Top 10 Cryptocurrency Trends in 2021 Everyone Should Know – Analytics Insight

top-10-cryptocurrency-trends-in-2021-everyone-should-know-–-analytics-insight

Top 10 Cryptocurrency Trends in 2021 Everyone Should Know

Cryptocurrency Trends

A list of top 10 cryptocurrency trends shaping the future of finance.

2020 was a remarkable year for cryptocurrency as COVID-19 accelerated the digital transformation. No doubt, 2021 is also witnessing major breakthroughs and achievements as cryptocurrency trends are shaping the future of finance. We are halfway through 2021, but new developments in the crypto world are emerging each day. In the next six months, we can expect more crypto adoption and top cryptocurrency trends ruling the crypto space.

If you are a crypto enthusiast, you should know the top crypto trends for better investment decisions. Here are the top 10 cryptocurrency market trends in 2021 for everyone to watch out for.

DeFi

Decentralized financial services or DeFi projects will be one of the biggest trends in the crypto world in 2021. DeFi projects have built a strong foundation in the financial field lately. Moreover, experts believe that DeFi will be one of the key drivers for the accelerated adoption of digital storage of assets or tokenization. Also, with the growth of Ethereum (built on DeFi protocols), DeFi will also boom.

Growth of Stablecoins

In 2020, the volume of stablecoins in circulation was increased by 500%. Dollar pegged stablecoins will see more light of the day in 2021 with Tether and USDC being the market leaders. Stablecoins are one of the trending crypto coins today. With the advantages that stablecoins offer, more investors are investing in them to protect themselves from usual crypto market volatility.

Introduction of Tax Regulations

This bubble is definitely growing bigger with the increased adoption of cryptocurrency from different countries across the world. Still today, crypto taxation is ambiguous. But, this year, we might see crypto standard crypto regulations that will govern crypto activities and transactions. This crypto market trend will come into effect soon.

Central Bank Digital Currencies (CBDCs)

Experts say that with regulations coming into the picture, central banks will also be a part of the game with the introduction of Central Bank Digital Currencies (CBDCs). This can also become the future of payments and finance. You must have heard of China creating its own digital money – digital yuan. Similarly, other countries such as the USA, UK, Europe, etc. are attempting to create tokenized money.

Cryptos will go Public

Growing cryptocurrencies may test their waters for IPOs. With crypto exchanges also growing in popularity, even they would go public. This might make crypto a well-established market with major players defining the scope.

Make Way for Exchange Traded Fund (ETF)

Crypto lovers are desperately looking forward to the ETF this year. However, it might take some time as the US SEC has rejected its decision on ETFs for a long time now. Nonetheless, if ETFs get approved, more traders will invest in cryptocurrencies instead of having exchange wallets. This will bring a boom in the crypto world.

NFTs (Non-fungible Tokens)

NFTs are digital assets representing products in the real as well as the digital world. It is quite useful for people who wish to trade items as they can avoid the complex onboarding process of a centralized platform to trade them. NFTs are already widely being used in the art and gaming industry. This year, we will see more adoption of NFTs.

Crypto Tax

Be ready to pay crypto tax as many countries are planning to implement it soon. Governments of different countries are creating tools to monitor cryptocurrency transactions. In 2021, we might see crypto exchanges reporting on their customers’ gains to their tax authorities.

5G will go Mainstream

5G will be extensively used to decide on mining operations, DeFi applications and to introduce new services in the market. Network issues for traders will be resolved as 5G will offer high-speed connectivity, eliminating the need of placing servers close to crypto exchanges.

Millennials’ interest in Crypto

Apart from investors, millennials are really interested in the crypto field. More educational material on cryptocurrency will be available and accessible to guide millennials in the highly volatile crypto market. Crypto market trends today will guide millennials to invest strategically.

About Author

More info about author

You May Also Like

About the Author: Kate