Analyzing the cryptocurrency landscape as it was shaped during the last 3 years and some info on what could be the next important technological blockchain innovation.
Previous Bull Run / Economic Growth Triggers
2017 was the year of pumps and ICOs. Many cryptocurrencies saw growth from 5-10x up to 100x on their token’s price and market cap. Prices were easily increasing by 20-50% in a single day attracting investors as well as scammers to the space. You may wonder, what was this growth driven by? It was driven mostly by speculation and hopes of getting rich quick schemes.
Unfortunately, most of these coins have retraced 90-99% in some cases, leaving investors holding bags of worthless crypto coins while losing most of their fiat money. It was the time when everyone was creating a project and you could see 10 new ICOs pop up everyday. All this was done thanks to the Ethereum ERC20 protocol standard which made the creation of tokens easy and fast.
Despite these economic failures, many projects were legit and are still thriving to this day by offering disruptive decentralized technology.
If you want to learn more about what these projects are building, you can watch Tyler from Chico Crypto share his thoughts about DeFi in this remarkably well made video: