Inception
The crypto market has come a long way since its inception in 2009 with the creation of Bitcoin. Today, in 2024, the industry has experienced numerous ups and downs and continues to evolve at a rapid pace. As of now, the global crypto market capitalization stands at $4.3 trillion with Bitcoin leading the pack with a market dominance of approximately 45%.
Rise of decentralized finance: Follow Crypto Winter
Several events shaped the crypto industry over the past few years. Initially, the industry was a niche space with very few investors who saw the potential of digital currencies. However, in 2017, the market went through a bull run that saw Bitcoin reach all-time highs of nearly $20,000 per coin. This resulted in a frenzy of investors flocking to the market, leading to widespread adoption of cryptocurrencies.
However, the market bubble eventually burst, resulting in a crypto winter from 2018 to 2019, which saw several companies and projects shut down. However, the industry has bounced back with vigor, with more projects and companies emerging daily. The rise of decentralized finance (DeFi) has been one of the industry’s most significant breakthroughs in recent times. DeFi offers a decentralized framework that enables users to access financial services without relying on traditional finance institutions.
Resistance : The start of an inverse relationship to other markets
Currently, the decentralized nature of DeFi means that it is more resilient to potential market slumps or shutdowns by central authorities. DeFi protocols are taking over various traditional finance market sectors such as lending, borrowing, and asset management, among others. The total value locked in DeFi protocols has exceeded $100 billion since their inception in 2020.
Furthermore, the growth of cryptocurrencies has not gone unnoticed by governments. Several countries are in the process of drafting or already have enacted regulations to govern the industry. These regulations aim to provide a legal framework that promotes innovation while protecting consumers and investors from fraud and market manipulation.
In conclusion, the crypto industry has come a long way, and it is still in its infancy stage with plenty of opportunities for growth and innovation. DeFi has emerged as the most significant breakthrough in recent times, with its decentralized framework offering better efficiency, resiliency, and accessibility to financial services. As more regulations come into place, it is essential to continue promoting innovation while protecting investors and consumers’ interests.
