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Crypto trends have seen their rise and fall over the years

Over the years, cryptocurrency has been a popular source of innovation. However, it is also a graveyard. Many projects that change the sector only shine for a moment. An associated video, a humorous ‘meme, ‘ went viral on social media, leading to the launch of this trendy coin. What can we learn from these internet sensations, and what do they have to teach us about the world of crypto?

The crypto market has witnessed dramatic shifts, with trends rising and fading over the years. From Bitcoin booms to DeFi surges, each phase has shaped the industry’s evolution. Understanding these trends helps investors navigate the ever-changing landscape.

Meme Coins: The Viral Offers That Lost Charm

Meme coins have a reputation for being highly speculative assets. Created in the culture of the internet, the likes of Dogecoin and Shiba Inu gained popularity through celebrity backing, viral memes, and social media. These coins were worth billions when investors bet on them as currencies.

But for every success story, there are dozens of failures. Projects like SafeMoon and Squid Game Token jumped on the bandwagon and disappeared soon after people lost interest or fraud allegations surfaced. Many meme coins lack utility, serving only as novelty items and potential disasters.

According to Laura Kim, a blockchain strategist, meme coins do not thrive on fundamentals. As the hype dies down, investor confidence does too.

Artworks: The NFT Boom That Collapsed

We once thought NFTs were really cool, but as time passed, they lost their charm and our confidence. Famous sales, such as the artwork by Beeple going for $69 million, incited a rush, with buyers and creators cashing in.

However, the NFT bubble burst by 2023. Trading volumes sank, and failed projects did not deliver on promises. People bought an expensive picture and a deserted virtual world and wondered if the trend would end. Though non-fungible tokens (NFTs) are still pursued by the gaming, intellectual property, and other niches, enthusiasm is starting to wane.

DeFi Hype: Unrealistic Expectations Did Not Come True

Touted as an alternative to conventional banking, Decentralized Finance (DeFi) is a new way of using money. DeFi promises users access to loans, yield farming, and trading without the need for intermediaries. Uniswap and Aave gained billions by locking in users’ capital.

However, the DeFi space was fraught with challenges. Smart contract vulnerabilities led to hacks and exploits, while unrealistic yields created unrealistic expectations. As returns declined and risks became evident, many retail investors exited the space, leading to the abandonment of several protocols.

Why Do Crypto Trends Fizzle Out?

The main reason behind the rise and fall of crypto trends is said to be overhyped marketing, no utility, and absence of planning. Many projects focus on making money quickly instead of creating long-term growth. Additionally, they prioritize speculation over addressing practical issues.

Governments have attempted to impose regulations on cryptocurrency, thereby discouraging some individuals from engaging in this activity. Also, trends can become obsolete in days or hours due to the fast-changing crypto environment.

Building Beyond the Hype: Lessons Learned

Many crypto trends have fizzled, but they provide valuable lessons for all. Crypto trends may come and go, but the lessons they impart are invaluable for the industry to learn from. Investors must exercise caution and avoid succumbing to uninformed short-term speculation.

The crypto ecosystem is getting older now and thus will figure out what’s real and what is hype. Whatever it is—meme coins or NFTs or DeFi—one thing is certain in crypto: what goes up does come down too fast.

Over time, we will discover trends that gain acceptance while others fade away.

author avatar
Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
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