The year 2020 making its first aghast impression with the introduction of Coronavirus has brought huge misfortunes to the global economy. The entire global economy got highly susceptible to even sustain with the basics.
When the majority of the economical sectors were struggling, there was one that did stunning. Guess what? Yes, in arguably the CRYPTO ecosystem where the best footing towards better economic routing could be witnessed.
The continuous introduction and integration of varied cryptocurrencies in the market for real-world applications aim to fetch a sustaining position in the world economy.
Crypto Market Scenarios
The cryptocurrencies were observed gaining momentum since the beginning of the year with Bitcoin, Ethereum, and XRP outperforming other asset classes with 165%, 342%, and 156% respectively against the US dollar.
Additionally, the wide range of Altcoins have managed to showcase them well this year with AAVE, BAND, YFI, and RSR chalking up gains ranging from 1000% to 4600%.
The potential of Decentralized Finance (Defi) has also been utilized to a greater extent this year.
As per the report of Defi Plus, in comparison to the year 2019, the aggregate value of digital assets being locked up in Defi protocol this year has been tremendously huge with $650 million in 2019 and $ 14.7 billion in 2020.
Undoubtedly, the majority of best-performing cryptocurrencies, banks, insurance providers, exchanges are observed adopting the Defi niches.
Surprisingly, the Blockchain-based projects have been the cynosure for all eyes with their great deal of involvement in the Altcoins space.
The transition of Ethereum to Ethereum 2.0 platform, layering of Polka dot (DOT) towards the foundation of para chain slot auctions, and with Tron releasing its several Defi projects blockchain have managed to steal the crypto show.
Mass Adoption of Crypto
PayPal, being the World’s largest digital payment structure has shown strong greens signals towards offering ease of payment through cryptos. Y
es, it has released crypto wallets and online shopping features, additionally with vast investment in Bitcoin. This one simple execution will certainly double the number of investors by the upcoming year.
As per the Study of the University of Cambridge, this increase can be estimated to be around 100 million.
According to the recent interview with the CEO of Fold, it is highly expected that Fold which is a cryptocurrency start-up aims to partner with the payment giant, Visa.
This collaboration is said to offer card users rewards not in the form of cash but cryptocurrency. Isn’t that a hopeful mark for crypto enthusiasts?
In fact, such credit cards can be brought to use for major outlets like Uber, Amazon, Starbucks, and Airbnb too.
Similarly, the CEO of J.P. Morgan in his flagship research compared bitcoin to gold stating that owing to its wider adoption; the crypto prices would double or triple in the years to come.
He also aims to drive crypto energies towards the bullish crypto market through certain collaboration with banking services.
The remarkable amount of Institutional participation in crypto measured through pension funds, endowments, family offices, and hedge funds seems to hold a significant position in Bitcoin futures which upscaled to 20% this year just in a month.
Square, being another payment platform headed by Jack Dorsey has been observed to invest 1% of their total assets in Bitcoin which amounted to $50 million for about 4,709 Bitcoin in 2020.
Velas (VLX), a platform working on artificial intuition aims to launch a blockchain-powered social content named Bit Orbit supporting the multi-asset wallet and solidity-based Micro apps.
The secure chat solution and IPFS powered storage of Bit Orbit are potent to be a change-maker for the cryptocurrency industry.
Scope of Cryptos
The accelerated cycle of crypto adoption is a result of an avalanche of development and innovations which aims to make Cryptos move out from the Shadows to the mainstream.
The sudden dramatic shifts in consumer sentiments have paved the way for financial institutions to shed their potential in the crypto market.
With the introduction of several blockchain-based and Defi projects, the kick start towards a bullish market was observed which is expected to stabilize the global crypto ecosystem in the long run.