What are the 5 predictions for the cryptocurrency markets for the year 2021 and are they starting to fulfill?
Let’s take a look at 5 most common predictions about cryptocurrencies for 2021.
1. Technology and investor numbers will grow
Among other things, the year 2020 was marked by a higher participation of institutional investors. This will also lead to the growth of professional traders as confidence in cryptocurrencies rises. On the other hand, stablecoins will also grow, they are attractive due to lower volatility and effective diversification. The market capitalization of stablecoins is $ 34 billion and they are already very popular.
2. Clearer regulation
Taxes and regulations should become clearer, authorities are expected to be more organized and taxes will lead to the legalization of cryptocurrencies, which will of course lead to governments receiving revenues from cryptocurrencies. Predictions are much attached to the legal trade in cryptocurrencies.
3. New exchanges
New places for trading and new exchanges will be created for cryptocurrencies, and it is also possible that entrepreneurs will set up their own cryptocurrencies on a large scale. For users, it will be a showcase of new features and competition between businesses will be more dynamic. The use of crypto payments will go hand in hand with this. Some large companies are already accepting such payments. This trend can be expected to grow.
4. DeFi and NFT
DeFi will find more and more application and it will become a part of the mainstream. DeFi grew already in 2020, so it is natural to expect growth in 2021. Last but not least, there will be great interest in NFT, which can provide you with unique art pieces that you will be able to monetize.
5. Forecasts for Ripple and Central Banks
Ripple is currently going through a lawsuit filed by the SEC. Although it was withdrawn from the leading crypto exchanges, it was still in high demand.
Of course, central banks will try to keep up. Therefore, they are still working on the development of CBDC. As for that trend, China is leading the way so far.
Predictions for 2021 look very likely. What will become true and what will not? Hard to say, we have to wait. What do you think?