While there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many activities in the market that have changed the tide to improve. With proper analysis and the right dose of optimism, anyone who invests in the crypto market can get millions. The cryptocurrency market is here to stay long term. In this article, we give you five positive factors that can drive innovation and the market value of cryptocurrencies.

1. Innovation in scale

Bitcoin is the first cryptocurrency on the market. It has the maximum number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without its problems. Its main bottleneck is that it can only handle six to seven transactions per second. In comparison, credit card transactions average an few thousand per second. Apparently, there is room for improvement in the scale of transactions. With the help of peer to peer transaction networks in addition to blockchain technology, it is possible to increase the volume of transactions per second.

2. Legitimate ICOs

Although there are cryptocurrencies with a stable value in the market, new currencies are being created designed to fulfill a specific purpose. Currencies like IOTA are meant to help the Internet market of things exchange energy coins. Some currencies address the issue of cybersecurity by encrypting digital vaults to store money.

The new ICOs offer innovative solutions that alter the existing market and add new value to transactions. They are also gaining authority in the market with their easy-to-use exchanges and reliable backend operations. They are innovating both in terms of technology and the use of specialized hardware for mining and the financial market, giving more freedom and options to stock market investors.

3. Clarity on regulation

In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits can accumulate for the community at large. We can expect that there may be reasonable conclusions depending on the outcome of the studies.

Few governments are already taking the path of legalizing and regulating crypto markets like any other market. This will prevent ignorant retail investors from losing money and protecting them from damage. Prevention regulations that drive the growth of cryptocurrencies are expected to appear in 2018. This will potentially pave the way for widespread adoption in the future.

4. Increased application

There is a huge enthusiasm for applying blockchain technology to virtually every industry. Some emerging companies offer innovative solutions such as digital wallets, debit cards for cryptocurrencies, and more.

The reputation of cryptographic assets as a means of transaction will be strengthened as more people trust this system. While some startups may not survive, they will make a positive contribution to the overall health of the market by creating competition and innovation.

5. Investment by financial institutions

Many international banks are seeing the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of substantial institutional investment will fuel the next phase of growth in cryptocurrencies. It has captured the imagination of many banks and financial institutions.

As surprises and bottlenecks around cryptocurrencies are reduced, there will be more uptake from traditional investors. This will lead to great dynamism and much-needed liquidity for any growth in the financial markets. The cryptocurrency will become the default currency for worldwide transactions.