The total output value of NFT exceeds 100 million US dollars! How will the crypto market develop in 2021?
Non-homogeneous tokens (NFT) last summer, the transaction volume surged 57%, and the total output value exceeded 100 million US dollars.
The payment and cryptocurrency management platform Crypto.com re-examined the highlights of cryptocurrency in 2020 in its annual market review. The report also made several predictions for cryptocurrency trends in 2021. This article will briefly review the predictions made by Crypto.com.
According to Crypto.com’s annual report, the crypto market is still in its infancy. Currently, there are only about 73 million encrypted users in the world, accounting for only 1% of the global population. Also, even if the crypto market has developed rapidly, reaching a capital scale of US$1 trillion in the past year, the size of the crypto market is still minimal compared with traditional finance.
You know, the total assets of pension funds in only 37 OECD countries amount to US$32 trillion, and the total market value of cryptocurrencies is dwarfed. Also, it is worth noting that more and more regulatory agencies may put forward operating license requirements for encryption companies.
There is a mainstream view that the Democratic governor will have stricter regulations on digital currencies than the Republican government, but some people have also asserted that Biden’s coming to power is good news for cryptocurrencies.
Bitcoin enthusiasts tend to ignore the anonymity of Bitcoin and its potential use in fraud, but these are very serious problems for regulators. In 2021, there may be more stringent regulatory measures for cryptocurrencies.
In March last year, the price of Bitcoin fell below $4,000, and both buyers and sellers were struggling with profits and losses. By December, the transaction price of Bitcoin, the world’s most valuable virtual currency, exceeded $28,000. On January 7 this year, Bitcoin even exceeded $40,000. The ups and downs of the market made people feel like a world away.
The value of Bitcoin is not directly related to financial or monetary policies in the real world, so it is difficult to predict or even explain its appreciation or depreciation, which also leads to extremely volatile prices of Bitcoin.
In 2020, we will see an amazing development in the adaptability of Bitcoin. The well-known financial technology company PayPal allows its users to buy and sell bitcoins, and MassMutual Life Insurance Company bought $100 million in bitcoins. These examples all show that Bitcoin is increasingly recognized by the mainstream. This trend may continue in 2021.
It is worth noting that Crypto.com also conducted a detailed study of Ethereum. The company’s report predicts that decentralized finance (DeFi) will continue to maintain rapid development in 2021. Some DeFi projects that are easy to invest, such as aggregators (aggregation platforms that support multiple DeFi protocols) and decentralized asset management companies, will gain a certain degree of popularity.
Crypto.com also emphasized the fact that Ethereum “needs an upgrade and expansion”. Solutions such as Plasma, sidechains, ZK-Rollups, and Optimistic Rollups are already in progress. Despite this, the company predicts that some applications will still be migrated to other blockchains to improve operating efficiency.