Learning the friendly way

Ever heard of the "Santa Claus Rally"? Coined by Yale Hirsch and borrowed from traditional market terminology, this phenomenon describes a year-end increase in asset prices, more specifically the last 5 trading days of December and first 2 of January. In the crypto market, there have been 5 Santa Claus Rallies in the last 10 years, while 8 rallies were recorded in the pre-Christmas period from 19 - 25 December. During these rallies, total crypto market capitalisation has seen gains ranging from 0.2% to an impressive 11%.

Let’s explore the validity of this concept, and how it pertains to the crypto markets. 

Pre-Christmas vs. post-Christmas trends

The term "Santa Claus Rally" might sound like wishful thinking, but the numbers tell a more nuanced story. Over the past ten years, the crypto market has demonstrated an interesting pattern of performance during the holiday season, with market capitalisations showing unexpected movements that defy simple predictions.

Interestingly, pre-Christmas Bitcoin rallies (19 to 25 December) were the most frequent, with gains ranging from a modest 0.2% to 13%. 

However, when the BTC market turned bearish, pullbacks were typically more severe after Christmas than before. The largest dip, a wild 21%, occurred in 2017 following the ICO boom. Pre-Christmas declines, meanwhile, were more moderate, with decreases of 6% in 2017 and 1% in 2019.

Years with double rallies

Bitcoin, typically illustrating broader market trends, has delivered equally compelling year-end performances. Over the past decade, it recorded pre-Christmas rallies 8 times, with its standout surge occurring in 2016, with a 13% increase in the week leading up to Christmas and 10% gains post-Christmas.

On the flip side, 2017 marked a dramatic downturn, with Bitcoin's price plunging 21%, highlighting the market's inherent volatility.

Interestingly, only three years (2016, 2020, and 2023) witnessed consistent crypto market gains both before and after Christmas as well as overall in the month of December. Similarly, in 2023, while slight, the crypto market rebounded from bearish territory with gains of 1% before Christmas and 4% after, making a total of 12% gains over the entire month. 

The broader December effect

Zooming out, the month of December paints a more dynamic picture. Half of the past decade saw December-wide market increases ranging from 12% (2023) to a dramatic 47% (2020). 

On the flip side, during bearish Decembers, losses ranged between 4% and 17%.

Bitcoin and the Santa Claus effect

Looking over the numbers, from 2014 to 2023, Bitcoin has seen 5 Santa Claus rallies, peaking at 11% in 2020. However, Bitcoin also faced notable declines, including a dramatic 21% drop in 2017 during the post-Christmas period.

On average, speculating on Bitcoin during Santa Claus rally periods would have yielded modest returns of about 1.3% pre- and post-Christmas. In comparison, holding Bitcoin throughout December delivered a much higher average return of 9.5%, illustrating the variability and inconsistency of the Santa Claus effect.

Takeaway: a mixed bag of opportunities

The Santa Claus Rally remains an inconsistent occurrence in the crypto space. While historical data provides intriguing patterns, traders should approach this trend with cautious optimism, as past performance is no guarantee of future results.

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As we step into 2025, it's time to reflect on an incredible year of growth and milestones at Tap. What a ride 2024 has been! When we look back at everything we've achieved together at Tap this year, it's hard not to feel a surge of pride and excitement. Let's dive into the highlights that made this year truly special.

Revamped payment with a new card design

This year, we introduced our new card and design. Your feedback sparks our creativity and innovation, many of you joked about needing to make a gang sign with your fingers to hide card numbers when sharing photos. Taking that humor to heart, we've redesigned our card so all sensitive information is now on the back, keeping it out of sight.

This means you can proudly showcase your Tap card in pictures without any awkward gestures. Our user-centric design not only enhances your privacy but also makes sharing your Tap experience easier and more stylish than ever. Thank you for inspiring us to create a more seamless and secure way to use and share your Tap Premium benefits.

Did someone say Cashback? 

For those of you wanting more from your Tap experience, we've been listening to what you need, which led us to introduce new premium plans. They're not about bells and whistles – just practical great rewards and rebates that add real value for those who need them. Same goes for our new Cashback feature. Not only are you earning rewards on your spending, but it also gives XTP a more meaningful purpose in your everyday transactions.

Our new Cashback feature has been a game-changer, offering users not only rewards on their Tap card transactions but also increased utility for our native token, XTP. This feature underscores our commitment to delivering tangible benefits and fostering a rewarding financial ecosystem.

Expanding horizons: launching in the USA

2024 was a landmark year as we launched Tap in the USA, marking our entry into one of the world's largest and most dynamic markets. A particularly humbling milestone, it's been a learning experience, and we're grateful for the patience and enthusiasm of our new American users as we continue to refine our services.

