The biggest main crypto adoption trends in 2021:
- The continuing institutional/corporate adoption of bitcoin,
- The growth of platforms that support blockchain interoperability and external communication,
- The increasing expansion of Ethereum and DeFi.
Crypto adoption will gain further steam in 2021, according to experts speaking with Cryptonews.com. To date, Bitcoin (BTC) and other cryptoassets have had a very good (yet turbulent) 2020, and with the global economy expected to continue stagnating into 2021 (and beyond), crypto might win additional converts with its promise of greater returns and independence from traditional finance.
2020: How accurate were predictions last year?
Industry players were pretty accurate when sharing their predictions last year.
They predicted that Bitcoin’s May halving would increase demand for the cryptocurrency: this has generally been the case, with the price of bitcoin rising from a low of USD 5,000 to just under 9,000 in the weeks before May 11, and then rising steadily afterwards, briefly hitting USD 14,000 on some exchanges on October 31. However, it still can be argued what was the effect of the halving alone.
BTC price chart:
They also predicted the rise of DeFi (decentralized finance): from a total value locked in of USD 676m on January 1, the sector has grown to USD 11bn as of writing.
Central bank digital currencies (CBDC) were another thing they said “will gain traction as an idea.” This was also largely true: the People’s Bank of China completed a digital yuan trial in October, while a healthy number of other central banks — such as the European Central Bank and US Federal Reserve — are exploring their own alternatives, while Combodia and Bahamas have already launched their CBDCs.
Ethereum and DeFi
DeFi has witnessed spectacular growth this year, which in turn has boosted Ethereum (ETH) and solidified its position as the number-two cryptoasset/platform. This might continue next year, particularly as the low-interest rate environment drives investors towards DeFi.
“Ethereum is also positioned to see increased adoption,” said Jason Wu, the CEO and co-founder of DeFi network DeFiner.
“First, it is the network around which the vast majority of DeFi activity orbits. There are also massive numbers of transactions and trades involving stablecoins, and the largest ones all operate on the Ethereum network.”
Wu also suggested that 2021 will witness the rise of ERC-20-based non-fungible tokens, which “will see continued rise in the art, creative, and, eventually, the financial services space.”
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