5 truths about the coming cryptocurrency trend

The cryptocurrency world is desperately looking for a new story that can fuel the next bull run. While in the past, the market has held on to the decentralized finance sector, NFTs and meta universes, we are now looking for other news that can make us forget the dreadful year 2022.

There are two issues under consideration: the first – the return of China, highly unlikely though, the second — is tokenized assets, which are worth talking more about.

What are tokenized assets

The basic idea is to tokenize and aggregate financial securities, real estate securities, and any other types of instruments that are traded on regulated and unregulated exchanges. This would require an infrastructure, perhaps blockchain-based, that would allow certain assets to be exchanged even between different markets.

The idea is to tokenize and combine financial securities, real estate securities, and any other type of instrument that is traded between regulated and unregulated exchanges.

The advantage of such a solution is greater efficiency, greater transparency and being in multiple jurisdictions at the same time.

For this new way of understanding financial markets to work, blockchain infrastructure will be required. It is this factor that provides some insights into the new market landscape to come.

For both L1 and L2

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The level of technological progress at this stage makes it possible to start global tokenization of assets based on existing solutions. Ethereum is understandably one of the most popular and promising for blockchain pilot launches. It is being competed with Polygon Matic and Avalanche, as well as numerous secondary networks and L2 solutions.

If no new, purpose-built blockchain is on the horizon, the protocols that are more likely to fit the purposes at hand will grow and earn.

The emergence of new infrastructures

The second important point to analyze concerns not the infrastructures that already exist, but the possibility that various banking groups, market makers, and management companies will dilute their own traditional systems with blockchain.

The risks of short-term HYIPs

We should also take into account the fact that this fashion is fickle, and there will be especially many fleeting, passing themes in the search for new themes and solutions next year. It pays to be careful with them.

The Resistance of the Traditional Market

It's unclear at this point whether stock exchanges will agree to give up control of assets (not always transparent) and how they will deal with a threat to their monopoly.

Pioneer Bets

Starting to move now means acting like pioneers who want to try to anticipate a trend that is in the process of forming.