The last 10 years have been a roller coaster ride for cryptocurrencies. During this period, the price of Bitcoin (BTC) rose from below $10 to over $67,000, while the total market capitalization of all cryptocurrencies at its peak was over $3 trillion. .
Like other technological marvels of the past, the crypto industry has had its ups and downs. In this 10 year look back at cryptocurrencies, I will explain what I expect to happen over the next decade.
Tighter crypto regulations
The next 10 years of the crypto industry will be marked by stricter regulations for digital assets. The urgency to adopt these regulations has never been greater. In 2022, we saw the collapse of Terra, followed by the bankruptcies of several major crypto platforms. And just recently, we saw one of the largest crypto exchanges in the world, FTX, collapse in a matter of days.
Crypto regulation will address a number of things. First, crypto exchanges would be better regulated to ensure customer funds are properly protected. Regulation will likely be similar to banking supervision, for example requiring exchanges to adhere to stricter disclosures.
New regulations for stablecoins can also be an important part of the industry. The issuers of these stablecoins will be required to provide adequate information on the holdings, to update it regularly and also to have it verified by independent bodies. However, it is unclear how these regulations will apply to algorithmic stablecoins.
Decentralized Exchanges Are Going Widespread
Another prediction for crypto 10 years from now is that decentralized exchanges (DEXs) will become mainstream by then. DEXs are crypto platforms that use the Decentralized Autonomous Organization (DAO) model. They are not operated by a company, but are based on voting within the community, so that each user can participate in important decisions.
After the collapse of FTX and Voyager Digital, more investors are likely to prefer decentralized exchanges for their crypto investments and trading. DEXs have proven to be more secure as they operate on the basis of transparent smart contracts. Some of the DEXs that will thrive over the next 10 years are likely to be Uniswap, dYdX, and PancakeSwap.
Many crypto tokens will no longer exist in 10 years
Another crypto prediction for the next decade is that many tokens will no longer exist. Today, there are over 20,000 different cryptocurrencies. As the FTX crisis has shown, many of these tokens are actually illiquid and worth next to nothing. This includes some of the biggest crypto tokens in the world.
During the dotcom bubble, many tech companies proved uncompetitive. We will likely see a similar picture in the blockchain industry, for example with coins like Tamadoge, Shiba Inu or Floki Inu. Cryptocurrencies with real use cases like Bitcoin and Ethereum will continue to exist.