New practical features and tools you've been asking for:

To further empower our users, we rolled out a suite of new features, including:

• A smart search bar that helps you find exactly what you need, when you need it.
• A card spending dashboard that enables you to track your card and spending limits. 
• A comprehensive markets section for tracking your favorite tokens in real-time.
• And yes, that discrete hide balance option for when you need to keep things private.

These features are designed to provide our users with greater transparency, control, and convenience in managing their finances.

Expanding cryptocurrency and fiat options

In response to the growing demand for diverse financial options, we added three new cryptocurrencies and four new fiat currencies to the app. This expansion allows our users to transact with greater flexibility and access a wider range of financial instruments. Because why should anyone have to compromise on their financial choices?

Navigating regulatory landscapes: UK and Bulgaria

Even with all this growth, we haven't lost sight of what matters most – doing things right. On the regulatory front, this year tested our resilience and commitment to our users, particularly in the UK. When new FCA regulations required us to suspend XTP token locking for UK Premium accounts last October, we didn't just accept it as a permanent setback.

Instead, our team spent the year methodically working through complex legal requirements to craft a compliant, user-friendly solution. The result? We successfully relaunched XTP token locking for our UK Premium users – a testament to our dedication to finding ways forward even through regulatory challenges.

This commitment to compliance also led us to secure our VASP license in Bulgaria, further strengthening our regulatory foundation across different jurisdictions. While these behind-the-scenes achievements might not be the most exciting news, they're crucial steps in building a service that's trustworthy.

Looking Ahead with Optimism

As we step into 2025, we're just getting warmed up. Everything we've accomplished this year sets the stage for even bigger moves ahead. We've got some exciting plans taking shape, but more importantly, we have a clear vision of how to make Tap work better for you every day. And the best part? We're building this future with you, our incredible Tap community.

Thank you for being part of this journey – for your trust, your patience, and your candid feedback. Together, we're not just building another fintech platform; we're crafting the future of finance, one thoughtful step at a time.

Here's to the next chapter of our journey together – it's going to be epic!

Decoding the disconnect: America's cautious approach to crypto
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Bitcoin and the broader crypto market have soared to a staggering $2.1 trillion in value, but why does skepticism still linger among so many Americans? 

Despite increasing adoption, digital currencies remain shrouded in doubt, revealing a significant trust gap that continues to challenge the industry. As cryptocurrencies become more woven into everyday financial transactions, closing this trust deficit is essential for ensuring sustained growth and mainstream acceptance.

In this article, we'll dive into the key reasons behind this persistent mistrust, uncover the expanding real-world uses of digital assets, and explore how education and technological advancements can help bridge the confidence gap. Keep in mind, the data presented draws from multiple studies, so some figures and age groupings may vary slightly.

A Look at the Current State of Crypto Trust

To truly understand cryptocurrency adoption and the accompanying trust issues, it’s essential to examine the latest statistics and demographic data. This section breaks down public sentiment toward crypto and provides a snapshot of its user base.

General Public Sentiment

Percentage of Americans Who Own Cryptocurrency

Cryptocurrency adoption has seen slow but steady growth over the years. According to surveys conducted by Pew Research Center in 2021 and 2023, 17% of Americans have invested in, traded, or used cryptocurrency, up slightly from 16% in 2021. 

While estimates vary, Security.org places this figure higher, estimating that roughly 40% of the U.S. population - around 93 million adults - own some form of cryptocurrency.

Both studies agree that younger generations are driving much of this growth, with 30% of Americans aged 18-29 reporting they have experience with crypto.

Trust Levels in Cryptocurrency

Despite rising adoption rates, trust in cryptocurrency remains a significant hurdle. Pew Research Center found that 75% of Americans have little or no confidence that cryptocurrency exchanges can safeguard their funds. Similarly, a recent report by Morning Consult shows that 7 in 10 consumers familiar with crypto express low or no trust in it. 

This contrasts the 31% who have some or high trust, or the 24% in the Pew study who are “somewhat” to “extremely” confident in cryptocurrencies.

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Demographics of Crypto Adopters

1. Age Groups

Cryptocurrency adoption trends reveal a distinct generational divide. According to the 2023 Morning Consult survey, Gen Z adults (ages 18-25) lead in crypto ownership at 36%, closely followed by Millennials at 30%. 

These younger groups are also more inclined toward future investments, with 39% of Gen Z and 45% of Millennials planning to invest in crypto in the coming years. Over half of both generations view cryptocurrency and blockchain as the future, while a notable percentage (27% of Gen Z and 21% of Millennials) considered opening an account with a crypto exchange in the past year.

When compared to other asset classes, data from Bankrate’s 2021 survey reveals that younger Millennials (ages 25-31) favor real estate and stock market investments, while Baby Boomers have the least interest in cryptocurrency. Older Millennials (32-40) lean toward cash investments, with cryptocurrency’s appeal steadily declining with age.

