The year 2020 was a fantastic year for cryptocurrency. It’s because the pandemic outbreak has speeded up the online transformation says Brian Colombana. The year 2021 had witnessed some prominent achievements and breakthroughs in the trends in cryptocurrency that’s shaping the finance future. Now that we have stepped onto 2021, we can witness some new developments in the crypto domain coming up every day. More people will say yes to crypto in the forthcoming six months, and the best cryptocurrency trends will rule the crypto domain.
Are you a crypto enthusiast? If yes, you should know the best trends for improved investment decisions. Brian Colombana has shared some of the popular trends for crypto.
DeFi
DeFi or decentralized financial services projects are going to be a big trend in the crypto world. These projects have developed a solid foundation in the financial domain recently. That aside, the experts believe that the DeFi will act as a key driver for the fast adoption of the online storage of tokenization or assets. And as Ethereum grows, DeFi will also flourish.
The expansion of Stablecoins
Back in 2020, the stablecoins volume that were in circulation went up by 500%. The dollar-pegged stablecoins are going to witness more prominence with USDC and Tether as the market leaders. The Stablecoins are the crypto coins that are trending. With the benefits of the Stablecoins, increased number of investors invest to secure themselves from any unusual volatility in the crypto market.
The advent of the tax regulations
The bubble is certainly expanding bigger with the higher adoption of crypto coins from various countries globally. Till date, the cryto taxation is vague. However, this year one might witness the standard crypto regulations which will administer certain crypt transactions and activities. And this crypto market trend will be effective soon.
Central Bank Digital Currencies
The experts are of the opinion that with the rise of regulations, the central banks will be a part of the trend with the advent of the Central Bank Digital Currencies (CBDCs). It can also assume the tool of future finance and payments. You have certainly heard of China coming up with a digital currency, which is the digital Yuan. Hence, Brian Colombana says that other countries like Europe and USA are trying to develop tokenized money.
Cryto tax
It would help if you got prepared to pay crypto tax as several countries are attempting to execute it. The governments of various countries are developing tools for monitoring cryptocurrency transactions. Hence, now we might witness crypto exchanges reporting on the consumers’ gains to the tax authorities.
5G will become mainstream
Currently, the 5G will get highly used for deciding on the mining operations, the DeFi applications, and to bring about new services to the domain. The network problem for the traders will get solved because 5G will provide increased-speed connectivity, reducing the requirement of placing the service near to the crypto exchanges.
Last but not least, cryptos will become public. The expanding cryptocurrencies can test the waters for the IPOs. And with the crypto exchanges becoming popular, that would become public as well. It might make the crypto a fine-established domain with prominent players outlining the scope.