Digital currencies are gradually becoming mainstream as more people in the world embrace this ballooning asset class. Back in the early Bitcoin days, only a handful of stakeholders had the conviction that the crypto market would hit a trillion dollars. Well, it is now two times that figure, not to mention that it had eclipsed $3 trillion at the height of the latest bull run in November 2021.
More interestingly, this market has grown into a diversified ecosystem, with Decentralized Finance (DeFi) and Non-fungible tokens (NFTs) taking the centre stage. These two niches are a perfect representation of the underlying potential of blockchain technology. DeFi introduces a new era of finance while NFTs have enabled artists to authenticate their work and access global clients through decentralized marketplaces such as Opensea and Rarity.
As easy as it may sound, it is not that simple to make a dime in the volatile crypto market. Some investors have lost fortunes in significant measures. Luckily, such situations can be minimized through proper due diligence and focusing on the right crypto investment trends.
This article will narrow down into some of the passive income opportunities in the blockchain economy. Some of the notable avenues include decentralized betting protocols, the metaverse, DeFi staking, synthetic trading, and play-to-earn (p2e) games.
- Decentralized Betting Protocols
The online gambling market is currently valued at $59 billion; according to Statista, this metric will likely double within the next year. Following the rise of decentralized protocols, some of these funds are finding their way into the blockchain ecosystem. Today, one can easily place a wager on a decentralized betting protocol such as LunaFi, which leverages smart contract infrastructure to automate payouts.
The LunaFi betting protocol also gives users an option to become the house by providing liquidity in various pools. Built on the fundamentals of a trustless ecosystem, LP providers on LunaFi house pools are entitled to a share of the profits. The platform’s flagship DApp ‘Lunabets’ is powered by the native $LFI token which serves as the reward incentive for LPs and other players who decide to take on the house.
- Virtual Worlds (Metaverse)
A virtual world or popularly known as the metaverse is another blockchain-built ecosystem where crypto natives can make some money. This concept has spread like a wildfire to attract enthusiasts from the creative and gaming industries. As it stands, prominent celebrities in Hollywood like Snoop Dogg and Paris Hilton are some of the investors that have acquired virtual land or formed a partnership to host events on Web 3.0.
While most normies are yet to catch on to the trend, emerging metaverse platforms such as Bullieverse are making it simpler to become part of this futuristic way of life. This Ethereum and Polygon compatible metaverse features a ‘low code’ building environment that enables its community members to create and publish customized games. It is also possible to own and rent out NFTs within this ecosystem.
- DeFi Staking
Fundamentally, blockchain ecosystems are secured by a distributed network of contributors; miners (Proof-of-Work) and stakers (Proof-of-Stake). The latter is more accessible to small-time crypto users, given that it does not require computational energy. Instead, node validators on PoS blockchains commit their tokens to add and verify transactions in return for network incentives.
Some of the PoS networks where crypto users can stake include Wanchain, a cross-chain layer designed to introduce interoperability within several blockchain environments. This ecosystem rewards stakers with the native $WAN token. Simply put, DeFi users are not only exposed to Wanchain’s interoperability bridges but also an opportunity to increase their wealth through the platform’s staking program.
- Play-to-Earn (P2E) Games
This crypto niche is currently the most trendy narrative, capturing the attention of both market veterans and prospective entrants. Last year, p2e games dominated a larger percentage of the total active DApp usage, with games such as Axie Infinity and Splinterlands taking home the lion’s share. The former recently surpassed $4 billion in total sales, a growth curve that will likely continue as we enter the second quarter of 2022.
So, what’s the catch in the p2e model? Unlike DeFi, p2e games are more straightforward; in most cases, players engage in the game by accumulating digital collectibles that have an internal or external value. These on-chain assets can be swapped for other digital currencies or fiat via decentralized NFT marketplaces. A revenue-generation structure that is currently supporting some families in countries such as the Philippines.
- Synthetic Trading
The traditional stock and commodities market has been the pillar of modern-day finance. However, these assets are not accessible to most people; well, thanks to synthetic cryptocurrencies, it is now possible to get exposure to stocks such as TSLA and lucrative metals like gold. Ideally, synthetic assets derive their value from the prevailing price of an underlying real-world asset (stocks, commodities, or real estate).
The beauty of synthetic crypto assets is their decentralized nature which means that anyone can purchase these financial instruments regardless of their geolocation. Mirror Protocol is one of the platforms that is creating an environment where traders can swap traditional financial instruments round the clock in the form of synthetic assets. This approach has been integral in eliminating the barriers imposed by centralized brokers, banks, and investment firms.
As highlighted in this article, the crypto market is a hub of money-making opportunities. While it may still be facing strong opposition from regulators, it would be costly to miss out on these early developmental stages. The next few years will likely welcome mainstream adoption and the evolution of DeFi into a more sustainable ecosystem.
Meanwhile, NFTs will become the new form of art and a primary building block of the gaming sector. This calls for savvy market analysts and investors to keep tabs on the ongoing trends to make the most of this new economy.
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