That said, the crypto market has not been able to shrug off its correlation with other asset classes such as equities and gold.
Experts believe that the market will mature in the longer term and segregated crypto themes will come into play, individually. They seem optimism on Defi, Metaverse and NFTs, followed by smart contracts and utility tokens.
Kumar Gaurav, Founder & CEO of Cashaa has high hopes for NFT and Metaverse as he believes they are creating a logical sequence of human evolution.
Metaverse is a virtual world for immersive experiences where people across the world can meet, play, watch, and trade. The metaverse is a concept of a persistent, online, 3D universe that combines multiple virtual spaces.
It is projected as a future iteration of the internet. The metaverse will allow users to work, meet, game, and socialize together in these 3D spaces.
Gaurav said that humans are social animals and with NFTs, which can be used in Metaverse, this is all going to be possible. “Metaverse has diversity. Investors should invest in projects that are more close to the real world,” he added.
Going all gung ho on the metaverse theme, Mark Zuckerberg renamed and rebranded his social media behemoth ‘Facebook’ to ‘Meta’, an effort to capitalise on the digital frontier.
Market excerpts suggest that the global market for goods and services in the metaverse will be worth $1 trillion over a few years.
Experts are also bullish on themes like decentralized finance (DeFi), which offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain.
Bhagaban Behera, CEO and Co-Founder, Defy is highly bullish on DeFi. He is positive on other themes like NFTs and Metaverse.
Behera said, “DeFi is vast and solves large pain points of people on a global scale. It takes the basic concept of Bitcoin and advances on it, creating an entire digital alternative to Wall Street, without more costs.”
Defi is at a nascent stage, particularly in India. The companies are going big in this space, and are watching closely for new emerging solutions and getting adopted by the masses.
“This space has the potential to create more open, free, and fair financial markets, easy to access through the internet,” he added.
Defi includes earning interest, borrowing, lending, buying insurance, trading derivatives or assets and more.
Market experts said that not many crypto themes will become dud in the near future rather more will emerge. Crypto is simply one and a half-decade old, with a long way to go, they add.
However, what booms and fades will be decided by major innovations that happen over the coming years and how solutions get adopted.
In terms of providing real value, Defi, Metaverse and NFT, respectively, will lead the way, said Behera. “Each of these themes is in development, and innovation is happening rapidly.”