Crypto is taking the world by storm, and chances are, you’ve heard the buzz. From Bitcoin (BTC) and Ethereum (ETH) to newer coins popping up daily, the world of virtual assets is growing fast. This surge has sparked excitement, curiosity, and even confusion.
The question in everyone’s mind is why is this happening now and what’s making people invest in crypto? To answer your questions, this guide explores the reasons behind the crypto boom today:
Donald Trump’s Market Influence
Donald Trump’s victory in the 2024 US presidential election had a huge impact in the crypto market, contributing to a recent boom in prices and interest. Here are some key reasons behind this:
Pro-Crypto Stance
During his 2024 campaign, Trump shifted from being sceptical about crypto to openly supporting them. He promised to make the US a leader in the crypto space, which has excited investors and boosted confidence in the market, including the crypto casino industry. His congress is expected to ease regulations that have previously hindered crypto growth.
Market Reactions
Following Trump’s win, BTC and other coins saw a surge in value. BTC reached record highs, climbing above $89,000 shortly after the election results were announced. Other coins, like Dogecoin (DOGE), also experienced an increase in value, reflecting the overall positive sentiment in the market.
Support From Influential Figures
Trump’s relationship with influential figures in the crypto world, such as Elon Musk, has further fueled optimism. Musk’s support for crypto, especially DOGE, has a strong community, and his backing of Trump has encouraged more investors to enter the market.
Changes In Regulation
Many in the crypto community believe that Trump’s regime will lead to a more favourable regulatory environment. Trump has expressed intentions to remove Gary Gensler, the current chair of the Securities and Exchange Commission (SEC).
Gensler is seen as a barrier to crypto innovation due to his strict regulations. This potential change in leadership is expected to open doors for new crypto products and investments.
Rise Of Decentralised Finance (DeFi)
DeFi refers to financial services that operate on blockchain tech without the need for middlemen. It makes it easier for people to access financial services, especially in areas where banks are not readily available.
Anyone with an internet connection can use DeFi platforms to lend, borrow, trade, or earn interest on their crypto assets. This inclusivity has attracted a larger number of users to the crypto space.
Many DeFi platforms also offer higher interest rates compared to banks. For instance, you can earn interest by lending your coins or providing liquidity to trading pools. This potential for better returns has drawn investors looking for new ways to grow their wealth.
Sec’s Approval Of Exchange-Traded Funds (ETFs)
On January 10, 2024, the US SEC approved BTC ETFs, which are investment funds that are traded on stock exchanges. This opened the door for more investors to enter the crypto space, making people feel more comfortable investing in ETFs because they are regulated and easier to buy than directly purchasing coins.
The approval of ETFs also adds a level of legitimacy to crypto. It shows that government agencies recognise cryptos as real investments. This increased trust encourages more people to invest in virtual assets, helping to boost prices and market activity.
Growing Investments In Non-Fungible Tokens (NFTs)
NFTs are unique virtual assets that represent ownership of a specific item, artwork, or piece of content on the blockchain. Here’s how the rise of NFTs is influencing the market:
Art And Creativity
NFTs have opened new doors for artists and creators. They can sell their digital art, music, and videos directly to buyers without a middleman. This has led to a surge in creativity, as more artists enter the space and experiment with new forms of digital expression.
High Profile Sales
Some NFTs have sold for millions of dollars, capturing public attention. These high-profile sales show that NFTs are valuable investments. When people see others making huge profits from NFTs, they become more interested in buying and investing themselves.
Community And Culture
NFTs often come with a strong community aspect. Many projects build active communities around their tokens, where members can interact, share ideas, and engage in events. This sense of belonging encourages more people to invest in NFTs and be part of a larger movement.
Widespread Adoption Of Layer 2 Solutions
Layer 2 solutions are built on top of existing blockchains (Layer 1) that help improve their performance, making transactions faster and cheaper. One of the main reasons for adopting Layer 2 solutions is scalability. Many blockchains, like ETH, can only handle a limited number of transactions per second.
This limitation leads to slow transaction times and high fees when the network is busy. Layer 2 solutions, such as rollups and state channels, allow more transactions to be processed off the main blockchain, reducing congestion.
Using Layer 2 solutions also lowers transaction fees. For instance, when you transact on Layer 2, you pay much less in fees compared to using the main blockchain. This makes it more affordable to use crypto for everyday transactions, which encourages more users to engage in the crypto ecosystem.
Coins That Took 2024 By Storm
In 2024, various coins have made headlines for their impressive performance and significant market movements. Here’s a closer look at the top two coins that have taken the market by storm:
Ethereum (ETH)
Founded in 2013 by programmer Vitalik Buterin, ETH continues to be a leading player in the crypto market. In 2024, it reached a peak price of around $4,000, marking a huge increase from previous months.
One of the reasons for this is the strong demand for decentralised finance (DeFi) and NFTs. ETH remains the main platform for the two, and as more users engage with these sectors, the demand for ETH has risen sharply.
Solana (SOL)
SOL was founded in 2017 and is widely known for its fast transaction speeds and low fees. This makes it a preferred choice for many developers building decentralised applications (dApps). SOL’s efficiency has attracted a growing number of users and projects to the platform, increasing interest and investment in the coin, and further driving its price up.
Key Ways To Take Advantage Of The Current Crypto Boom
Taking advantage of the current crypto boom is exciting and rewarding. To help you maximise this surge, here are some tips you should consider:
- Invest in established coins → Established coins like BTC and ETH have been around for a while and have a strong track record. They are often more stable compared to newer coins. Research their history, market trends, and future potential before investing. This way, you can feel more confident in your decisions and reduce the risk of losses.
- Maximise staking → Staking is a way to earn rewards by holding certain coins in a wallet. When you stake your coins, you help support the network and its operations. In return, you earn more coins over time.
- Monitor market trends → Pay attention to price movements, news, and developments in the crypto world. Use tools like charts and market analysis to spot patterns that help you predict future price changes, allowing you to make informed decisions.
As you navigate the world of crypto including the crypto casino industry, remember to research and stay cautious. Despite the current crypto boom, the market is still volatile, but with the right knowledge, you can make informed decisions.
