KuCoin crypto exchange’s investment and research offshoot KuCoin Labs today released its 2021-Q2 Crypto Industry Quarterly Report with a number of interesting insights.
DeFi, NFT Significant for Crypto Adoption
In the report, research has been done on several important landscapes within the crypto industry, such as DeFi and NFT.
The report posits that decentralized exchanges (DEX) or non-custodial exchanges are slowly but surely eating into centralized exchange’s (CEX) market share and trading volume. The trend, as identified in the report, was initiated by emerging DeFi protocols and the rising popularity of NFTs.
The report goes on to state that in order to remain competitive in the fast-growing digital asset industry, CEXes must embrace decentralized ethos.
In addition, the report notes that users interested in NFTs and meme coins are far more likelier to become decentralized application (dApp) users compared to users attracted to major cryptocurrencies such as bitcoin (BTC), ether (ETH), and others.
Further, both BTC and ETH addresses increased substantially during Q2 2021 which could partially be attributed to the so-called “spillover” effect of NFTs becoming increasingly popular in the same quarter.
Commenting on the development, Lou Yu, Head of KuCoin Labs, noted:
“We are glad to see that the first industry research report by KuCoin Labs goes live today. The report contains in-depth research on the major development trends and market performance of the crypto industry in Q2 2021, which can be considered as a significant reference for the industry research.”
“KuCoin Labs possess a group of experts in research who regularly analyze industry developments and hot topics to provide their solid findings, explore and support high quality blockchain projects, and contribute to a sustainable development of the ecosystem.”
Stablecoins Growing Popular Due to Uncertain Crypto Regulations
Further, the research findings from KuCoin Labs found that “in the face of the unexpected extreme market conditions and increasingly stringent market regulation, investors were more concerned about asset stability and risk avoidance.”
The report adds the need for risk mitigation and value transfer played a key role in the rising popularity and use of stablecoins.
The report goes on to state that both DeFi ecosystem and NFTs play an important role in the development of the blockchain industry.
Additionally, the report found that the impact of tweets by influential people such as Elon Musk was quite significant on the industry in terms of investor sentiment and cryptocurrency prices.
Finally, the report notes the serious impact of dramatic actions taken by China including its crackdown on the nation’s largest bitcoin mining operations and not allowing BTC to be used in business transactions. It says “every time Beijing issues a policy, the price of BTC would fall sharply.”
The 2021-Q2 Crypto Industry Quarterly Report also covers the state of crypto regulations in the US and their impact on the digital assets markets.
KuCoin Labs is committed to releasing and sharing more such insightful reports to make the crypto and blockchain industry as transparent and forward thinking as possible. To get your hands on the latest report, kindly contact [email protected].