Bernstein, a venture company, records its thoughts, beginning with the Wall Street venture company Bernstein last week recorded seven expectations that could reignite development in crypto.
(1) The Ethereum Merge is Eeffective
Despite the shift to a proof-of-stake strategy from a proof-of-work, the crypto is only days away, a sound piece of doubt remains, Bernstein experts Gautam Chhugani and Manas Agrawal wrote in a note.
Anticipatingly, it will occur between Sept. 10 and Sept. 20, and it will be a positive catalyst for the crypto industry.
(2) Rollups to bring another Influx of Crypto User Demand
Chhugani and Agrawal say there a significant rise in user numbers, on-chain liquidity, and exchanges on rollups like Optimism and Arbitrum, with transactions on rollups are now making up approximately 15%-25% of all exchanges on the Ethereum blockchain. Rollups are Ethereum layer 2 stages that assist with handling exchanges independently from the main network to speed up and bring down costs.
(3) Ether surpasses bitcoin as the top crypto
The most posed inquiry by investors is when will the ether (ETH) market cap exceeds bitcoin's (BTC), the note mentioned. For digital assets, what is more, significant is that it turns out to be a greater amount of an innovation-driven structural trend, rather than a macroeconomic asset class.
Ether symbolizes this "innovation crypto," and if it prevails to build the blockchain digital economy, ETH could be taken on as digital money overthrowing bitcoin, the team claimed.
(4) DeFi on Rollups Returns the DeFi Summer
The mid-year of 2020 was the first "DeFi summer," from then on, the decentralized-finance space has failed to meet the expectations for layer 1 chains, according to the analyst.
Layer 2 scalability is presently making DeFi affordable once more, the Bernstein analyst stated, considering that the Uniswap exchange currently gets around 10% of its fees from rollups.
(5) NFTs Switching Play-to-Earn Games to Play-to-Own
"Crypto games will have their own unique culture," the Bernstein team proclaimed. Over one million NFTs (non-fungible tokens) avatars will become playable characters across various interoperable crypto games.
Chhugani and Agrawal are seeing a major shift in talent to Web3 game development from typical gaming studios - a solid anticipating factor to uplift crypto as they would see it.
(6) Token Economic Designs Begin to Zero in on Value Build-up
Better sustainable token designs will reattract retail interest in application token investment versus the faster blockchain or retail meme coins, the analyst predicted.
(7) Fat Application Thesis will replace Fat Protocol Thesis
The "fat protocol thesis" suggests that the value in blockchains would aggregate at the base protocol layer, as opposed to at the application layer.
Bernstein said that the "long-tail of application tokens" will develop thanks to enhanced scalability, affordable transaction costs, better development on rollups, and improved token value accumulation worth gathering and retail interest in applications that they use.
Yay!👍 We collecting more Crypto. Reshared your post🔁
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks! :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit