Constantly Evolving
The speculative aspect of Crypto has, for the most part, been the primary focus of investors and the media. Investors who are hoping to change their lives and media outlets looking to create headlines with volatility as their primary focus. However, the industry has matured significantly in recent years. DeFi was a game-changer in 2020. Play2Earn, SoFi, and numerous other niches have since introduced a plethora of income opportunities.
The speculative nature of financially geared instruments will always remain a predominant feature of any market. However, the growth and maturation of the Crypto industry have produced alternative options for profitability and income generation. This has become increasingly clear to knowledgeable and experienced market participants. An investor focused on achieving alpha will most likely be ahead of the market in identifying future trends.
SoFi has experienced a fair amount of growth. However, the sector that appears to be light-years ahead of up-and-coming sectors is DePIN. The primary reason for this is its passive income opportunities. Offering a digital device as a node on a global network is only done under the condition of reward. Essentially, this guarantees consistent and ongoing passive income. This is more favorable than SoFi, Play2Earn, or any other action-based sector.
The Upper Hand
DePIN’s passive nature gives the sector an upper hand, which is likely to provide a compounding dynamic over time. The abundance of opportunities and well-structured strategies can provide an attractive long-term investment model. I use the term investment. However, regarding DePIN it is not necessarily a case of investment as results can be achieved without the deployment of capital.
These are the models that will attract disciplined and shrewd investors. DeFi and staking also fit into the scenario. However, these models require working capital. Given the viability of certain action-based models and DePIN, I expect a strong shift in favor of these models. Full-time employed individuals now have a way to begin accumulating and building a Crypto nest egg. Strong moves into these sectors will drive growth and price appreciation.
As a result, I expect DePIN, SoFi, and other such niches to begin climbing the ranks regarding market dominance. In other words, as the entire market appreciates the dominance of these sectors will rise relative to the rest of the market. This is a favorable outcome for anyone who has built a strong foundation in any or all of these sectors. This is one of the ways I believe investors can outperform the altcoin benchmark.
Outperforming the altcoin benchmark is the main objective of an altcoin investor. Achieving alpha is key in the world of altcoin investing and predicting future trends is one of the easiest ways to achieve it. I will be monitoring the dominance of these particular markets, especially DePIN. Two top DePIN projects built on the Peaq Network will soon be going to market and I expect their launch to have a positive impact on the price of PEAQ.
Final Thoughts
The maturation of this industry still has a way to go. The opportunities on offer will only expand over time. We may all be surprised by what this industry offers in five years. Today is always the best time to get started, none of us can go back in time. Make the most of what this market has to offer today and you will benefit from what it offers in years to come. All the best, see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using InLeo Alpha