What 2018 Brought To Cryptocurrency Market?
2017 can be called the golden time for the crypto market, while 2018 will be remembered as the time of unexpected decline. Due to the sharp jump in the value of the main cryptocurrencies in December 2017, the crypto market became more popular among people who had not been interested in this sphere before. However, the market was not ready for this, and since January there had been a decline, which peaked in the end of the year.
That's what it looks like to an average person who is not involved in the economic issues. Indeed, the situation is not as bad as it may seem, despite the fall in the crypto money value and the market capitalization decrease by more than 90%. The term “2018 cryptocurrency crash” shouldn't be taken as a guideline for the future. So let’s recall the positive trends that have occurred this year.
Paradigm shift in the crypto market
2018 has made adjustments to the cryptocurrency top. Ripple’s XRP token surpassed ETH in terms of the market capitalization rate and was placed second right after Bitcoin, the unchallenged leader among cryptocurrencies. But the top 5 reshuffle is much more interesting.
Since April, the EOS token has ranked fifth by the market capitalization rate. EOS is the youngest cryptocurrency that has been circulating in the market since July 2017. The EOS startup has become one of the largest and best ICO projects in history. Why is this so important? Because it demonstrates that people still actively invest in ICO and that there are many promising and profitable projects showing tangible results. EOS is a platform for creating dApps and smart contracts, a direct competitor of Ethereum.
Time for reasonable investments
The success of EOS proves that ICO campaigns are worth investing in. The ICO market has began to stabilize this year. According to the independent agency ICORating, fraudulent startups still exist, but customers have become more cautious and the cryptocurrency market regulation has tightened. The market has already had enough of scam projects, so investors now are focused not only on the idea, but also on security.
STO — Security Token Offering is gaining more and more popularity. In this case, the value of tokens is backed by securities, and not mere promises of project founders. This is definitely a step forward. Skeptics can predict a complete crash of the crypto industry, but there will always be those who will invest in it. We have already written about the best ICO projects started in 2018, and we'll keep an eye on them.
Development of blockchain technology
The popularization of cryptocurrency resulted in the increasing interest in blockchain technology. Unfortunately, this doesn't always go so well. Many projects speculate on blockchain just because this technology is one of the hottest topics these days, while in fact most of companies do not really need it.
Still, there are so many processes that can be improved with the help of this technology! Logistics and supply control, cybersecurity, data storage and processing in the financial, legal and other fields — the list is long. Some countries have already taken the first steps toward using blockchain at the state level. They are Georgia, Spain, Australia, the USA, and many others. Without cryptocurrency, there would be no blockchain, and vice versa. And the most important thing about this technology is that it has already become a part of our life and this process will definitely go on.
2018 was difficult for the crypto market, but the current period of recession should not be regarded as the total collapse. Cryptocurrencies have always been highly volatile and risky investment tools, it shouldn’t surprise you. It’s time for the downtrend. Some analysts forecast it will continue till the mid-2019. There is no need in trying to quickly get rid of crypto assets, as some investors did. Cryptocurrency is an engine of the inevitable progress, and it’s up to you to decide whether to follow it or stay behind.