A lot of unexpected occurrences took place in 2020; it was a year that tried the patience of both the employed and the unemployed. However, in the cryptocurrency space, 2020 marked a year in which record-breaking token prices and unprecedented industry news took place. In this article, we will share some emerging trends in the crypto space you shouldn’t miss.
In view of the above, considering the wider adoption and greater institutional interest, digital assets and the blockchain industry is riding on the fast lane to greater growth in 2021. Below are some of the emerging trends in the cryptocurrency industry:
Increase in the Number of Players
Currently, digital assets are being adopted widely. This is a clear hint that greater institutional bodies are interested in Bitcoin as well as digital assets. Compared to previous years, there is an obvious surge in the rate at which players troop into cryptocurrency trading.
Institutional investors are now more willing to venture into and explore digital assets, hence, positioning the crypto market for even greater growth in market capitalization.
Development of CBDCs
CBDCs are known as Central Bank Digital Currencies and were one of the issues of the finance space in 2020. Several central banks across the globe are exploring the launch of their own central bank digital currencies.
In fact, The Central Bank Group – made up of experts from The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, and the Swiss National Bank together with the Bank for International Settlements (BIS) are all currently working on conducting extensive research on CBDCs, analyzing the benefits and drawbacks of releasing such a currency in their home jurisdictions.
Increased Demand for Blockchain Solutions
Due to the pandemic, an increase in the demand for contactless transactions rose significantly. Many companies were placed in the situation to accelerate their digital transformation to augment their business processes, and keep up with new challenges.
This however led to an increase in the demand for tech solutions, one of them being blockchain technology. This is one of the most noticeable new trends in the cryptocurrency industry.
Rapid Development in the DeFi Sector
DeFi is the shortened term for “Decentralized Finance”, it is an umbrella term in the public blockchain space geared towards disrupting the traditional finance world and was one of the most discussed concepts in 2020.
In February 2020, the total value locked in DeFi crossed US$1 billion, prompting celebrations from the Ethereum community and that value has exponentially increased with more investors dabbling in DeFi tokens. Leading crypto exchanges have expanded their support for DeFi due to its growing interest.
More Room for Bitcoin and Other Digital Assets
Crypto prices are increasingly becoming volatile and this marks a remarkable season for the industry. With greater regulatory support, wider adoption, and heightened institutional interest, Bitcoin and other digital assets may just be in the position for even more phenomenal growth in the years to come.
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