Interestingly, the report also highlights gender differences, showing that 80% of women familiar with crypto express low confidence, compared to 71% of men, indicating a broader trust gap among female users.

2. Income Levels

Contrary to common assumptions, cryptocurrency adoption is not confined to high-income individuals. The same Pew Research Center survey revealed that crypto ownership is relatively evenly spread across income brackets:

• 13% of those earning less than $56,600 annually own crypto.
• 19% of those earning between $56,600 and $169,800 own crypto.
• 22% of those earning over $169,800 own crypto.

This data suggests that while higher earners may be more inclined to own cryptocurrency, the appeal of digital assets spans various income levels.

3. Educational Background

Education also plays a role in crypto adoption. A 2022 report by Triple-A found that the majority of crypto owners are “highly educated”:

• 24% of crypto owners have graduated from middle or high school.
• 10% have some vocational or college education.
• 39% are college graduates.
• 27% hold postgraduate degrees.

This shows that while those with some college education or a degree are more likely to own crypto, it is not exclusively a pursuit of the highly educated.

This demographic data paints a picture of cryptocurrency adopters as predominantly younger, spread across a range of income levels, and with diverse educational backgrounds. However, the trust gap between crypto and traditional financial systems remains a significant barrier to wider acceptance of digital assets.

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Key Trust Barriers

To bridge the gap between cryptocurrency adoption and trust, it’s crucial to understand the major concerns fueling skepticism. This section explores these concerns and contrasts them with similar risks in traditional financial systems.

The Primary Concerns of Skeptics

Volatility

One of the most significant barriers to cryptocurrency adoption is its notorious volatility, particularly for investors seeking stable, long-term assets. Bitcoin, the most well-known cryptocurrency, symbolizes this risk.

In 2022, Bitcoin’s volatility was stark. Its 30-day volatility reached 64.02% in June, driven by broader economic uncertainty and market downturns, compared to the S&P 500’s much lower volatility of 4.71% during the same period. 

Over the course of the year, Bitcoin’s price swung from a peak of $47,835 to a low of $18,490, marking a substantial 61% decline from its highest point in 2022. Factors such as rising interest rates, geopolitical tensions, and major crypto market disruptions, like the TerraUSD collapse and Celsius’ liquidity crisis, played a pivotal role.

This extreme volatility reinforces the perception of cryptocurrencies as high-risk investments.

However, traditional stock markets, while typically more stable than crypto, can also experience sharp fluctuations, especially in times of economic stress. For instance, the CBOE Volatility Index (VIX), which measures expected near-term volatility in the U.S. stock market, dropped by 23% to 28.71 on June 30, 2022, far below the 82.69 peak recorded during the early COVID-19 market turbulence in March 2020. This shows that even stock markets, generally seen as safer, can experience moments of intense volatility, particularly during global crises.

Additionally, when compared to the "Magnificent Seven" (a group of top-performing and influential stocks) Bitcoin’s volatility doesn't stand out as unusual. In fact, over the past two years, Bitcoin has shown less volatility than Netflix (NFLX) stock. 

On a 90-day timeframe, NFLX had an average realized volatility of 53%, while Bitcoin’s was slightly lower at 46%. The reality is that among all S&P 500 companies, Bitcoin has demonstrated lower annualized historical volatility than 33 of the 503 constituents. 

In October 2023, Bitcoin was actually less volatile than 92 stocks in the S&P 500, based on 90-day realized historical volatility figures, including some large-cap and mega-cap companies.

Security

Security concerns are another major hurdle in building trust with cryptocurrencies. Cryptocurrency exchanges and wallets have been targeted by numerous high-profile hacks and frauds, raising doubts about the safety of digital assets. It comes as no surprise that a study from Morning Consult found that 67% of Americans believe having a secure and trustworthy platform is essential to entering the crypto market.

While security threats in the crypto space are well-documented, traditional banking systems are not immune to fraud either. Federal Trade Commission data reveals that consumer fraud losses in the traditional financial sector hit a record high of $10 billion in 2023, marking a 14% increase from the previous year.

 Although traditional banks have more safeguards in place to protect consumers, they remain vulnerable to attacks, showing that security is a universal challenge across both crypto and traditional finance. 

Prevention remains key, which in this case equates to using only reliable platforms or hardwallets. 

Regulatory Uncertainty

Regulatory ambiguity continues to be a critical barrier for both cryptocurrency investors and businesses. The evolving landscape creates uncertainty about the future of digital assets.

Currently, cryptocurrency is legal in 119 countries and four British Overseas Territories, covering more than half of the world’s nations. Notably, 64.7% of these countries are emerging and developing economies, primarily in Asia and Africa. 

