The last decade has been nothing short of transformative for the blockchain industry. At the beginning of 2010, cryptocurrency was the only product of blockchain that was globally recognised.
Now, we see blockchain-based applications explode into the mainstream almost yearly. First, it was DeFi, then NFTs, and now that the Metaverse is being discussed, blockchain is finding its way into the mix.
With this moment comes endless speculation about the next big thing in blockchain technology. This is because of the excitement of the evolution of technology and the possibility of cashing in on the next big blockchain trend before it happens.
If anyone knows about blockchain trends, it’s Marcus Fetherston, the Director of Operations at Eightcap.
Eightcap is an award-winning FX and CFD provider that allows users to trade CFDs on forex, crypto, shares and much more. Due to the ever-changing nature of the cryptocurrency market, Eightcap always has to be on top of the trends and shifts. In this interview, Fetherston talks about all things blockchain.
Q: From DeFi to NFTs, blockchain mania seems to have taken over the world in the last few years. Why do you think that is?
Blockchain has exploded over the last few years, it was initially associated with Bitcoin, and now its many benefits have been recognised. The technology underlying the blockchain ecosystem has led to the creation and development of Non-Fungible Tokens (NFTs), Decentralised Finance applications and more cryptocurrencies. There are many reasons why there is what we call ‘blockchain mania’, but one of the main contributors is the power of social media, paired with the influence of public figures. This has also massively contributed to what we call ‘blockchain mania’: large amounts of money spent on limited edition NFTs or tweets that have caused specific blockchains to claim their slice of the spotlight.
Q: What role do you think blockchain will play in the Metaverse and Web3?
Whilst Blockchain will be pivotal to creating the Metaverse; I think we are only in the initial stages of making the Metaverse a reality. This technology is in its infancy and will take five to ten years to play out truly. I feel that all bets in this space right now are unknown. Nevertheless, we should still look at the technology players in this space as more innovation is required to build a metaverse ecosystem. Several benefits of using blockchain will allow this to happen.
When applied to the Metaverse, one key aspect of blockchain and its functionality is proof of ownership. Users may want to take all their crypto assets from one metaverse project to another.
The proof of ownership functionality allows for this as your wallet’s private keys will prove that your assets belong to you. This then taps into the potential of interoperability when using blockchain and essentially means that all the different spaces within the Metaverse can be compatible and interact with each other, allowing for more accessibility and ease for users. This is not an easy technology to pull off and attracts criticism from members of the gaming community. So I feel that traders should be focused more on this kind of technology rather than an open-world gaming metaverse environment.
In regards to web3, blockchain technology will pave the way for the next phase of the internet, as many apps and services will depend on it. At the moment, we are still using web2, predominantly owned and monetised by five major players in the space, such as the likes of Google. It will be interesting to see how web culture unfolds based on definitive premises such as decentralisation and lack of ownership.
Q: Eightcap is all about giving users access to various financial markets, including cryptocurrency. How do you see this evolving as the market changes?
As I have mentioned earlier, we are already evolving our offering as the market changes. We offer over 1000 financial instruments, ranging across Forex, Indices, Shares, Cryptocurrency and Commodities CFDs. We have one of the most extensive suites of crypto derivatives in the crypto space, including over 250 altcoins, crypto-crosses, and crypto indices.
With changes in blockchain technology, it’s the utmost priority for us to keep ahead of the trends and to modify and add to our offering swiftly. We are committed to building a home for our derivative traders, and there are various bricks needed to make that happen. One of the most important ones is our product offering. As blockchain revolves around metaverse projects, DeFi and discovering the next big altcoin, we ensure that our range of cryptocurrencies hits those trends. With us, clients can speculate on the price of Decentraland, AXS, DeFi.Money and much more.
Q: What do you think are the blockchain trends to watch?
Personally, in 2022 everyone will be watching and waiting to hear more about the Metaverse. Last year the mention of the Metaverse was everywhere, which correlates with the rise of metaverse projects that we have seen take off in 2021. It will be interesting to see how these projects now unfold during a significant downtrend in crypto pricing, and long term, I think this will help clean out the weaker projects and allow those with actual value to remain.
The other big trends that will be important over the next year will be developments in financial technology within the crypto space. Ecosystems such as Terra Luna have grown into the top 10 market cap during the last month’s downturn and show promise in real-world financial transaction technology. Blockchain tech like this may define the next year as real value is reflected in the market as the downtrend clears out weaker actors, so it is wise for traders to look for projects with passionate communities and robust underlying technology planned for the future.
Q: Even among blockchain enthusiasts, there is concern that the current wave of popularity might not last as the blockchain bubble might burst. What do you think?
Cryptocurrency is a volatile market, and anything can move it. However, blockchain still has a lot of untapped potential. The underlying technology has numerous benefits, and therefore, there is still a lot to achieve in the sense of decentralised finance and dApps, the Metaverse and more. If businesses start adopting blockchain technology, the popularity will continue to increase rather than subside.
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