In times past, the world of cryptocurrency was a foreign concept for many people. They would ask: what exactly is crypto?
Today, this ever-evolving and expanding world fascinates investors. Many have predicted big changes are coming, both positive and those serving as a note of caution.
As the market attempts to strike a balance between profit potential and the risk of losses, here are 7 major trends which could change the crypto world.
1. Stablecoins may surge
In late 2020, the number of stablecoins in circulation surged, with a rise of around 300% – making them one of the most-used payment networks in the world.
With this in mind, Blockchain Capital believes that dollar-backed stablecoins will rise to about $150 million in 2021. It also believes that Libra (Diem) will grow as popular as Tether and USDC.
2. Assured continued growth for DeFi
Although 2020 was not a great year for decentralised finance in terms of governance tokens, the resilient DeFi is experiencing assured growth in 2021. This is because the number of users has increased tremendously and will continue to do so.
With continuous innovation and new products on the market, researchers believe that long-time DeFi problems will soon be solved – such as finding a solution to accurate price data.
3. Ethereum is on the rise
Many people believe Ethereum will soon experience growth of great magnitude.
This is because the blockchain is the base for both DeFi and NFT projects – but also because developers are now working on an upgraded Eth2.
4. Growth for Non-Fungible Tokens (NFTs)
The NFT market is not showing any signs of slowing down.
Around the world, big brands, football teams, filmmakers – such as the makers of Dr. Who – and many others are fast beginning to offer NFTs to avid gamers.
5. Ripple may have it rough
The company is yet to recover from the lawsuit filed against it by the U.S. Securities and Exchange Commission (SEC).
Many major exchanges have delisted its XRP token in recent months, but others continue to allow it to be traded. However Ripple versus the SEC could continue to cause problems for the project.
6. A bittersweet time for regulation
The government has put a watchful eye on the crypto market cap; with its continuous rise, this may be a good or bad thing.
Making digital assets legitimate and giving entrepreneurs a clearer view of the crypto market is a good thing – but there may be more restrictions on crypto in countries that haven’t been very favourable towards it.
In India, for example, there are rumours that the government has plans to completely ban crypto trading via crypto wallets and other trading platforms.
7. PayPal will come into the market – big-style
In 2020, PayPal hosted a low-key launch of its new crypto platform in the US. This platform allows users to buy, sell and hold Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Millions of people worldwide can now use this platform to acquire digital assets for transacting with merchants.
Cryptocurrency