It is safe to say that 2020 was a hugely prosperous year for the entire cryptocurrency industry. Regardless of the several economic, financial and political troubles over the past year, the blockchain space has made substantial progress. 2020 saw the inauguration of the highly anticipated Ethereum 2.0, the outbreak of decentralized finance (DeFi) and a new all-time high price was set by bitcoin exceeding its 2017 record.
What awaits cryptocurrencies, decentralized finance and the blockchain industry in 2021? How will these sectors develop in the next 12 months and what should we look forward to in the foreseeable future? In this article we will look at all those aspects of the bitcoin supreme website.
Major investment giants, Blockchain Capital released a report recently detailing the 10 things likely to happen to digital assets in the coming year. In the report, the investment firm talks about Coinbase, governance tokens and lending, the stablecoins market, central bank digital currencies (CBDC) and many other related topics.
After evaluating a number of prediction reports by various reputable institutions, we came up with the following predictions for 2021. The key areas included in this article are blockchain technology, bitcoin and the resurgent decentralized finance sector.
According to research conducted by Forrester market research firm, blockchain and distributed ledger technology (DLT) have gained huge traction in the business communities over the last 12 months. The chief analyst at Forrester, Martha Bennet, said that the predictions are based on changes rather than continuation of trends.
As per the report, 30 percent of blockchain projects across the world will be launched within the next year. The firm opines that the development of new initiatives, which include blockchain projects, is linked to alterations in the market and the economic situation. On top of that, it is also influenced by the coronavirus pandemic.
The firm made three key predictions for the blockchain sector:
- 30 percent of projects in the world will implement blockchain technology in 2021
- China will be the leading country in implementing blockchain solutions in its new digital framework.
- Permissioned blockchain platforms will still remain dominant in future.
Bitcoin and altcoins market
The crypto market has seen big growth over 2020 regardless of all the challenges and crises. With a degrading economic condition triggered by the COVID-19 pandemic, the demand for digital assets skyrocketed. Big corporations, individual investors and even humanitarian foundations have expressed great interest in cryptocurrencies.
The growing interest in bitcoin has resulted in the leading cryptocurrency setting another record price in December and still appreciating. The current market value of bitcoin is $26,850.75 after peaking at an all-time high price of $28,378.
Other cryptocurrencies have also experienced significant growth in 2020. Most the price of bitcoin will reach $100,000 before the year ends. As per predictions the $40,000 price level appears to be more realistic.
DeFi has been an industry marvel in 2020. The total market capitalization of the sector has significantly grown multiple times over the course of the year. The ideologies and technology behind decentralized finance have been adopted by leading financial market players. Nevertheless, the DeFi sector is still in its infancy and will require a lot of development and funding to move to the next level.
According to the report by Forrester, decentralized finance will have adverse consequences on the development of enterprise blockchain networks. The blooming of the DeFi ecosystem in 2020 has birthed shady activities on public blockchains such as the Ethereum network. As a result, some firms are growing uncertain about the impact of blockchain technology in the financial sector.
Major firms like Amazon, IBM, Citigroup, CVS Health, Facebook, Google, JPMorgan Chase and many others are currently using blockchain technology. However, now it is DeFi’s time with the blossoming sector attracting interest from large corporations. A major public company, xSigma recently announced its plan to its first decentralized finance product. In 2021, the firm aims to launch a decentralized exchange (DEX).