We’re now in the third generation of cryptocurrency technology, which initally launched with the inception of Bitcoin (BTC) in 2009.
According to CoinMarketCap, there are more than 23,000 cryptocurrency tokens currently traded. These entities boast a cumulative market capitalisation value of $2.31 trillion (£1.77 trillion), while the evolution of crypto has also helped the technology to underpin a far wider number of applications.
These include crypto gambling, which is currently at the centre of a market that’s worth approximately $250 million globally. But what trends are defining this market in 2024, and how will they impact the user experience?
Increased Adoption and Acceptance
Universally speaking, crypto tokens are becoming more widely adopted across a number of different industries and business types. This trend has been helped by the emergence of third generation tokens, which have been designed in part to tackle the lack of scalability associated with earlier coins and create a much wider range of potential applications.
It’s estimated that three out of the five largest banks in the world now permit some level of crypto exchange, while major commercial brands like Ferrari have also started to accept selected tokens as payment recently.
This is a response to demand, with the number of cryptocurrency users having increased markedly in 2021 alone, showcasing an incredible rise of 178% during this period. As a result, there are now more than 900 crypto casinos available online, while this number is also expected to increase exponentially in the coming years.
The combined weight of gambling-related cryptocurrencies has peaked above $150 million too, so bettors will be able to stake a growing number of tokens over time. For example, you can bet with Stake in India and wager exclusively using crypto tokens, with casinos of this type being established across the globe.
The Advent of Demonstrably Fair Gaming
While it’s widely accepted that online casino games have a variable edge that’s in favour of the house, this isn’t always communicated clearly or accurately. The edge is typically higher in games of chance like slots, which just happens to be the most popular iGaming vertical.
Of course, casinos are required to publish each game’s return-to-player (RTP) rate, which can also be subtracted from a value of 100% to reveal its house edge. Still, beginners can find it hard to identify the most generative and demonstrably fair games, but crypto’s blockchain technology can help in this respect.
The reason for this is simple: as blockchain’s code is open-source and requires the odds of each individual game, hand and spin to be recorded for prosperity.
These precise odds and their implied probability values can be viewed by players at any time, helping them to understand the house edge at-a-glance and make more informed game selections in real-time.
The Emergence of Decentralized Finance (DeFi) Protocols
Decentralized Finance (or DeFi) is a key component of third generation blockchain iterations, and is able to offer various financial instruments without the deployment of intermediaries like banks or exchanges. Instead, these assets can be managed and distributed via smart contracts, negating third party control or fees.
This is one of the main advantages offered by crypto casinos, as players can wager for less and retain control over their bankroll at all times. Similarly, DeFi protocols are creating more seamless payment experiences for players, while also integrating different systems and making odds information immediately accessible.
It’s estimated that the overall DeFi market will grow by an estimated 20% during the next five years, and the crypto-gambling industry will play a key role in this expansion.
This trend will also become more apparent to crypto gamblers throughout 2024, translating into a much better experience overall!
