized exchanges that allow leveraged crypto trading. As regulation begins to restrict centralized exchanges, the volume is shifting towards decentralized exchanges, making Perp DEXs a hot sector with significant growth potential. Some projects to watch in this sector include Narwhal and VEAX.
Regulated Cryptos: Boring but Important:
Regulation is becoming increasingly prevalent in the crypto market. While it may not be the most exciting sector, regulated cryptos are attracting institutional investors and traditional finance boomers. Coreum, for example, is an enterprise-grade blockchain focusing on compliance and regulation. It aims to bridge the gap between Web 2.0 and Web 3.0 for businesses, making it a promising token in this sector. Other regulation-based tokens to watch are Venom and Concordium.
Real World Assets: Tokenizing Physical Assets:
Tokenized real world assets, such as properties, precious metals, artwork, and watches, offer investors the opportunity to own a fraction of these assets and earn APY from their rental income and appreciation. This sector has significant growth potential as crypto matures and traditional investors enter the market. Lingo and Prop Chain are two projects to keep an eye on in this sector.
Layer Twos: Scaling Layer Ones:
Layer twos have matured enough to take the place of broad layer ones. These solutions help scale layer ones by bundling transactions on the layer two and sending them to the layer one as a single transaction, improving speed and lowering fees. Ethereum, which supports layer twos, is a good bet if you believe it will rally in the next bull run. Arbitrum and Starkware are two layer twos with promising potential.
Conclusion:
As the countdown to the biggest bull run in crypto history begins, it’s crucial to be prepared and identify the top crypto sectors to watch. Application-specific layer ones, Perp DEXs, regulated cryptos, tokenized real world assets, and layer twos are all sectors worth keeping an eye on. Remember, this information is based on personal opinion and should not be considered financial advice. Stay informed, trade smart, and prepare for the exciting times ahead in the crypto market.