However, only 62 of these 119 countries (52.1%) have comprehensive regulations in place. This represents significant growth from 2018, when only 33 jurisdictions had formal regulations, showing a 53.2% increase, but still falls short in creating a sense of “unified safety”.

In the United States, regulatory views remain fragmented. Various agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have conflicting perspectives on how to classify and regulate cryptocurrencies. Since 2019, the SEC has filed over 116 crypto-related lawsuits, adding to the regulatory uncertainty faced by the industry.

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The Growing Integration Of Digital Assets In Daily Life

As we progress further into the digital age, cryptocurrencies and digital assets are increasingly becoming part of our everyday financial transactions. This shift is driven by two key developments: the rise of crypto payment options and the growing adoption of Central Bank Digital Currencies (CBDCs).

According to a MatrixPort report, global cryptocurrency adoption has now reached 7.51% of the population, underscoring the expanding influence of digital currencies worldwide. By 2025, this rate is expected to surpass 8%, signaling a potential shift from niche usage to mainstream acceptance.

The list of major retailers embracing cryptocurrency as a payment method continues to grow. Some notable companies now accepting crypto include:

• Microsoft: Accepts Bitcoin for Xbox store credits.
• AT&T: The first major U.S. mobile carrier to accept crypto payments.
• Whole Foods: Accepts Bitcoin via the Spedn app.
• Overstock: One of the first major retailers to accept Bitcoin.
• Starbucks: Allows customers to load their Starbucks cards with Bitcoin through the Bakkt app.

A 2022 Deloitte survey revealed that nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years. This trend highlights the growing mainstream acceptance of digital assets as a legitimate payment method.

Crypto-backed debit cards are further bridging the gap between digital assets and everyday transactions. These cards enable users to spend their cryptocurrency at any merchant that accepts traditional debit cards. 

According to Factual Market Research, the global crypto card market is projected to reach $9.5 billion by 2030, with a compound annual growth rate (CAGR) of approximately 31.6% from 2021 to 2030. This growth reflects the increasing popularity of crypto-backed debit cards as a way for consumers to integrate their digital assets into daily spending.

The Rise of Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) represent digital versions of a country’s fiat currency, issued and regulated by the national monetary authority. In 2024, the global progress of CBDCs has seen a significant uptick, with marked advances in both research and adoption. As of this year:

• 11 countries have fully launched CBDCs, including the Bahamas, Nigeria, Jamaica, and China.
• 44 countries are conducting pilot programs, up from 36, reflecting growing interest in testing the functionality and stability of digital currencies.
• 66 nations are at advanced stages of CBDC development, contributing to a global landscape where 134 countries (accounting for 98% of the world’s economy) are engaged in CBDC projects.

In the United States, the Federal Reserve is exploring the feasibility of a CBDC through Project Hamilton, a collaborative research initiative with MIT. This exploration aligns with broader goals to reduce reliance on cash, enhance financial inclusion, and improve control over national monetary systems amid the rise of digital payments and cryptocurrencies.

The introduction of CBDCs could significantly reshape daily financial transactions in several ways:

• Increased financial inclusion: CBDCs could offer digital payment access to the 1.4 billion adults who remain unbanked, according to World Bank estimates.
• Faster and cheaper transactions: CBDCs could streamline both domestic and cross-border payments, reducing costs and settlement times.
• Enhanced monetary policy: Central banks would gain more direct control over money supply and circulation.
• Improved traceability: CBDCs could help combat financial crimes and reduce tax evasion by providing greater transaction transparency.

However, challenges persist, including concerns about privacy, cybersecurity risks, and the potential disruption of existing banking systems.

As digital assets continue to integrate into everyday life, they hold the potential to transform how we think about and use money. Despite these challenges, trends in both private cryptocurrency adoption and CBDC development point to a future where digital assets play a central role in our financial systems.

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Building Trust Through Technology and Education

According to the 2023 Web3 UI/UX Report, nearly 48% of users cite security concerns and asset protection as the primary barriers to crypto adoption. Other challenges include high transaction fees and the steep learning curve needed to fully grasp both the technology and its benefits.

Despite these obstacles, the blockchain sector has made significant strides as it matures, particularly in enhancing security. Hack-related losses in the crypto market dropped from $3.7 billion in 2022 to $1.8 billion in 2023, underscoring the progress in safeguarding digital assets.

The increased adoption of offline hardware wallets and multi-signature wallets, both of which add critical layers of security, reflects this momentum. Advances in smart contract auditing tools and stronger compliance standards are also minimizing risks, creating a safer environment for both users and institutions. 

These improvements highlight the industry’s commitment to establishing a more secure foundation for digital transactions and bolstering confidence in blockchain as a reliable financial technology.

