The market rally early 2023 is a signal that investors are getting ready to comeback crypto. Blockchain and crypto will be the key to driving the next growth cycle, CoinEx believes. So, let’s take a look at some trends that could explode in the crypto market next time.
Liquid Staking Derivatives (LSD)
As Ethereum gets close to the Shanghai upgrade in March, 12 million staked ETH will finally become withdrawable. Investors are expecting this amount of ETH to be quickly locked back into liquid staking solutions like Lido (LDO), Rocket Pool (RPL), FraxShare (FXS), leading the growth of these coins in recent times.
Artificial Intelligence (AI)
The explosion of AI, led by ChatGPT, has shown no sign of cooling down so far. The tech world, after seeing the potential of ChatGPT, believes that AI can be the next revolution after the Internet. Thus, both traditional and crypto investors are extremely interested in AI projects. However, in the crypto space, there are still no really successful AI projects. AI projects require time and huge funds to develop so investors need to consider carefully if they want to invest in this field.
Solutions on Arbitrum
Following the success of GMX, a lot of projects are also emerging on Arbitrum which hopefully can achieve the same success as GMX. Data from DeFiLlama showed that Arbitrum is currently the 4th largest blockchain in terms of the total value locked into its DeFi ecosystem as of mid-February. Furthermore, the fact that Arbitrum has not yet issued a token creates more incentive for investors to invest in this project.
NFTs
BLUR’s recent airdrop has put NFTs back on investors’ radar. However, profits in this niche still mainly come from buying and selling rather than holding NFTs.
Memecoins
Memecoins still see growth potential but much of the momentum comes from Elon Musk’s Twitter posts. Dogecoin is a typical example, its price always rallies every time it is mentioned in Elon Musk’s posts. Meanwhile, other memecoins like PEOPLE, ELON or MASK depend more on the market’s situation and the marketing efforts of the project, not on other technical factors.