Some Cryptocurrency Market Trends to Watch Out for in 2021
2020 was a breakthrough in the history of the Crypto market. Bitcoins from $7000 to $50,000 and still growing swiftly. The current Bitcoin Price in India is approximately $48,973.
It’s always exciting yet surprising to either predict the market or see the market cap reaching new milestones. The trends are in some way in favour of cryptocurrencies.
Well, a tweet from Elon Musk is so powerful that it creates an imbalance in the market. Talking about Dogecoin, which was made for fun, has now risen to such an astounding figure.
With the wider adoption of cryptocurrency and Bitcoin Prices in India Today, people are going gaga to pull profits out of it. However, every part is meant to be analyzed before you invest.
Various trends affect the market that changes the sentiments and eventually the stability of the market. Here are some trends of 2021 that you should ponder upon.
Institutions Adopting Digital Currencies
The adoption seemed quite real and healthy last year. Besides, the roasting Bitcoin Prices make that even a bolder reason for institutions to adopt.
From financial payments solutions to cross-border facility, Digital assets are being accepted wholeheartedly.
Talking about stores that accept Bitcoin increases the engagement of the customers to transact through bitcoins.
Companies like Square owns a cash app, invested $50 Mn in Bitcoins, revealing interest in digital assets.
CBDCs and The Future
Central Bank Digital Currencies came up when the concept of digital assets found to be favourable and important for the future.
Banks like The Bank of Canada, Bank of England, Bank of Japan, Swiss National Bank, etc., are into CBDCs and analyzing every corner leaving no room for flaws or challenges that could come up.
Growing DeFi Sector
Well, DeFi has revolutionized the financial system unlocking every service that had always been a dream only. From Smart contracts system to insurance collateral and many more, DeFi has been accepted as an important and essential norm across the world.
In May 2020, this time last year, the total value recorded in DeFi was around $900 Mn, along with celebrations in the Ethereum community. That value has been expanding like the universe, and as of 2021, the value sums up to $84.18 Billion.
Expanding Bitcoins and Altcoins
2 months back, the market capitalization of Bitcoin alone was half a billion. Since then, it’s been tremendously increasing, crossing the $1 Bn mark recording new figures.
People are Buying Cryptocurrency in India despite the market keeps on floating. Cryptocurrency in India has become a new trend and reliable thing in the last few years.
If institutions, the financial system, and investors keep on investing in Bitcoin, that day isn’t far when it will cross the one and a half billion mark. A phenomenal and unexpected figure.
The Demand for Blockchain Solutions
Every cryptocurrency runs on Blockchain Technology that gives a platform to these coins. Besides the support, it records all the transactions made that’s open to anyone.
This pandemic has created havoc in every field. From financial challenges to loss of employment, coronavirus has checkmated the world.
But blockchain technology comes up with new contactless transactions allowing users to Invest and exchange tokens from their homes.
Companies are developing new plans to accept digital methods that reduce the burden created by lockdown across the world. This led to an increase in demand for technical solutions and eventually acceptance of Blockchain.
Services like issuances, verifications, transparency makes it a reason for agencies to come up and adopt these new trends.
According to Singapore report 2020, it revealed that blockchain technology has emerged as one of the top trends for Singapore.
Conclusion
Trends are something that needs deep research digging out new ideas for the development. Moreover, self-research is quite a necessary thing to learn and earn from the Crypto market.
However, it’s a sentimental game that can either take a flight or drown in a fraction of seconds. It takes time to understand and interpret the trends in the market.
