A Critical Trend for Tokens

Digital currency tokens that offer a purely monetary function are falling out of favor. The new kids in town are those tokens that are not necessarily used as currency, and they are rerouting the course of cryptocurrency trading. When you have tokens issued by companies such as Topps and Microstrategy, and you see them enjoy a market rally, you know that times are changing.

To understand the ongoing cryptocurrency exchange trend of 2021, let's assume that most cryptocurrencies rely on tokens being traded primarily for their value. This does not always reflect what the blockchain has to offer. With Bitcoin, for example, you get to choose a market position based on demand, which in turn is a function of liquidity, and you select your currencies in the same manner as you select a currency pair in the forex market. You know that you will be able to exchange tokens in the future because we see them as the digital currencies they are.

With non-fungible tokens, we get utility as well as value, but there are other tokens such as XinFin, which represent ambitious blockchain projects not necessarily tied to currency use. The days of speculating purely on currency exchange prices are pretty much over. The cryptocurrency investors of the future care more about what the blockchain can do, and they are willing to speculate on the success of some projects. This is almost like buying shares of a company you actually support based on projection, performance, and governance; in other words, we are seeing the cryptocurrency market turn into a platform where traders are actually paying attention to fundamentals.

The most immediate consequence of this trend for Bitcoin and other major tokens is that they are not enjoying the trading volumes of yesteryear. There is a lot of fresh money flowing into enterprise blockchain projects as well as NFTs, but what is really interesting about this trend is that it is shifting the market towards a Wall Street-like environment, and this could very well attract the attention of regulators from the United States Securities and Exchange Commission. For the time being, however, traders are making the most from this situation.