Cryptocurrency is a digitized asset or simply virtual cash which is used as a tool of transactions and exchange, based on a strong cryptographic system for securing monetary transactions, substantiating transfer of assets, and controlling the creation of additional units.
The various forms in which cryptocurrencies exist are bitcoin cash, bitcoin, ripple, Ethereum, dashcoin, Litecoin, and several others.
Among all the cryptocurrencies, Bitcoin is tagged as BTC and roughly corresponds to the use of a Debit Card excluding the feature of displaying numbers on the screen are also in contrast to fiat currencies.
Overview of the cryptocurrency market
The overview of the cryptocurrency market is not limited to market review only, but also involves overview of product, analysis of the segmentation of the market, overview of the regional market, dynamics of the market, opportunities and limitations of the market, and the market policies are few of the areas concerned with the overall cryptocurrency market.
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A study conducted on the cryptocurrency market keeping the time span of 45 years in mind, that is, from the year 2015 to 2060, reported the market performance keeping 2020 as the base year.
The study was aimed at reporting the significant insights on the growth of industrial developments and opportunities.
The report stated that the global market of cryptocurrency was expected to increase at a Compound Annual Growth Rate (CAGR) of 30%, which is expected to hit by 2060, the humongous amount of $5190.62 million allowing members who join the Bitcoin program to gain exclusive access to reserved Bitcoin Millionaires.
Cryptocurrency market trends in 2021
The universe of cryptocurrency is expanding exponentially and there lies no doubt in the phenomenon. A whopping $1 trillion is now the total capitalization of the cryptocurrency market and this is no surprise.
About 100 million users of cryptocurrency are estimated to exist around the globe and the numbers are not lying.
The growth of cryptocurrency has become so rampant that even individuals who were less enthusiastic about the concept are investing in the digital currency.
The cryptocurrency market is ever-evolving and the trends influencing the change are crucial for knowledge.
The ecosystem of cryptocurrency
The primary and most effective cryptocurrency trend in the market is the complete adoption of the currency by several institutions.
Traditionally, huge corporations and financial institutions were skeptical of cryptocurrency’s ecosystem although in recent news, several people are investing their capital in this field.
By 2020, an estimated amount of $15 billion was allocated to the asset class of the cryptocurrency market, derived from institutional assets that were managed.
This number was way higher than the $2 billion allocated by the end of 2019.
Tokenization of everything
In the sphere of cryptocurrency market, the most intriguing development was the introduction of Non-Fungible Tokens or NFTs.
These specific tokens are considered the digital representation of the claim or assets of an individual. The represented item can either be physical or digital for transaction through tokens although NFTs such as Bitcoin are not required to mandatorily represent any assets, claim or physical thing.
NFTs are typically generated on a Blockchain network, such as the Ethereum Blockchain, and relational contracts are embedded in them, describing the physical or digital asset that the user wants to represent.
Since the cryptocurrency market is of fragmented nature, it becomes tough to acquire the overall size of the market although several NFT platforms allow viewing such information too.
The upcoming trends in NFT markets have generated sales of over $30 million in the month of January, 2021 and its growth is rapidly increasing.
Expansion of DApps
DApps or Decentralized Applications are software systems that perform on a distributed network (peer-to-peer basis).
The potentiality of these applications are huge in the cryptocurrency marketplace. The DApps radar estimated that the volume of transactions increased from $21 billion to $271 billion, in between 2019 and 2020.
The radar also found that about 45% of the DApp transactions were performed on the Blockchain, Ethereum.
All in all, these sorts of trends enable multiple transactions in a second and also helps to exclude the transaction charges.
Apart from these trends, the central financial institutions are also trying to be ahead of the curve by inventing and establishing their own digital currencies.