In another positive development, in May 2023, the European Council approved the first comprehensive legal framework for the cryptocurrency industry. This legislation sets a new standard for regulatory transparency and oversight, further reinforcing trust.

Financial Literacy Initiatives

The rise of crypto education in the U.S. is playing a pivotal role in increasing public understanding and encouraging adoption. Programs such as Coinbase Earn aim to simplify the onboarding process for new users, directly addressing the complexity and security concerns that often deter people from engaging with crypto.

According to recent data, 43% of respondents feel that insufficient knowledge is a key reason they avoid the sector, highlighting the ongoing need for crypto-related learning. 

Additionally, Chainalysis' 2024 Global Crypto Adoption Index noted a significant increase in crypto interest following the launch of spot Bitcoin ETFs in the U.S. earlier in the year. This development enabled investors to trade ETF shares tied to Bitcoin directly on stock exchanges, making it easier to enter the market without needing extensive technical expertise - thus driving a surge in adoption.

These advancements in security and education are gradually fostering greater trust in the cryptocurrency ecosystem. As the sector continues to evolve, these efforts may pave the way for broader adoption and deeper integration of digital assets into daily financial life.

The Future of Digital Asset Adoption

As digital assets continue to evolve and capture mainstream attention, their potential to transform the financial landscape is becoming increasingly evident. From late 2023 through early 2024, global crypto transaction volumes surged, surpassing the peaks of the 2021 bull market (as illustrated below).

Interestingly, much of this growth in adoption was driven by lower-middle income countries, highlighting the global reach of digital assets.

Below, we explore projections for cryptocurrency usage and its potential impact on traditional banking and finance.

Projections for Crypto Usage in the Next 5-10 Years

Several studies and reports offer insights into the expected growth of cryptocurrency over the next decade:

Global Adoption
The global cryptocurrency market revenue is projected to reach approximately $56.7 billion in 2024, with the United States leading the charge, expected to generate around $9.8 billion in revenue. Statista predicts the number of global crypto users will hit 861 million by 2025, marking a significant shift toward mainstream use.

Institutional Adoption
The 2023 Institutional Investor Digital Assets Study found that 65% of the 1,042 institutional investors surveyed plan to buy or invest in digital assets in the future. 

As of 2024, digital currency usage among U.S. organisations is expanding, particularly in sectors such as finance, retail, and technology. Hundreds of financial services and fintech firms are now involved in digital assets, whether in payment processing, investments, or blockchain-based applications. This includes major companies utilising cryptocurrencies as stored value and exploring stablecoin use cases to enhance transaction efficiency.

Notably, major U.S. companies are increasingly engaging with blockchain and digital assets, as regulatory clarity improves and security concerns are addressed.

Retail Adoption
At present, about 85% of major retailers generating over $1 billion in annual online sales accept cryptocurrency payments. In contrast, 23% of mid-sized retailers, with online sales between $250 million and $1 billion, currently accept crypto payments. This growing trend points to an expanding role for digital assets in retail, especially among large-scale businesses.

Potential Impact on Traditional Banking and Finance

The rise of digital asset utilisation is poised to reshape traditional banking systems in multiple areas. For starters, the growth of blockchain technology and digitised financial services is driving the decentralised finance (DeFi) market, which is projected to reach $450 billion by 2030, with a compound annual growth rate (CAGR) of 46%.

In Q3 2024 alone, trading on decentralised exchanges surpassed $100 billion, marking the third consecutive month of growth in trading volume. This trend underscores the increasing interest and activity in the decentralised finance space.

As Central Bank Digital Currencies (CBDCs) are likely to be adopted by 80% of central banks by 2030, the role of commercial banks in money distribution could diminish significantly. Meanwhile, blockchain technology and stablecoins are expected to revolutionise cross-border B2B payments, with 20% of these transactions powered by blockchain by 2025. Stablecoin payment volumes are projected to hit $620 billion by 2026.

Furthermore, the investment landscape is set to evolve as asset tokenisation scales, potentially reaching a value of $16 trillion, making crypto a standard component in investment portfolios. 

With regulatory clarity expected to improve - more than half of financial institutions anticipate clearer rules within the next three years - crypto integration is likely to become more widespread. These developments emphasise the transformative potential of digital assets across payments, investments, and financial structures globally.

Bridging the trust gap in crypto adoption

The cryptocurrency landscape is experiencing a surge in institutional interest, which could be a pivotal moment for integrating digital assets into traditional finance. Financial giants like BlackRock are at the forefront of this movement, signaling a shift in mainstream perception and adoption of cryptocurrencies.

Historically, the introduction of new investment vehicles around Bitcoin has spurred market growth. As Markus Thielen, founder of 10x Research, highlights, the launch of spot ETFs could bring about a new wave of institutional involvement, potentially driving the next phase of market expansion.

