Cryptocurrency market trends 2021

This is a great time for those who have not yet had time to invest in cryptocurrencies. Today there are many uptrends in the digital assets market, which, according to experts, will dominate for more than one year. Let’s take a closer look at the 2021 cryptocurrency market and outline its trends together with ProstoCoin. […]

Cryptocurrency market trends 2021

This is a great time for those who have not yet had time to invest in cryptocurrencies. Today there are many uptrends in the digital assets market, which, according to experts, will dominate for more than one year. Let’s take a closer look at the 2021 cryptocurrency market and outline its trends together with ProstoCoin. This knowledge will allow you to gain an advantage in the future.

What is the cryptocurrency market

The cryptocurrency market is an economic system based on the principles of free enterprise and limited government intervention. Currently, the crypto market is filled with a variety of assets and forms of ownership – cryptocurrencies, altcoins, tokens, futures, NFT, decentralized finance and more.

Today, the cryptocurrency market has several thousand different assets, and its total capitalization exceeds $300 billion dollars. Cryptoeconomics is already an objective reality. It all started with the emergence of one cryptocurrency – Bitcoin – and has grown into a huge industry.

The crypto market is interesting because it does not develop in the traditional financial system, but in parallel with it. This allows cryptoinvestors to make money even when the entire global economy is in decline. It is only important to understand the current trends and popular cryptocurrencies correctly.

Current trends in the cryptocurrency market

The cryptocurrency market has always developed rapidly. Over the past few years, many new projects have launched and old ideas that have proven to be viable have taken hold. Let’s take a look at the main cryptocurrency market trends that will dominate in the near future.

Emergence of new platforms

Active development of the industry entails the emergence of more and more new platforms to work with and make money from cryptocurrencies. Of the new projects, our attention was attracted by the Bitcoin Investments exchange, which was opened on October 1, 2020. This platform can rightly be called the cryptocurrency exchange of the future. It was designed specifically for high-performance exchange trading.

Unlike other platforms, Bitcoin Investments works on a system of trust management. Using the service, investors can entrust their assets to a team of professional traders who not only manage to invest each dollar profitably, but also competently develop a system of risk diversification.

DeFi

Last year can definitely be called the year of DeFi. Just as the ICO fever gripped the industry in 2017, decentralized finance “took over” the market in 2020.

In 2021, the DeFi market continues to grow. The concept of decentralized finance is broad and covers various aspects – credit, monetary banking, and decentralized markets. Right now, according to DeFi Pulse, more than $43 billion is locked up in decentralized finance smart contracts.

Stablocoins

Since 2020, there has been increasing use of steiblockcoins – cryptocurrencies whose value is backed by the dollar or other traditional assets. Over the past year, the use of such coins increased by more than 500%. Industry experts continue to predict growth in this area of the industry and even call steiblockcoins “the most commonly used payment system in the world.

A Step Toward Settlement

2021 is likely to be the year that cryptocurrencies receive tax regulation. The changes are indicated by the massive implementation of identity verification procedures, the development of a protocol with the ability to track transactions, and the gradual adoption of legislation on cryptocurrencies in various countries.

This trend is understandable. The capitalization of the digital asset market continues to grow, and central banks and governments are paying more and more attention to this area of the economy. The crypto market is maturing and the government sees potential (and even a threat) in it.

On the one hand, the emergence of legislation regulating cryptocurrencies could give entrepreneurs and investors some clarity. On the other hand, it could lead to government restrictions.

Anonymous Cryptocurrencies

Anonymous cryptocurrencies and their users resist regulation. Not everyone likes the trend of government control over cryptocurrencies. Therefore, anonymous cryptocurrencies are actively developing in parallel.

Tax regulation of the digital economy will also make it attractive to open projects in jurisprudence that oppose it. In other words, we can expect the emergence of a kind of crypto-offshore zones. And, most likely, such zones will be countries with well-developed IT technologies. For example, Japan, Korea, Singapore, Switzerland.

NTF or tokenization of everything

In DeFi’s implemented protocols, we have already seen the tokenization of traditional assets: such as national currencies or precious metals. The new NTF technology, on the other hand, makes it possible to tokenize literally any asset, be it a property right, an art object, or a game item.

Non-fungible tokens have become one of the major trends of this year. And, since virtually all areas of human activity lend themselves to NTF digitization, this area of the crypto-economy is only expected to grow in the future.

Risk assessment models will improve

Amid the surge in value of all major cryptocurrencies and their popularity, the need for competent risk and market assessment has also become more urgent.

According to CoinMarketCap, there are more than 8 thousand different cryptocurrencies at the moment, and about 90% of them are fraudulent. This situation entails the development of new analytical tools that allow even novice investors to understand the intricacies of financing in cryptocurrencies.

Transaction costs are changing

Blockchain transaction costs are expected to decrease in 2021 due to protocol updates. In contrast, VTC network fees are predicted to rise.

Such divergent changes in the transaction costs of different networks could lead to a change in the main players in the industry. Today, digital transactions in VTS and other popular currencies are mostly attracted by fees, which are several times lower than in fiat transactions. But if this trend of popular coins cannot be maintained, e-commerce services are likely to switch to their cheaper alternatives.

Oracle networks will grow

There is no doubt that the growth of the crypto-economy of the last few years is due to the emergence of Oracle systems. Protocols such as Band Protocol, Chainlink or DIA have expanded the capabilities of smart contracts and made their use possible in any field.

With Oracle, smart contracts were able to import data from the real world. It is thanks to them that the development of decentralized finance, the creation of tokenized assets, the interoperability of different blockchains and much more have become possible. Since these are the main current trends of the cryptocurrency market, Oracle systems are also predicted to grow in the future.

Cryptocurrency Predictions

We will see Etherium in the headlines repeatedly this year. And the reason for this is not only that its blockchain has become the basis for the development of NTF tokens, DeFi protocols and many other projects. Eth2 is also being developed now, and of course the community will be breathing unevenly, watching how the platform develops.

The next year is likely to remain a difficult one for Ripple. The company is still reeling from a major lawsuit brought against it by the U.S. Securities and Exchange Commission. The case involves the sale of XRP, which the SEC believes took place illegally.

Amid the scandal, XRP tokens have been delisted from several major exchanges, but the company has pledged not to give up and is determined to stay strong. But SEC lawsuits tend to be protracted, so 2021 is likely to be an uphill battle for Ripple.

Cryptocurrency forecasts are always hard to make, as the market situation can drastically change vector at any moment for a variety of reasons. But the main cryptocurrency of the market so far shows only steady movement forward, and the value of Bitcoin, as we know, is usually followed by the whole market.

The reason for Bitcoin’s recent surge was another halving, which reminded society that the number of coins is limited. This gave rise to a new fever in the pursuit of VTC, the value of which has increased several times in the face of scarcity.

Experts predict further growth of Bitcoin as well. Especially given the growing number of institutional investors willing to invest in “digital gold.

For those who have already managed to make good money during this or the previous bull market, the allocation of capital for trust management will be perfect. The Bitcoin Investments platform provides such an opportunity for investors, where you can put your assets under the management of an experienced cryptotrader. This will make the money work, and you will profit from it without the risk of losing all your funds.

Conclusion

Today we have the opportunity to watch definitely exciting times for the crypto industry. 2021 could be a crazy year of new discoveries and innovations. It’s likely that some of the high-profile trends that will dominate this year haven’t even emerged yet. As was the case with DeFi, which we didn’t even hear about until January 2020. However, some rough outlines of future trends can already be seen today.

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