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Crypto-monnaies trends to look at during the coming year
The world of cryptocurrency has been on a roller coaster and low mountain tour in the last decade, the prices fluctuating wildly depending on the feeling of the market and technological progress. While we are entering a new year, experts predict important trends that will shape the future of this space. In this article, we will take a closer look at some of the trends in the most exciting cryptocurrencies to look at during the coming year.
1. Increased adoption by institutional investors
While institutional investors such as hedge funds and pension funds become more comfortable with cryptocurrencies, their investment portfolios turn to digital assets. This increased adoption should increase the demand for cryptocurrencies, resulting in high prices and an increase in market capitalization.
In accordance with a Deloitte report, the total value of the cryptocurrency held by institutional investors reached $ 143 billion in 2020, against only $ 20 billion in 2017. While more and more institutional investors enter into space, climbing contributions and liquidity and market activity.
2. increasing adoption in traditional companies
Cryptocurrencies are no longer only for enthusiasts; Consumer -public companies are starting to adopt them as a means of increasing efficiency and reducing costs. Companies like Microsoft, IBM and Amazon have already incorporated cryptocurrencies into their payment systems or use an alternative to traditional currencies.
The growing acceptance of cryptocurrencies among traditional companies will lead to significant growth in adoption rates, which allows individuals to participate more easily in space. As more and more companies follow the step, we can expect to see increased interest in consumers in these types of transactions.
3. Increased accent on decentralized finance (DEFI)
Decentralized finance (DEFI) is a rapidly growing segment on the cryptocurrency markets. DEFI platforms allow users to lend and borrow cryptocurrencies without the need for intermediaries, reduction in transaction costs and increased liquidity.
In accordance with a Chainalysis report, DEFI transactions increased by 400% in the fourth quarter of 2020 compared to the same period last year. This growth is expected to continue the new year, with more DEFI platforms launched and existing those expanding their offers.
4. Towards the digital currencies of the central bank (CBDC)
Digital currencies of the Central Bank (CBDC) gain ground while governments around the world are starting to explore their potential advantages. CBDCs could solve the way we think of money, providing a digital alternative to traditional fiduciary currencies and potentially reducing transaction costs.
The European Central Bank has already launched its own CBDC called E-CUR / EN, which is currently in beta. Similar projects are underway in other countries like Japan, China and South Korea, clearly indicating that CBDCs become an increasingly popular solution for governments that seek to reduce their dependence on traditional currencies.
5. Increased regulation
While cryptocurrencies earn more general public acceptance, regulators around the world are starting to take note. Governments repress unregulated exchanges and institutional investors require stricter regulations.
The American Committee Futures Trading Commission (CFTC) has published a statement calling for increased transparency in cryptocurrency transactions, while the European Union values authority is launching a new regulation referred to investors.
6. Increased accent on safety
The threats of cybersecurity in the space of cryptocurrencies are becoming increasingly important, hackers targeting exchanges, wallets and individual users.