Exploding Trends Of Cryptocurrency in 2021
This article gives you the information about the trends in cryptocurrency of 2021
The 2020 crypto bull run was very different from the 2017 bull run. Although individual investors and whales had driven the former rally in large proportion, the rise in 2020 was due to increased institutional interest in digital currencies.
This gives us hope of cryptocurrencies eventually being accepted over their years, which in turn could lead to mass adoption. However, blockchain technology also saw a huge popularity rise in 2020, with multiple industries interested in improving business activities and processes. All thanks to Covid-19, as it accelerated the digital transformation worldwide.
The global blockchain market is expected to grow from $4 billion in 2020 to $39.7 billion by 2025, at a CAGR of 67.3% over the next 5 years. 2021 will probably be another good year for cryptocurrency with such optimism on the cryptocurrency market.
In terms of institutional interest, how are Central Bank Digital Currencies planning out in 2021?
CBDCs are not the only institutions with an interest in them. However, one of the key factors driving interest in cryptocurrencies in 2021 is an increase in CBCD projects. Central banks around the world are increasingly interested in launching their own digital currency. Mostly because, according to the most recent BIS report, 80 % of all central banks are weighing the benefits and drawbacks of CBDCs.
In response to Covid-19, the Chinese government has accelerated their CBDC project, putting them ahead of the rest of the world. These projects are expected to accelerate in 2021, owing to the increased digitalization of economies around the world, all of which will aid globalization at a time when most economies are looking for ways to accelerate recovery. This is good news which is one of the main drives of cryptocurrency values.
Things that influence crypto space in 2021
The DeFi projects have quite effectively identified cryptocurrencies in the financial field, so in 2021 the DeFi projects could be the largest cryptocurrency trends. As in 2020 DeFi started with a value of 683,35 million dollars in total locked assets and ended the year with well over 14 billion dollars, a growth of over 2,000%.
The DeFi sector has a huge potential of closing the gap in lending, insurance, and many other derivatives between conventional financial services and the unbanked. This also marks great news for Ethereum, the platform that builds a large portion of DeFi protocols. A DeFi boom could mean that ETH investors will also become more interested.
The much-expected cryptocurrency ETF will see the light of day in 2021
Enthusiasts of Crypto long sought a Bitcoin Exchange Traded Fund similar to ETF for major investors. However, the US SEC has long refused or postponed its decision on these ETFs.
If ETFs are approved, cryptocurrency could be opened up to a massive population of investors eager to take part in the market, but who are not prepared to take the risk of purchasing and selling coins directly on the exchanges.
If Bitcoin skyrockets, ETH isn't far behind. What to expect from this 2021 crypto?
Bitcoin has had a dream start, at least through the second half of 2020. Provided that BTC price reached $40,000 in early January and hasn't fallen below $30,000 since then, the bull run has continued into 2021.
ETH started the year at about $740 and by January 19 had surpassed the $1,400 mark. ETH, like Bitcoin, is on the rise and has stayed above the $900 mark so far in 2021, amid price fluctuations.
Given that Ethereum is the network on which smart contracts are executed, the future of ETH appears to be extremely bright. It also serves as the foundation for decentralized applications (dApps). As a result, the Ethereum ecosystem is likely to be the source of real-world cryptocurrency use cases.
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