This growing institutional momentum, combined with evolving regulatory frameworks, is reshaping the crypto ecosystem. However, a key question remains: Will these developments be enough to close the trust gap and push cryptocurrencies into mainstream adoption?

As we stand at this crossroads, the future of digital assets hangs in the balance. The coming years will be critical in determining whether cryptocurrencies can overcome persistent skepticism and fully integrate into the global financial system, or if they will remain a niche, yet impactful, financial instrument.
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This year has seen a gradual but significant improvement in cryptocurrency prices from the chilly crypto winter of 2022. Factors such as cooling inflation and a more relaxed macroeconomic situation have given crypto the space to turn upward and settle in the green. While the road to recovery (to 2021 prices) might be long, there is definite hope on the horizon.

Before we dive in, let’s first review the previous crypto bull runs associated with halvings. When it comes to bull runs, there is a historical pattern of prices rising several months after a Bitcoin halving. This effect tends to take place twelve to eighteen months after the halving event.

This article tends to focus heavily on Bitcoin as the cryptocurrency holds a lot of weight in the industry. Bitcoin market trends tend to dictate the way forward for many other altcoins, while this isn’t black and white, it tends to be the norm. When Bitcoin enters a bull run, so too do other cryptocurrencies, and when the Bitcoin price is down, the same applies. 

What is a Bitcoin halving?

Satoshi Nakamoto, the creator of Bitcoin, strongly believed that scarcity creates value. When designing Bitcoin, it was decided that there would only ever be 21 million coins, and while these can be broken down into small decimal places, there is no changing that maximum supply. 

In order to leverage the scarcity and ensure an even distribution of new coins entering circulation, Nakamoto designed a halving mechanism. The mechanism ensures that the currency remains deflationary, controls how many new coins enter circulation, and plays little havoc on the market. 

To understand how a halving works, one must first understand how Bitcoins are mined. Through a decentralized network, new transactions are entered into a mempool while they await confirmation. Miners will then compete to verify them by completing a complex cryptographical puzzle. The first miner to successfully complete the puzzle is awarded the job of verifying the transactions as well as earning the rewards. 

Once all the transactions have been verified they are executed and the data from each transaction is added to a block, which is added to the blockchain in chronological order. The miner then receives a transaction fee from each transaction as well as a miner's reward for adding a new block to the blockchain. 

Every 210,000 blocks, roughly four years, this reward is halved, making it a significant factor in what is known as the halving experiences. In 2009, the miner's reward was 50 BTC, today it is worth 6.25 BTC. While the price tends to increase substantially, the reward is automatically halved at these intervals. Written into its code, the halvings are automated activities that cannot be altered.

Reviewing previous bull runs

Bitcoin's first mini bull run

The first recorded "bull run" in the crypto sector took place in April 2011 when the price of Bitcoin rose 3,000% over the space of three months. After reaching $1 in April 2011, the coin went on to reach $32 in June. However, this price increase was short-lived as the price returned to $2 in November.

The next year the cryptocurrency underwent its first halving in November, ending the year between the $13 and $14 price mark.

2012 halving / 2013 bull run

In the first few months after the halving, the price rose from $13 to $30. By April, one Bitcoin was trading for $100, its then all-time high, spurring interest from curious outsiders. By November, twelve months after the initial halving, Bitcoin broke the $1,000 barrier. This too was short-lived as the price dropped to around $530 a month later.

2016 halving / 2017 bull run

The next halving took place in July 2016, when the price was trading at around $600. After years of the Bitcoin price bouncing between $100 and $900, it finally hit the $1,000 mark again in January 2017, six months after the halving. By mid-May, the price had doubled to $2,000, and by December of the same year, the price sky-rocketed to just under $20,000.

Sparking a Bitcoin frenzy, the digital asset became a hot topic in mainstream media and many market participants hopped on the bandwagon. This also sparked widespread development within the industry, with many altcoins being launched and what has become known as the "ICO craze". Due to the quick ascent of this nascent technology, user adoption and regulation became prominent topics of discussion in financial and regulatory circles.

By December 2018, just a year later, the price had shrunk to $3,236, while in December 2019, Bitcoin was trading at $7,200.

2020 halving / 2021 bull run

In 2020 the world was struck by the Covid-19 pandemic, causing unprecedented damage to economies around the world. While Bitcoin and other digital currencies took a knock, the industry proved to be much more resilient than most other traditional markets.

Dropping almost 50% to lows of $4,900 in March 2020, the price gradually recovered to $9,000 in May when the next halving took place. The upward price trend continued its climb, reaching $29,374 in December, another all-time high.

