- The past decade has has seen the crypto industry grow globally.
- Crypto regulations and DeFi will grow while many tokens will disappear.
The past 10 years have been a rollercoaster for cryptocurrencies. In this period, Bitcoin skyrocketed from less than $10 to over $67,000 while the total market cap of all cryptocurrencies jumped to over $3 trillion. The crypto industry, like other technological marvels of the past, has also experienced its boom and bust. In this crypto in 10 years review, I will explain what I expect to happen in the next decade.
Streamlined crypto regulations
The next 10 years of the crypto industry will be characterized by streamlined crypto regulations. The urgency for coming with these regulations has never been dire. In 2022, we saw the collapse of Terra and its ecosystem. We also saw the collapse of FTX, the second-biggest exchange in the world after Binance.
Crypto regulations will seek to address a number of things. First, it will seek to regulate cryptocurrency exchanges to ensure that they protect user funds. A roadmap of this will be in the form of the stress tests that banks go through on an annual basis. Exchanges will also need to improve their disclosures.
Stablecoin regulations will also form an important part of the industry. Creators of these stablecoins will be required to provide adequate disclosures and audits on their holdings. Still, it is unclear how these regulations will apply to algorithmic stablecoins.
DEXs will go mainstream
Another crypto in 10 years prediction is that decentralized exchanges will go mainstream by then. For starters, DEXs are platforms that use the decentralized autonomous organization (DAO) model. Instead of being operated by a team, they are instead run by an autonomous organization. Anyone can become a member.
Following the collapse of FTX and Voyager Digital, more people will likely prefer using decentralized exchanges to invest and trade. DEXes have proven to be more secure since they are backed by smart contract technology. Some of the top DEXs that will thrive in ten years are Uniswap, dYdX, and PancakeSwap.
Many crypto tokens will implode in 10 years
Another crypto prediction for the next ten years is that many tokens will implode. Today, we have over 20,000 crypto tokens. As the FTX crisis showed, many of these tokens are highly illiquid and are not worth anything. This includes some of the biggest crypto tokens in the world.
Like we saw during the dot com bubble when many companies collapsed, the reality is that many tokens will disappear. For example, meme coins like Tamadoge, Shiba Inu, and Floki Inu will likely disappear. Instead, well-known coins like Bitcoin and Ethereum will thrive.
