Opinion: What the latest market rally tells us about the next token trends
Written by Mel Gelderman
Posted on November 2nd, 2023
Mel Gelderman comments on some of the latest trends to take off in the recent market rally, adding why he expects to see more fragmentation as new projects emerge.
The token market is showing signs of life. Bitcoin is in the spotlight as ETF hype builds, but other trends are emerging. I think there are learnings to take from the last few weeks.
“I think we can expect fragmentation to continue.”
The latest emerging trends 👀
Firstly, Bitcoin’s dominance is growing. This is nothing new; it tends to lead early in bull cycles. But other projects are continually gaining pace. I’ve previously discussed Solana’s growth, and the “onchain” trend remains strong.
Many of this year’s biggest risers were early projects that experts found on decentralised exchanges before they were listed elsewhere. Most recently, speculators have flocked to nascent meme coins. These projects may not offer fundamentals, but their moves hint at how the market will behave in the future.
Why the market will stay fragmented
Bitcoin and Ethereum are less risky than most other tokens due to their size and Lindy effect. But they offer diminishing returns as they grow. So we often see people buying into smaller projects in hopes of catching an undiscovered gem.
In the 2021 bull run, the market was extremely fragmented. I think we can expect fragmentation to continue, especially as niches like AI and SocialFi grow. That may mean Bitcoin disappoints some people in the short term. But it aligns with token.com’s vision of a world of millions of tokens.
“We’ll see a project go viral by combining fun and accessibility.”
Combining fun and accessibility 🤗
Some of the market’s recent favourites have had a “fun” factor, but you need to know how to find them. In the future, I think we’ll see a project hit virality by combining fun and accessibility. Think friend.tech or another type of social token or meme-themed game. At token.com, we’re trying to make all of the leading tokens more accessible by focusing on education and a slick UX.
I want to point out that meme coins are risky and volatile. There are plenty of other projects that offer more meaningful value and ways to invest with intent. I’d also add that it’s still early in this new cycle, so trends will change. I’m not sure what that means for niches like NFTs or DeFi. But I am convinced that some other newer projects will surprise us. Personally, I’m hoping that we see some exciting new technological innovations grow. We’ll be here to support them when they launch.
Please note: Investing in cryptoassets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from cryptoasset investing are not guaranteed, therefore users should always be aware of the risks.