Crypto trends in 2019 are going to shape the ecosphere, but what are they and why do they matter? Check out this post exploring our five top crypto trends in 2019.
Looking back at crypto trends in 2018
It’s important to understand where we’ve come from to know where we are going. 2018 was a challenging year for the crypto-space. Coming from the 2017 bull market, 2018 saw us come back down to earth with a bump. The strong hands, however, still remain so what do we have to look forward to in 2019.
Security Token Offerings (STOs)
2018 was the beginning of the concept of security tokens (STO). According to Nasdaq, STOs are“set to take centre stage in 2019”.
There will be increasing infrastructure for the STO such as exchanges whether this be new standalone platforms or bolt-ons to existing ones. A shift from ICO to STO is already happening. There is a growing need for an increase in safety and security which the STO model offers.
An STO allows consumers to purchase digital coins or tokens as part of a public offering. This is like the ICO model. However, unlike many ICOs, these tokens will be backed by a tangible element: assets, profits or revenue in a company.
Institutional buy in
There is a growing trend in institutional investors to become involved in the space. Rapid fluctuations in the crypto market are speculated to be ending with a more stable price trajectory.
2019 will introduce Bakkt Bitcoin Futures. This is hoped to be the gateway for institutional investors and different financial products are being developed to cater to this segment.
For further discussion on institutional buy in and how this will be facilitated through forms of cryptocurrency capital custody check out our post Institutional-Grade Custody in Crypto.
Bitcoin futures are developing
Major exchanges such as Bakkt and the NASDAQ are preparing to open futures contracts. Bakkt, owned by Intercontinental Exchange, which also owns the NYSE, is a futures trading and storage platform for crypto contracts. These will offer a new service catering to the institutional investor.
Many expected Bakkt would launch in Q4 2018, but now the date has been pencilled in mid-2019.
Stablecoins continuing to be a thing
Stablecoins will continue to be an ongoing trend in 2019 particularly with new players coming into the market such as Facebook developing it’s own stablecoin for remittances. Whether stable coins are a good thing is a point of debate, in our opinion they are fraught with issues. Want to read more then check out this post where we discuss in more detail, The problem with stable coins.
Growth in gaming
CryptoKitties proved to be a hit in 2018. Gamers are arguably a great target audience for blockchain applications like cryptocurrencies as they are used to online payments and dealing with virtual currencies that exist within a digital ecosystem.
Crypto will continue to grow into this market place which is a huge economy.
To put this into perspective, recent findings from SuperData show that the gaming industry generated $108.4 billion in revenue in 2017. Mobile games were the biggest sector, generating $59.2 billion, followed by PC games, which generated $33 billion last year.
While 2018 has been a challenging year for crypto, 2019 has the opportunity to usher in the growth of a new phase of growth.