Crypto Bull May Soon Arrive: Opportunities From Trending Categories
Recently, the United States announced that the CPI annual rate increased 6.4 percent before seasonal adjustment, down slightly from the figure recorded in December but still higher than expected. This indicates that the previous interest rate hikes did not yield the desired market results, and the Fed may continue with its tight monetary policy. That said, the decreasing CPI annual rate suggests that the so-called US recession might be buffered by a soft landing. Looking at the current global inflation, we can tell the trend is primarily a result of global de-dollarization. In addition, given the dollar’s close connections with currencies such as the euro, yen, and pound, the risk of inflation has spread to other countries, and the Fed’s constant rate hikes might be merely a drop in the bucket compared to its previous loose monetary policy.
What this means is that the global currency landscape may undergo significant changes in the coming years, and exchange rates will also be subject to varying degrees of volatility. However, there is no shortage of liquidity; it’s just that money is not circulating because investors worry about rising costs of living, and thus become more prudent in their investments. Back to the crypto world, the rising prices of mainstream coins and the sector rotation are both signs that global investors are ready to invest in crypto.
Despite the market excitement, due to the regulatory attention, the coin prices, which just started to recover, have been reset to their original levels, which indicates a fragile capital mix and a lack of new narratives. Moreover, the attention from regulators could reshape the trends in financial markets.
As we have discussed before, blockchain or crypto assets are likely to drive the next global economic prosperity, but that depends on the involvement of regulators. From this perspective, the crypto market will be very interesting in 2023. Next, let’s check out some of the promising categories and projects that emerged during the last market rebound.
1. Liquid Staking Derivatives (LSD)
A while back, Ethereum announced that the Shanghai Upgrade would be delayed. Meanwhile, LSD coins started falling due to the series of bans on staking by US regulators. Still, as two Ethereum upgrades are scheduled for completion this year, investors will venture into the relevant category, and the prices of project tokens such as LDO, RPL, FXS, and SSV have rebounded.
2. AI
The boom of AI coins is inseparable from the rise of ChatGPT. As we discussed before, the Internet sector has run into a bottleneck, as there hasn’t been a revolutionary product for a long time. However, ChatGPT, which is universally available, has been widely recognized and adopted by many companies since its inception. As a result, both crypto and non-crypto investors have shifted their attention to ChatGPT and AI.
For the crypto market, the rise of the AI category is just a temporary trend from the non-crypto world, and it offers no product with continued profits or technological significance. Moreover, AI projects often require enormous investments and time costs, so it remains to be seen whether the AI boom would last. Despite that, as long as ChatGPT stays popular, AI coins may continue to record decent performance.
3. Arbitrum Native
Although many copycat projects appeared after GMX went viral, it is still delivering massive returns. On February 10, GMX’s user fees reached $5.64 million, far surpassing the figure recorded on Ethereum on the same day. Later on, DeFi protocol Radiant Capital went live on Arbitrum and became another instant hit. Data from DefiLlama shows that the Arbitrum ecosystem now ranks 4th among all public chains in terms of TVL. Plus, Arbitrum has not yet issued its own token, making the chain even more appealing to investors.
4. NFT
During the recent BLUR airdrop, many investors made a fortune. Despite that, the NFT sector owes its boom to the Yuga Labs events. From the APE & BAYC merged mining in January to the Sewer Pass in February, Yuga Labs has managed to bring enormous user traffic to the NFT market. That being said, in the NFT market, profit opportunities are often associated with NFTs, rather than tokens.
5. MEME coins related to Twitter
When it comes to MEME coins, we must mention the strong consensus among investors, which might also be the impact of Elon Musk’s endorsements. DOGE is the most typical example: the DOGE price always soars whenever Elon Musk tweets about the token. Tokens like PEOPLE, ELON, and MASK, on the other hand, demonstrate strong investor consensus, and their price movements depend on overall market trends and marketing efforts, instead of technical capacity. As such, they often either surge or plummet, meaning that investors could earn massive profits but might also go bankrupt.
These tokens are all available on CoinEx, a world-renowned crypto exchange. Since its inception, the exchange has always put users first. For instance, it introduced crypto tags on the Market webpage to help investors keep track of the price movement in different categories and promptly adjust their positions.
Besides, as a long-established exchange running for over 5 years, CoinEx has never suffered any security breach. In 2022, the exchange redefined its brand slogan to “Making Crypto Trading Easier”, aiming to break free from traditional financial shackles, make the crypto market more accessible, and work as a major gateway for global crypto enthusiasts to the exciting world of crypto.
To date, the exchange has earned the recognition of over 4 million users from more than 200 countries and regions. With 600+ premium crypto and 1,000+ trading pairs listed through strict screening procedures, CoinEx strives to maximize returns for users while mitigating the relevant risks.
Disclaimer: No investment advice is provided in this article, and all data mentioned herein are for reference only. You should not rely on the information provided herein to make any investment decision, and you will be fully liable for your own investment decisions.
