Veronica P.
The pandemic year has seen a dramatic surge in cryptocurrency investments. Bitcoin skyrocketed over the last days of 2020. Both Bitcoin and Ethereum have proved resilient in a chaotic environment, and XRP had to deal with a hard regulatory blow from the SEC. Still, it will likely recover if the next administration is more crypto-friendly.
In a context of rising institutional interest, proliferating stablecoins, and pending ETF approval, we anticipate a spectacular 2021 for the crypto space.
2021 Rising Trends
- Institutional investors will contribute to surging trading volumes
- Increased crypto integration into traditional stock exchanges (Recent developments aligned with this trend include Coinbase going public and S&P launching a crypto index)
- Bitcoin ETF approval could bring crypto into the mainstream
- Stablecoins as catalysts of change. As a more stable version of digital currencies, they could open up a new market of more risk-averse investors
- Blockchain will continue to see new applications, attracting government investments and further stabilizing the industry
- More mainstream adoption of bitcoin thanks to integration by the likes of Paypal and Square
- Bitcoin will see increased competition from tech giants like Facebook and Google
- Central banks around the world will issue digital currencies. According to BIS, at least 80 percent already have CBDC projects underway
- China’s digital yuan will move closer to nationwide adaptation
- The Biden administration will move to regulate cryptocurrency without hindering innovation
- The COVID pandemic will continue to accelerate the transition from fiat currencies to crypto
- The blockchain market will grow exponentially on a planetary scale
- Regulatory frameworks for Fintech will surge around the world
- DeFi service alternatives will lure more corporate and individual consumers away from traditional banking
- One-third of blockchain-based projects will make it into production
- Private blockchains will flourish, spreading through the B2B space
- ZKP (Zero-Knowledge Proof) will facilitate real-time verification without sharing sensitive information
- Bitcoin’s success will herald the proliferation of new digital currencies
- XRP will continue to recover, especially if the new SEC chief is more lenient than his predecessor