Half of crypto investors believe in the long-term growth and appreciation of digital assets in the cryptocurrency market. According to a survey, 49% of crypto holders plan to hold their tokens for as long as possible. A report by EY reveals that over 72% of all current investors believe that crypto is key to their financial success.
Another interesting survey by Sygnum Bank revealed that over 57% of all professional investors plan to significantly increase their long-term allocation and focus on high-growth cryptocurrency investments. However, it must be noted that the survey was conducted in November 2024, when the DeFi ecosystem was doing extremely well.
Choosing the right portfolio composition when aiming at long-term results is quite difficult, considering the high volatility of the cryptocurrency market.
Many Bitcoin enthusiasts often talk about using BTC as the foundation for generational wealth that can be passed on to the kids and relatives in the future. The all-time return on BTC investments is 33,700% or 79.02% annualized and compounded. It is one of the best financial instruments of the last two decades.
On the other hand, the high volatility of most crypto coins, including BTC, drives away many non-investors and conservative capital holders. While Bitcoin appears to be a good capital allocation in hindsight, its price action history, erratic behavior of large investors, and the absence of fundamental metrics make it a dangerous proposition for the vast majority of classically trained professionals.
There are several traits that you should look for when trying to identify a good crypto to hold for years:
One thing that investors should not think too much about is the novelty of technological improvements. While zk-rollups and cross-chain tech interest DeFi enthusiasts and developers, they present little value to average users and may not produce any impact on the price and long-term prospects of their respective chains.
Instead, we recommend investing in time-tested chains and currencies. Avoiding projects with opaque development processes (Mantra) or questionable technology (Terra Luna) is imperative. Many investors prefer working with stablecoins and algorithmic stablecoins offered by centralized and decentralized platforms. While these often do not carry the same potential for appreciation and can be vulnerable to fiat inflation, they can be used as gateways to the world of DeFi.
The current landscape of the DeFi ecosystem is already incredibly complex. It features 2,500 active protocols and over 14,000 tracked platforms that have low or no user activity. With over 11,000 pools offered by the most prolific of them, it is quite challenging to identify the best targets for long-term capital allocation.
Making crypto market 2030 predictions is an ungrateful task, but hundreds of analysts are doing it and providing wildly different estimates. Fidelity Investments estimates that BTC will reach a staggering price of $1 billion by that time. GlobeNewsWire has a very low-ball estimate of the revenues and market size of the blockchain industry. They say that it will be worth $1.8 billion by 2030.
The discrepancy between different predictions is often explained by the economic uncertainty and the unpredictability of DeFi market trends.
We strongly suggest following some narratives as they promise to be quite important in the near future:
It is hugely important for all DeFi investors to understand that the market is cyclical. Short-term goals can be reduced to rubble by sudden price action changes, new regulations, and social media sentiment. However, the long-term trajectory of the whole cryptocurrency market is still upward. It means that one must respect the role of education in understanding long-term crypto market cycles and learn as much as possible.
It is also important to select reliable capital allocation options within the DeFi sector for diversification purposes and short-term gains that will complement long-term goals. Select some of the best investment strategies from the catalog offered by Rivo. The Yield Marketplace features a wide range of investment options selected by experienced professionals.
All showcased strategies have been diligently researched by trained specialists to ensure that users access only tried-and-tested products. Note that you can also talk to the Maneki AI agent and tell it your investment preferences, horizons, and risk style. Then, it will suggest the best options for your portfolio!
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