Reigniting the growth in cryptocurrency needs to see the next wave in crypto user demand. A positive catalyst for cryptocurrency is important to increase the numbers of users to further improve on-chain liquidity. An increase in the number of users, helps increase the speed and lower costs. To be adopted as a digital money, there is a need to see some increased retail interest to invest in the applications on the blockchain.
The design of cryptocurrency tokens is increasingly being made with an emphasis on value accumulation. Accumulation of Value in an investment at a particular time consists of all the amounts invested. This also consists of increase in value and therefore the increase in the interest earned. The value stored in the blockchains will accumulate at the base protocol layer as opposed to in the application layer.
There is an expectation that there will be an increase in retail interest in application tokens. Application Tokens are “tokens that are native to decentralized applications and have a cryptographic asset associated with their use or monetization, without locking value in its parent protocol.”
API tokens are important as it permits users to authenticate with cloud apps.
Decentralized finance eliminates the need to have a centralized finance model by enabling anyone to make use of financial services from anywhere in the world, regardless of who or where they are. DeFi applications provide users with more control over their money through personal wallets and trading services, which cater to individuals.
NFTs function like cryptographic tokens; however, unlike cryptocurrencies like Bitcoin or Ethereum, NFTs are not mutually interchangeable and therefore they are not fungible. NFTs are much like individual tokens which have valuable information stored in them. NFTs have a value that has been primarily set by the market and demand. NFTs unique data makes it easy to verify and validate ownership.
Major brands are already tapping into the power of NFTs. For instance, Louis Vuitton have partnered with Yayoi Kusama to Launch NFTs.
In commemoration of its 200th anniversary, Louis Vuitton is all set to permit buyers to convert these NFTs into physical products. Experts further predict that the Louis Vuitton X Yayoi Kusama NFT collaboration will cost nearly 4 ETH based on the costs of other luxury companies’ NFTs.
Similarly, several other brands will follow suit with NFTs.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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