Cryptocurrency Trends To Watch In The Coming Year
Cryptocurrency trends to watch in the coming years
The cryptocurrency world has been roller coasters over the last decade, whose downturn and downturn have risen and prices fluctuate brutally, taking into account market moods and technological progress. As the New Year begins, experts predict significant trends that will form the future of this space. In this article, we will take a closer look at some of the most interesting cryptocurrency trends that will be viewed in the coming years.
1. Increased acceptance of institutional investors
As institutional investors, such as risk insurance funds and pension funds, become more convenient with cryptocurrencies, their investment portfolios move to digital assets. This increased adoption is expected to increase demand for cryptocurrencies, thus increasing prices and increasing market capitalization.
According to the Deloitte report, the total value of the institutional investors’ cryptocurrency was $ 143 billion in 2020, ie from $ 20 billion in 2017. As an institutional institutional institutional institution, it is in poverty and with.
2. Growing adoption in main companies
Cryptocurrencies are no longer just enthusiasts; The main companies begin to accept them as a way to increase efficiency and reduce costs. Companies such as Microsoft, IBM and Amazon have already included cryptocurrencies in their payment systems or use them for traditional currency alternatives.
The increasing acceptance of cryptocurrencies between the main companies will increase the level of adoption, making it easier for individuals to participate in space. As more and more companies are following an example, we can expect consumer interest to increase consumer interest during this type of operation.
3. Increased focus on decentralized finances (Defi)
Decentralized funding (Defi) is a rapidly growing segment in cryptocurrency markets. Defi platforms allow users to lend and borrow cryptocurrencies, do not require intermediaries, reduce operation fees and increase fluid increase.
Conformity of the Chainasity Report 2020 In the fourth quarter, Defi transactions increased by 400%compared to the same period last year. This growth is expected to continue in the New Year, and more Defi platforms will be launched and existing ones will expand its supply.
4. Transition to central bank digital currencies (CBDC)
The Central Bank Digital Currency (CBDC) attracts attraction as governments begin to explore their potential benefits around the world. CBDCS finally thinks about how we think of currency, providing a digital alternative to traditional Fiat currency and potentially reducing operations.
The European Central Bank has already released its CBDC called E-Cur/EN, which is currently a beta test. Similar projects are held in other countries such as Japan, China and South Korea, which suggests that CBDC is becoming an increasingly popular solution for governments who want to reduce their dependence on traditional currencies.
5. Increased adjustment
As cryptocurrencies acquire more basic admission, regulatory authorities around the world begin to pay attention. Governments are fighting unregulated exchanges and institutional investors require stricter rules.
The U.S. Transaction Commission (CFTC) has issued a statement calling for increasing the transparency of cryptocurrency operations and the European Union Securities Market Service begins a new regulation directed at investors.
6. Increased attention to security
Cyber security threats in cryptocurrency space are becoming more pronounced: hackers direct exchange, wallets and individual users.