In any case, 2020 will be a chaotic and unpredictable year. However, despite the many uncertainties in the cryptocurrency market, 2020 will still attract global attention with record token prices and unprecedented industrial news.

Entering 2021, blockchain technology and cryptocurrency have brought great profits to institutions and stimulated the rapid development of the industry.

The future is good for investors. Investment experts hope to carry out a large-scale revolution in the field of cryptocurrency. We have summarized the things worth paying attention to in 2021 and hope to attract everyone’s attention.

What is the madness of CBDC?

In 2020, some national central banks are considering the introduction of digital currencies, and well-known central bank experts from around the world are currently evaluating the pros and cons of using digital currencies as alternative legal currencies.

These central bank experts come from Germany, Japan, Canada, and the United Kingdom, and work with the Bank for International Settlements (BIS) to ensure global financial representation.

The Central Bank Group is adopting a comprehensive method to evaluate the impact of the central bank’s digital currency , including the cross-border acceptance of the central bank’s digital currency, the economic impact of the transaction country, and related general functional and technical issues .

China has already issued its digital renminbi to four major cities, and more countries are following suit.

2021年仍然值得关注的几个加密货币行业趋势

Fintech solutions based on blockchain

When the epidemic breaks out, the demand for contactless financial transactions will increase significantly, and most companies are looking for financial technology solutions for their business processes.

A perfect solution for contactless transactions is to adopt blockchain technology and incorporate it into the financial system.

Using blockchain-based solutions, fintech companies facilitate the easier retrieval, issuance and verification of digital certificates, thereby facilitating the process of contactless transactions .

Bitcoin’s upward trend

By the end of 2020, the market value of Bitcoin has surpassed the $500 billion mark, surpassing large companies such as PayPal, MasterCard, and even Visa.

Since the beginning of 2021, the upward trend of BTC has continued, reaching a high of $61,000 and staying above $50,000. Of course, acquisitions by institutional investors and hedge funds may have contributed to this performance.

2021年仍然值得关注的几个加密货币行业趋势

In addition, well-known companies such as Square and PayPal have also adopted Bitcoin as a trading option, which has strengthened the confidence of retail traders. When large companies invest in digital assets, enhancing the attractiveness of digital assets ultimately increases further global investment .

The popularity of DeFi

Using blockchain technology to eliminate intermediaries when processing financial instruments or executing financial transactions, DeFi uses blockchain-based smart contracts to promote peer-to-peer interaction between borrowers, lenders, and buyers and sellers.

Due to the existence of DeFi, it simplifies the process of obtaining financial instruments through intermediaries such as banks, brokerage firms, and exchanges .

By the beginning of 2020, the value of assets locked in DeFi was US$683 million, but by the end of the year, its value had increased to US$14 billion, a growth rate of over 2000%.

Even with some criticisms, well-known investors like Elon Musk have played a vital role in popularizing DeFi.

The future of Ethereum

Ethereum is a cryptocurrency that is expected to benefit the most from the popularization of smart contracts. DeFi is based on Ethereum, which means that with the popularity of DeFi, Ethereum has become more popular.

For several reasons, investors should focus on Ethereum, including the enhanced features in Ethereum 2.0.

Through system upgrades, transactions will be processed faster and more securely, surpassing all other blockchain ecosystems. With such an improvement, it will definitely attract users.

2021年仍然值得关注的几个加密货币行业趋势

The start of Ethereum this year has shown an upward trend, and the price has reached an all-time high of $2,000. The soaring price and the above advantages make it a trend worthy of attention.

Most cryptocurrency investors are fascinated by Bitcoin and its performance and ignore other cryptocurrencies.

However, there are many profitable opportunities in the cryptocurrency field, and the timely trend has begun to take shape . Investors should be more vigilant.