Most experienced investors have been waiting frantically for 2021. The year of the imminent bull market is finally here, and the large influx of new investors has led to the search for new money-making opportunities. What is the next big thing in crypto? What should we avoid?
In this short post, we briefly discuss the upcoming trends that will share the industry in 2021. After reading this post you will know what you need to research in further detail. Let’s delve in.
Trend #1 – Institutions start buying Bitcoin
In 2020 we finally saw large (public) companies discover Bitcoin, and adding it to their balance sheet. The trend started in early September 2020 with MicroStrategy, after which we saw a large influx of institutions converting their balance sheets (partially) to BTC. We expect this trend to continue in 2021.
Trend #2 – Crypto options will increase in popularity
With retail buyers trying to increase their BTC position ahead of a massive bull run, we expect to see a wide range of derivatives products being used to further accommodate users’ needs. Among these financial products, we believe that Bitcoin options will have the most positive impact.
Trend #3 – DeFi continues to grow
Decentralized Financial applications continue to grow in popularity, with DEX platforms taking the lead. We expect more DeFi growth in 2021, as the ecosystem currently holds a little less than $14 billion in smart contracts. We believe that foundational cryptocurrencies of this ecosystem will benefit as well (ETH, LINK, etc.)
Trend #4 – Growth in NFT markets
Digital art will continue to grow in popularity as we see a large influx of creators joining platforms like Rarible.com, Opensea.com, and others. At the same time, bids for digital art continue to increase as well.
Trend # 5 – Multisig/Institutional custody
To accommodate institutional investments, several companies now offer security services for their funds. We expect to see more cryptocurrency wallets and custody companies creating solutions for the safety of funds for their institutional customers.
Trend #6 – Increased regulations
Finally, we can see an increase in regulatory frameworks around cryptocurrencies. This mainly relates to Stablecoins but transcends to the whole market – especially wallets that have not been whitelisted. We expect that upcoming regulation in this area could play a catalytic role in the volatility of the markets. So make sure you whitelist your crypto wallet addresses.