The story of cryptocurrency has been bittersweet. During the rise, demand for cryptocurrency is at an all-time high. This trend is reflected in investor engagement in trading applications. In addition to serving as a speculative asset, cryptocurrency is undergoing fundamental development and becoming increasingly embedded in real-world business. Every year, hundreds of speculative forecasts are produced, many of which show little relation to reality. Some of the most important stories that will dominate the crypto sector this year have yet to emerge, but we are still spotlighting some of the trends and projections for the crypto industry.
A big year for Ethereum
In 2021, Ethereum will make news on several fronts — and not only because it is the blockchain that serves as the foundation for Defi and NFTs. Work on Eth2 has now officially commenced, and the crypto community will be watching with bated breath to see how this update proceeds. Will everything go as planned, or should we expect more delays? Of course, all of this comes before we get to ETH. Can the world’s second-largest cryptocurrency reclaim all-time highs of $1,432 — and will optimistic predictions of a leap to $2,000 or even $9,000 come true?
Birth of New Cryptocurrency Exchanges
Cryptocurrency Exchanges remain the open choice for traders to get their desired currencies. We anticipate a significant increase in the number of additional cryptocurrency exchanges in the future.
On the other hand, exchange owners benefit indefinitely by collecting trading fees, deposit fees, margin trading, etc. As a result, numerous crypto companies and enthusiasts have shown an interest in establishing a crypto exchange platform. Therefore, creating your cryptocurrency exchange from scratch or utilizing white label cryptocurrency exchange software is one of the most incredible ways to get your blockchain business off to a good start.
PayPal Facilitating Crypto Purchase and Holding
PayPal is one of the most crucial payment platforms in the world. So the company’s statement that it will enable crypto purchases over its network is a huge step forward.
PayPal’s new crypto service, which allows Bitcoin, Bitcoin Cash, Ethereum and Litecoin to be purchased, traded, and stored, is expanding globally after a low-key introduction in the United States. As a result, hundreds of millions of people will be able to purchase digital assets and spend them with a wide range of merchants. An early study from Mizuho Securities following the introduction in the United States showed that 20% of PayPal customers questioned had fully utilized the crypto functionality. Similar worldwide adoption would indeed send shockwaves across the business – and shake up the payments sector.
Most companies also accept PayPal for international transactions, and crypto integration makes it easier for businesses to get payments through cryptocurrencies.
Stablecoins to Take the Lead
Stablecoins are cryptocurrencies that are designed to reduce price volatility. These currencies are intended to be pegged to a stable asset, such as cryptocurrencies, exchange-traded commodities, or fiat money. According to Blockchain Capital, the number of stablecoins in circulation increased by 500% in 2020, establishing their status as “one of the world’s most widely utilized payment networks.”
Stablecoins may be the most significant cryptocurrency trend to invest in 2021. Two factors might be driving the growth of stablecoins. The first is the insecurity of non-centralized tokens, and the second is the expected dethronement of tether, the current stablecoins industry leader. Currently, some popular stablecoins are actively present in the global crypto market, such as Tether, Binance USD, True USD, and more.
Growing Adoption of Defi
Defi is an abbreviation for Decentrali Finance, and it has been one of the most significant blockchain developments in the business since 2019. Defi is a financial-based decentralized blockchain idea solely utilized to create cryptocurrency tokens, wallets, smart contracts, and exchanges. As a result, businesses can turn to Defi for loan options that do not follow the cumbersome processes of traditional banking. It includes all digital assets, protocols, peer-to-peer apps, and other components.
New Cryptocurrencies will be Introduced.
The Crypto industry is creating new crypto fans all the time. So usage of cryptos is also increasing daily. Thus, many business class people and companies are developing new cryptocurrencies all the time. Sweden is experiencing similar trends. The Riksbank, Sweden’s central bank, announced the launch of e-krona, a planned digital currency that will employ distributed ledger technology, in February 2020. The government has claimed that the primary motivation behind this endeavor is the obsolescence of physical money.
Cryptocurrency is a sea of possibilities just waiting to be discovered. Therefore, businesses should sail boldly and scan the horizon for areas where they might best leverage their resources. These trends are expected to affect cryptocurrency in the near future, and companies should examine them to guide whatever trip they embark on.