5 Crypto Trends To Watch Out For In 2021
2020 has been a year like no other. The year has been chaotic, eventful and is finally coming to an end. In the crypto realm, 2020 has been a momentous one as it hosted new record token prices and unprecedented industry news.
With wider adoption and greater institutional interest, digital assets and the blockchain industry are on a fast track to greater growth in 2021!
Here are 5 trends to watch for in 2021.
More institutional players in the digital asset game
Digital assets were more widely adopted in 2020, suggesting increased institutional interest in Bitcoin, as well as other digital assets in 2021.
Compared to previous years, institutional investors seemed more willing to venture out and explore digital assets in 2020 – positioning the market for even greater market capitalization growth in 2021.
In the last quarter of 2020, Paypal enabled customers to buy and sell Bitcoin and other virtual currencies using their Paypal accounts, in addition to offering Bitcoin as a payment option for over 26 million merchants. .
Square, the company that owns Cash App, has invested $ 50 million in Bitcoin, demonstrating significant interest in cryptocurrency.
“We believe that bitcoin has the potential to become a more ubiquitous currency in the future,”
Square’s CFO, Amrita Ahuja.
With leading multinational companies like Paypal and Square leading the way, the stage is set for other institutional players to get a slice of the crypto pie in 2021.
Further development of CBDCs
Central bank digital currencies have been hotly discussed in 2020.
Several central banks around the world are considering launching their own central bank digital currencies. The Central Bank Group – made up of experts from TThe Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Sveriges Riksbank and Swiss National Bank, as well as Bank for International Settlements (BIS) – conduct extensive research on CBDCs, analyzing the pros and cons of releasing such a currency in their home country.
The Central Bank Group will invest in a collective effort to assess the CBDC and its use cases, encompassing economic, functional and technical design choices and cross-border interoperability.
Countries like China are already way ahead of the curve, having already launched pilot tests for the digital RMB, a digital form of Chinese currency distributed by the Central Bank, in four major cities.
Accelerated demand for blockchain solutions, beyond financial use cases
When the global pandemic hit, the demand for contactless transactions increased dramatically. Many industries have been forced to accelerate their digital transformation to increase their business processes and face new challenges. This has led to an increase in demand for technological solutions, one of them being blockchain technology.
Besides financial services, blockchain solutions such as OpenCerts.io, which make it easier to issue, verify, and retrieve digital certificates, have become crucial, due to social distancing regulations and the lack of graduation ceremonies. for the class of 2020.
It seems our soil is fertile ground for fintech growth – Singapore ranks among the top blockchain leaders in the world, alongside the United States, China and Europe. The same survey conducted as part of the Singapore Blockchain Report 2020 found that blockchain technology had become one of the top trends in Singapore by 2021.
Growth of the DeFi sector
DeFi was undoubtedly one of the hottest topics in the crypto space in 2020.
In February 2020, the Total Locked-In Value (TVL) in DeFi exceeded US $ 1 billion, which sparked celebrations from the Ethereum community. Those numbers have since grown exponentially over the year, with the current total value stuck in DeFi at $ 14.32 billion.
With more and more investors entering yield farming, coupled with the growing demand for DeFi tokens, major cryptocurrency exchanges have expanded their support for DeFi tokens with its growing interest.
The DeFi industry will continue to evolve and grow, and may be subject to more stringent regulation by 2021.
Higher heights for Bitcoin and other digital assets
Earlier last week, Bitcoin crossed $ 500 billion in market capitalization, eclipsing Visa, Walmart and Samsung. As many would have observed, crypto prices were very volatile this year – at the time of writing, Bitcoin and Ethereum are registering one-year gains of around 290% and 447% respectively, ending the year on a very remarkable note.
With stronger regulatory support, wider adoption, and increased institutional interest, Bitcoin and other digital assets may well be poised to experience even more phenomenal growth in the year to come.
This article originally appeared on Coinhako and is republished here with permission.
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