As Bitcoin (BTC, +3.42%) prices are in the middle of a month-long holding system. There are a few cryptocurrency traders who seem to be confused about the future of cryptocurrency and what new thing might be coming for them.
As Bitcoin (BTC, +3.42%) prices are in the middle of a month-long holding system. There are a few cryptocurrency traders who seem to be confused about the future of cryptocurrency and what new thing might be coming for them. There is a digital asset connected with visions of a decentralized internet known in everyday form as Web 3.0 tokens.
The data received by Messari and published by Arca Chief Investment Officer Jeff Dorman presents the cryptocurrency sub-sector of “web 3.0 tokens” achieved 22% during the weekend Aug.1, getting ahead Bitcoin and most of the sub-sector such as the non-fungible tokens (NFTs). Bitcoin is considered as the biggest cryptocurrency by market value, rallied 10%. Every year tokens linked with decentralized internet applications have witnessed an average 244% rise, trailing the NFT sub-sector’s 2,726% gain all the while beating bitcoin’s 37% appreciation. Most of the important Web 3.0 coins such as Livepeer (LPT), helium (HNT) and bittorrent (BTT, +14.22%) (BTT) increased by 800% this year after. Even when the cryptocurrency markets sank in April according to Messari.
“Seeing the Web 3.0 ecosystem grow exponentially since the beginning of the year and keep the majority of their gains after the capitulation even in May is very positive for the crypto market,” Nick Mancini, a research analyst for Trade said. “Higher prices are directly linked to increased demand and expansion of services in each layer, and because of this, the ecosystem is able to continue it’s growth.” Web 3.0 is a new aspect for the internet handled by network participants all around the world and it is categorized and studies by a set of open, trust-minimized and decentralized networks and protocols giving out services such as computing, storage, bandwidth, finance and identity.
Messari’s tracker presents the web 3.0 tokens as a sub-sector with 40 coins and a huge market valuation of $25 billion without the oracle provider chainlink. It is basically associated with decentralized finance and also has a market cap of $10 billion. “Web 3 is not quite easy as DeFi is to understand, and it’s probably 12 months behind DeFi in terms of mainstream awareness,” Kyle Samani, co-founder and managing partner at Multicoin Capital said. “We expect this to change as consumer-facing applications based on NFTs, social tokens and creator monetization grow over the next 12 months such as Audius, Mirror, and many others.” The DeFi increase started a year ago and has remained strong till now. The sector’s market growth has only gone higher from $5 billion in early 2020 to over $50 billion at press time.
“No one really says that The Graph, an indexing protocol for querying networks like Ethereum and Solana and IPFS, is bad, whereas a lot of people in the existing financial system say that DeFi is bad, whereas system say that DeFi is bad,” Samani said. “So as the awareness of web 3 grows, it’s hard to see anything but general support and enthusiasm.”