3 Major Crypto Trends & Mad Mike’s Farewell ✌️🦎

This week, we explore investment opportunities in 3 crypto sectors: Tokenization, DeFi and Layer 2s.

*|MC_PREVIEW_TEXT|* Good morning tasty friends. What an abysmal week in the markets. But there was a bright spot. The ETH ETF debuted with net inflows of $106 million, meeting expectations and amounting to about 20% of the Bitcoin ETF's debut earlier this year. But aside from this relatively positive note, it was gloom everywhere you looked. 👀 Here's where we ended the week: 👇 Bitcoin (BTC): -1.5% Ethereum (ETH): -8% Solana (SOL): -1.5% Nasdaq: -4% This week, we dive into three of the most promising trends in crypto. But first... My Last Update This will be my last update for tastycrypto. After years of saving, I have acquired enough funds from my staked ETH to purchase a hut on the shores of Lake Xochimilco, where I will commence my lifelong dream of farming the elusive axolotl, also known as the Mexican Walking Fish. Ryan, known for his less meandering and more data-driven approach, will take over. That is, of course, until he amasses enough ETH to join me on the shores of Lake Xochimilco to farm the elusive axolotl. Ryan's never seen The Shawshank Redemption, so unfortunately, this will be lost on him.  I leave you with three promising crypto sectors I believe will have the greatest and most immediate impact on the world. 🛠️🌎   🍒 Follow Mad Mike on twitter to see what's next   Buy The Ether ETF on tastytrade 1. Tokenization of Real-World Assets Tokenizing real-world assets means taking something physical or valuable in the real world, like a house, a piece of art, or even a gold bar, and turning it into a digital token on the blockchain.   As we can see below, tokenizing real-world assets has exploded over recent years. 👇 I excluded stablecoins from the list as they skew the results due to their gargantuan market share. Here is the same chart with stablecoins included.👇 Here are three reasons why I believe tokenization will continue to soar: Fractional Ownership: Anything can be broken up into tokens. For example, instead of buying an entire Picasso painting, tokenization allows you to buy small pieces (tokens), making it affordable for everyone and thereby democratizing this previously exclusive asset class.   Global Accessibility: Tokenization allows people worldwide to invest in assets like US stocks, breaking down geographical barriers and giving everyone access to global markets.   Liquidity: Tokenized assets can be quickly and easily traded, providing liquidity that makes it easier to buy and sell. Imagine taking an incredibly illiquid piece of real estate, like a commercial high-rise building, and tokenizing it. You can then distribute these tokens, allowing investors to buy small shares, making it easier to trade parts of the building quickly, similar to stocks. How Can I Invest in Tokenization?  Since most tokenization projects are run on the Ethereum blockchain, buying ether (ETH) is a no-brainer when it comes to investing in this rising crypto category.  Buy Ether with Self-Custody If you want to diversify your tokenization holdings, check out our article, "7 Real-World Tokenzation Projects to Invest In Today".   Decentralized Finance (DeFi) Decentralized Finance, or DeFi, is a revolutionary financial system built on blockchain technology that operates without traditional banks or exchanges. It allows anyone with an internet connection to access financial services like lending, borrowing, and trading directly from their devices. Although the value locked in the DeFi ecosystem peaked in 2021, we can see below that DeFi protocols are on the rise once more. 👇 Here are three good reasons to invest in DeFi:👇 Accessibility for All: DeFi platforms are open to anyone with an internet connection, eliminating the need for traditional banks and allowing global access to financial services, democratizing finance.   Transparency and Security: DeFi uses blockchain technology to ensure transparent and secure transactions. Smart contracts automate agreements, reducing fraud and giving users full control over their assets.   High Yield Opportunities: DeFi offers numerous services like liquidity provision and staking that provide higher returns than traditional finance alternatives. How Can I Invest in DeFi? There are thousands of DeFi protocols in existence. Before I buy a DeFi token, I always run it through the following checklist:   Real-world value: What are the practical uses and benefits of the protocol?   Market cap: What is the total market value of the protocol's tokens?   Total Value Locked (TVL): How much crypto is staked in the protocol? This typically indicates the protocol's adoption trust. If the project meets these requirements, I do my research. Since everything that happens on a blockchain is open and transparent, parsing through the data is a cinch. To get you started, here are some great crypto research sites. We have also written several articles on top DeFi projects. Here is the tastiest one. 👇 11 Best DeFi Projects 3. Layer 2 Projects Layer 2 projects are designed to improve the scalability and efficiency of the Ethereum network by processing transactions off the main Ethereum chain and then reporting them back. This helps to reduce congestion and lower fees on the main blockchain. 🍒 Layer 1 vs Layer 2: Here's How They Differ The below image shows the growth of 4 prominent Layer 2 networks, with Arbitrum (ARB) leading the pack (green) while Coinbase's "BASE" is fast catching up (pink).    Here are three good reasons why Layer 2 projects will continue to thrive: Scalability: Level 2 solutions boost Ethereum's transaction capacity, handling more transactions per second than the main chain.   Lower Fees: Level 2 projects reduce gas fees by processing transactions off-chain, making Ethereum interactions more affordable.   Enhanced User Experience: Faster transactions and lower costs create a smoother, more efficient user experience, attracting more users and developers. How Can I Invest in Layer 2's? Lucky for you, we have already written about the 7 most promising Layer 2 crypto projects of 2024. 👇  7 Best Layer 2 Crypto Coins in 2024 Goodbye, tasty World! It's been a great time working at tastycrypto over the past few years. My favorite part has been interacting with you all.    But I hate goodbyes, so I'll make this short and leave you with a a quote that isn't depressing at all. 👇 Contact |  Blog  |   Learn If you no longer want to receive our communications, please click here. tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. and tastytrade, Inc. Neither tastylive, Inc. nor tastytrade, Inc. are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved, including volatile market prices, illiquid market conditions, lack of regulatory oversight, market manipulation, and other risks. tastylive, Inc., 19 N. Sangamon St., Chicago, IL 60607, United States