In the early months of 2021, the Bitcoin price doubled in value reaching $64,000 in April. By July, it was trading around $30,000 again before skyrocketing to $68,000 in November. By January 2022 the price had corrected to $35,000 before the market was faced with several unfavorable factors.

Markets around the world took another hit when Russia declared war on Ukraine, sending the price of everyday items including fuel soaring. Governments increased interest rates to the highest they've been in decades, and global supply chain issues caused by the pandemic continued to drive upset.

With the world in financial uncertainty, not to mention the demise of several cryptocurrency networks and exchanges, many participants pulled their money from the crypto markets as well as tech-based stock investment markets. This saw the price of Bitcoin dip below the $20,000 mark for the first time in two years, causing widespread uncertainty and speculation.

2022 was officially declared a crypto winter and while prices rose roughly 29% year-on-date, 2023 wasn’t the promised land that crypto enthusiasts had dreamed of. 

Are we headed toward the next crypto bull run?

Price increases aside, the Bitcoin Fear and Greed meter observed ( at the time of writing) a hopeful incline from a state of “Extreme fear” to a “Greed” greed rating. This measure of market sentiment is a vast improvement from 2022 and, alongside expert analysis, indicates that the cryptocurrency has moved into the accumulation phase. According to the Wyckoff market cycles, this is the prerequisite to the mark-up phase and indicates the end of a bear cycle.

The digital asset market remains volatile and unpredictable, and one cannot predict what might happen in the coming months or even years. What we do know is that historically bull runs have succeeded halvings, so grab your popcorn we should be in for an interesting ride. 

As all things “metaverse” continue to dominate headlines, the virtual world has established itself as front and centre of mainstream media. Decentraland provides a virtual world where users can buy, sell and trade unique assets and engage in interactive apps and peer-to-peer communication alongside in-world payments. The world of Decentraland has seen impressive growth, and it’s about time you learnt about it. 

At its core, Decentraland is a virtual reality platform that allows users to create, experience, and monetize in-house content and applications. Built on the Ethereum blockchain, Decentraland utilizes two main tokens on the platform, LAND and MANA. 

LAND arenon-fungible (NFT) tokens that provide ownership rights to the digital real estate (land parcels) while MANA is the in-house currency that facilitates the sale of LAND and other goods and services available on the platform, like customising one's avatar, for instance. MANA also allows holders to vote on policy updates, subsidies for new developments, and land auctions. 

Decentraland was designed to provide users access to ​​”new artistic medium, business opportunity, or source of entertainment.” The virtual space is made up of 90,601 individual land parcels, each measuring 16m x 16m (256 square meters), and assigned to particular co-ordinates in its “metaverse”.  Each space is assigned to a LAND NFT which records the ownership. 

LAND owners can then develop the land as they please, with several marked districts varying in size and theme. Holders can then lease out the land or provide paid experiences through the creation of animation and interactions experienced on their particular virtual real estate.

Who Created Decentraland?

Decentraland was created by the Decentraland Foundation, founded by ​​Esteban Ordano and Ariel Meilich in 2015, and holds the intellectual property rights as well as maintaining the platform. Before launching, the foundation, which still holds 20% of the total MANA supply, created a decentralized autonomous organization (DAO) allowing the users to make governance decisions. 

In 2017 the project underwent a successful ICO, raising the equivalent of $26 million at the time. These funds were used to drive future operations. 

How Does Decentraland Work?

The core function of the Decentraland network is to track ownership of land parcels, while users engaging in the platform are required to hold MANA in order to participate. 

Through a system of smart contracts each land parcel is tracked on the consensus layer, with each parcel’s own coordinates, owner, and a reference to the content within the parcel. 

The content layer then holds the specifics for each parcel, including the all static audio and visuals, the placement and behavior of items, as well as P2P interactions such as gesturing, voice chat, and messaging. There is then a real-time layer that facilitates all the social interactions of the user avatars.

Decentraland also hosts a marketplace where users can create scenes and wearables and manage and exchange LAND tokens, priced in MANA. 

What Is MANA?

MANA is the governance and in-house currency for the Decentraland ecosystem. With a total supply of of 2.19 billion MANA, roughly 600 million MANA have been burned in LAND transactions bringing the previous total supply down substantially. 

MANA facilitates the platform’s aim of providing a customizable and shared virtual reality space that connects users around the world.

How Can I Buy MANA?

If you’d like to join the metaverse and become a part of the Decentraland virtual community, you can simply buy MANA directly from your Tap account. As part of a string of newly supported cryptocurrencies, MANA is now available for trade on the Tap app, allowing users to buy, sell and spend MANA as they please. 

The Curve protocol and Curve DAO token form another innovative project to come from the DeFi movement and one that provides a particularly unique and well-designed concept. Improving on functionalities that DeFi platforms like Uniswap and Sushiswap have otherwise neglected, Curve focuses on providing a viable alternative solution to traditional financial platforms in the blockchain industry.  

