Key Takeaways

  • Crypto.com has revealed a report that particulars 2020 in evaluate and makes predictions for crypto in 2021.
  • The report focuses on Bitcoin-related market tendencies, in addition to common adoption tendencies.
  • It additionally discusses Ethereum- and DeFi-related tendencies.

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Crypto.com has revisited the cryptocurrency highlights of 2020 in its yearly market evaluate. The report additionally makes a number of predictions concerning cryptocurrency tendencies in 2021. 

Bitcoin Is Nonetheless Rising

In line with Crypto.com’s annual report, the cryptocurrency market continues to be in its infancy. It discovered that there are solely about 73 million crypto customers worldwide, a mere 1% of the worldwide inhabitants. 

Moreover, although crypto markets have grown quickly and achieved a capitalization of $1 trillion over the previous yr, the market’s dimension continues to be minuscule in comparison with conventional finance. As an illustration, pension fund belongings in 37 OECD international locations alone whole $32 trillion, dwarfing the full cryptocurrency market cap.

Crypto.com means that buyers ought to count on continued inflows by way of new entrants and institutional buyers. One of many strongest indicators of rising institutional adoption in 2021 will probably be progress within the choices market, which ought to enchantment to conventional finance.

Lastly, the agency expects that the regulators will more and more impose working licenses on crypto companies and gather cash from the sector.

Ethereum and DeFi Prediction

Crypto.com additionally examined Ethereum intimately. The corporate’s report predicts that the expansion of decentralized finance (DeFi) will proceed in 2021. Furthermore, the agency expects that DeFi tasks which are simple to put money into, corresponding to aggregators and decentralized asset managers, will acquire recognition. 

On the destructive aspect, Crypto.com highlighted the very fact Ethereum is “in dire want of an improve in scalability.” Layer-2 options like Plasma, sidechains, ZK-Rollups, and Optimistic Rollups are already underway. However, the agency predicts that some functions will migrate to competing blockchains for larger effectivity. 

Crypto.com moreover famous that Ethereum also needs to witness a continued uptick in buying and selling associated to non-fungible tokens (NFT), particularly digital art work and crypto collectibles.

Disclosure: The writer held Bitcoin and Ethereum on the time of publication. 

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