The Blockchain and Crypto worlds are evolving at breakneck speed. Every month, a new promising coin, a new fundraising mechanism, or a new way to community involvement emerges.
2020 was an amazing year for those who follow and engage in the crypto industry – the Defi and DEX explosion, the debut of ETH 2.0, new intriguing projects and niches, and, of course, BTC breaking through its ATH – drew everyone’s attention.
Because I work with a lot of fintech and blockchain firms, I’m able to spot new trends, and I believe that sharing my thoughts with you is vital. What can we anticipate in 2021? (However, we’ll leave trading advice and BTC or other currency price forecasts aside.)
DeFi and DEX will continue to expand.
This year has been a standout for the Defi sector. A fast increase in the amount of USD locked in various projects (now estimated at 13.5 billion), the emergence of new intriguing initiatives, and the entire world becoming acquainted with the terms’ staking,’ ‘farming,’ and ‘governance token.’
I believe that 2021 will see an increase in the number of projects and a greater supply on the Defi market. Nonetheless, keep financial security in mind and double-check project facts, and don’t put your faith in super-fast earnings-based just on word of mouth.
DEX, or Decentralized Exchanges, are emerging alongside the DeFi Industry. The year 2020 was a watershed moment for several DEXs, with UniSwap being the most visible example. This trend, as well as the IDO trend, will only strengthen in the following year of 2021.
International corporations and institutional investors are turning to Bitcoin.
Several firms stated this year that they are converting a portion of their reserve assets to BTC. MicroStrategy, PayPal, Galaxy, and Square are among the most vocal. And there are rumors of more such offers every month. Of course, this is a good indication for the market as a whole. This tendency, I believe, will continue in 2021. At the same time, such behemoths do not acquire in such massive quantities for short-term speculation, implying that they would HODL their Bitcoins. This, in turn, should have a favorable influence on the major asset’s price.
NFT coin and project growth
This year, I wrote about NFT tokens and what they are. The concept itself is not new and has been around for quite some time in the crypto market. There had already been some high-profile examples, such as when one of Andy Warhol’s paintings was tokenized and sold in this manner.
NFTs will advance quicker in 2021. After all, there are a plethora of various apps that cover more than just games and arts. It may be used in a variety of sectors, including real estate and law.
And now, media behemoths like the NBA and UFC are collaborating with the NFT sector.
Central Bank Digital Currencies (CBDC)
Since 2016, rumors and expert opinions have circulated that several governments would soon begin the shift to Central Bank electronic money (often referred to in the media as government cryptocurrency).
However, it became obvious this year that the world is closer to such a shift than it has ever been. First and foremost, China set the race’s pace. This is something I wrote about here. Meanwhile, China has begun testing its e-currency, and many other nations have said that they are planning their own advancements in the field of government electronic money. It is doubtful that we will see an immediate rejection of Fiat.
ETH 2.0 and the infrastructure that supports it
The introduction of ETH 2.0 was one of the major Crypto events of 2020. More than 2 million ETH have already been trapped in the network. This is, however, simply the first part of the upgrade. We anticipate a new consensus method, staking, and quick and inexpensive transactions in the future; all of this is exciting and has the potential to propel the DeFi industry forward at a rapid pace. ETH will be more intriguing to watch in 2021 than it has ever been.
The number of STO marketplaces and tokenized assets will grow.
The STO market was not particularly active in 2020, especially when compared to the DeFi market. However, I am confident that tokenized assets will have a bright future. And the first piece of good news came at the end of 2020 when the SEC announced that it will boost the ceiling for regulated financing fees that may be generated through the so-called Regulation Crowdfunding Campaign from $ 1 million to $ 5 million. This will allow securities to be sold without being registered with the SEC. In addition, several European countries are discreetly supporting the idea of tokenizing assets and generating funding in this manner. And one of the major exchanges, Bittrex Global, has begun trading in tokenized shares.
Will the year 2021 be the year of STO? While it is impossible to determine, the ice has clearly shifted, and we will undoubtedly see more incidents and reports from this region.
I attempted to keep my evaluation as brief as possible while still providing relevant information. In reality, there are several more issues on which we might speak. However, these are the industry patterns that I am seeing right now, without getting into trading themes or price forecasts. We may continue our conversation on Twitter.