The Curve Finance platform, launched in January 2020, later released a decentralised autonomous organisation (DAO) alongside the Curve DAO token eight months later. CRV functions as the in-house token of the platform.  

What Is Curve DAO (CRV)?

The Curve platform, formally known as Curve Finance, provides traders with a decentralised exchange on which to swap digital assets. Curve aims to provide minimum price slippage between two tradable crypto assets by focusing on stablecoins or assets of similar value. Through an automated market maker (AMM) and focused smart contracts, the decentralised exchange is able to manage liquidity.  

While the platform can be compared to Uniswap, in reality, it has some key differences and a much higher amount of locked liquidity. The platform and its liquidity providers are more focused on stablecoins and other coins of that nature. CRV tokens fuel the network and are a tradable asset for crypto users.

The Curve DAO provides more decentralised governance to Curve's trading platform. The Curve protocol has grown into a well-respected financial asset within the DeFi ecosystem with its strong DeFi protocol.

Who created the Curve protocol?

The Curve platform was created by a Russian scientist with ample experience in the crypto industry. Michael Egorov both founded the platform and acts as its CEO. He previously co-founded a crypto business focused on building privacy-oriented protocols and infrastructure, NuCypher, in 2015, as well as LoanCoin, a decentralised bank and loans network.

As of August 2020, Egorov holds 71% of the governance tokens after locking up a large amount of CRV tokens in response to yearn.finance’s increasing voting power in the Curve network. In a statement made later, Egorov admitted to “overreacting”.  

How does Curve work?

Launched prior to Uniswap V2, Curve Finance operates similarly to the DeFi platform but has implemented some key differences. The decentralised exchange differentiates itself from the original AMM platform by innovating the liquidity pool trading structure and relevant smart contracts.

The Curve DAO trading platform is managed by a mathematical function called a bonding curve, which is designed to let cryptocurrencies trade for the best possible price amongst each other. Bonding curves are also used by other DeFi trading platforms, like Uniswap.

Due to the Curve DAO platform being primarily focused on stablecoins, its bonding curve is specifically focused on these pegged digital currencies and is able to trade a larger amount of stablecoins with less change in their relative prices in a liquidity pool.

Lending pools

In order for the Curve DAO platform to operate, it requires a group of users who are willing to lock up their cryptocurrencies in order for them to be traded by others. The platform provides a return on their coins plus a portion of the fees from trades when incentivizing liquidity providers.

The platform manages the coins in the liquidity pools by making them more expensive or cheaper, based on their fluctuating amounts, thereby making them more attractive to buyers and sellers using the platform.

On Uniswap, liquidity pools are based strictly on predetermined trading pairs while on Curve DAO the liquidity pools comprise multiple assets. On Curve DAO, entire liquidity pools can also be used as an asset inside another liquidity pool.

How does a trader use the liquidity pools?

Once a trader adds liquidity to a specific pool, through stablecoins or other digital assets, the user will receive a token specific to that pool. 3pool is an example of one of the most popular liquidity pools on the Curve platform.  

While the platform is known to provide trading for stablecoins, it also supports mirrored assets such as renBTC and wBTC. These assets are both built on the Ethereum blockchain and track the price of Bitcoin in a typical derivatives fashion. Since the prices are close in value they can function in the same pool and be traded using the Curve DEX.

What is the Curve DAO token (CRV)?

The CRV token is the utility token and governance token of the Curve DAO platform, providing users with governance rights, an incentive structure for fee payments, as well as providing long-term rewards to liquidity providers. CRV tokens are awarded to users based on their liquidity commitment and length of ownership.  

The Curve DAO token was launched alongside the Curve DAO in August 2020. The maximum supply is 3.03 billion CRV tokens, with 62% of that being distributed to liquidity providers. The rest is allocated between employees (3%), and shareholders (30%), and a small percentage is kept for community reserves (5%). Employee and shareholder allocations work off of a two-year vesting schedule.  

At the time of writing, over 531 million CRV tokens are in circulation, roughly 16% of the total supply.  The market cap at the time was around $365 million, positioning the Curve DAO token network in the top 20 biggest platforms in the DeFi ecosystem.

How can I buy Curve DAO tokens?

If you’d like to buy Curve DAO tokens to include in your crypto portfolio, you can do so easily through the Tap mobile app. Providing a highly secure and equally simple crypto trading platform, users can buy CRV with British Pounds or Euros, or exchange tokens for other cryptocurrencies supported on the platform such as Bitcoin or Ethereum.  

Simply download the app, create an account and follow the steps to get verified through the KYC process. You will then have access to several wallets, and a much simpler crypto trading experience.