The Top 7 Crypto Trends to Watch Out for in 2021
The hype surrounding cryptos is undeniable. 2020 was filled with announcements of the world’s leading financial institutions pouring millions into the technology. This excitement has brought about a renewed interest in these digital assets, and it’s safe to assume that this upward momentum will continue in 2021. Here are the top seven crypto trends to watch out for in the coming year.
1. Privacy Coins
With the increase in scrutiny from governments worldwide, privacy-focused coins such as Monero and Zcash can expect heightened demand. The goal of these coins is to provide anonymity in transactions, making them perfect for those who value their privacy when using digital assets.
2. NFTs
Non-Fungible tokens (NFTs) have been growing with each passing year, and 2021 is no exception. These tokens are unique, distinctive, and can be used to represent artwork, virtual spaces, and other collectibles.
3. Central Bank Digital Currencies (CBDCs)
CBDCs have been discussed for a while now, but only a few countries have launched their digital currencies. Expect this to change in 2021. China has already started testing its digital yuan, while other nations like France and Germany have announced their intentions to digitize their currencies.
4. Stablecoins
The volatile nature of cryptocurrencies is well-known. Stablecoins aim to provide a solution to this by pegging their value to an asset. The most common stablecoins are pegged to the US dollar, but other assets such as gold and oil can also be used.
5. Decentralized Finance (DeFi)
DeFi has exploded in the last year. This technology utilizes blockchain networks to power a wide range of financial applications, including decentralized exchanges, lending and borrowing platforms, and insurance protocols.
6. Ethereum’s Upgrade
Ethereum, the world’s second-largest blockchain, is undergoing a significant upgrade in 2021. Ethereum 2.0 hopes to address concerns around scalability and improve the overall performance of the network.
7. Institutional Investors
Institutional investors, such as hedge funds, have started dipping their toes into cryptocurrencies. This trend is expected to continue in 2021 as more established investors seek exposure to the digital assets’ potential gains.
Conclusion
2021 holds many promises for the cryptospace. Everything from CBDCs to new updates to Ethereum is on the horizon. These emerging trends represent significant opportunities for investors and developers alike. Stay ahead of the curve by watching out for what’s to come.
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