[출처: 크립토닷컴]
Crypto.com, a virtual asset payment platform, released a research that looks back on the virtual asset market in 2020 and predicts points in 2021. Crypto.com should be noted in 2021: Public acceptance of virtual assets, growth of institutional virtual asset brokerage and asset managers, continuous growth of DeFi, development of NFTs, expansion of smart contract chains, growth of the global regulatory system, and virtual asset options Cited the explosive increase in
#2020Year is a year decorated by bitcoin with institutional entry
Crypto.com mentioned bitcoin as a key keyword in the virtual asset market in 2020 prior to the 2021 forecast. Bitcoin fell 50% on Black Thursday in March last year due to the liquidity crisis caused by Corona 19 this year, hitting an extreme low, but soon showed a strong recovery and led the parabolic rally. Along with this, the market continued to be bullish with high trading volumes and volatility. Also, in May, the BTC inflation rate halved and suffered a third half-life. As a result, supply declined, and it also contributed to the price increase.
Above all, in 2020, the issue of institutional entry into Bitcoin created a strong bull market. In August, news came out that MicroStrategy had composed a $250 million cash reserve in bitcoin, and Square had previously launched a bitcoin-related service. 2020 was a year in which institutions’ perception of virtual assets changed, with large institutions such as Goldman Sachs, which previously did not recognize Bitcoin, also appoint a new digital asset manager. In addition, Fidelity, one of the world’s largest asset managers, launched a Bitcoin fund for wealthy investors, recommending a 5% portfolio allocation to Bitcoin. In addition, it is not an exaggeration to say that 2020 was the year that the institution decorated bitcoin, such as Citibank’s prediction that bitcoin will exceed $300,000 by the end of 2021 and news of the establishment of its own digital asset exchange by the Bank of Singapore DBS .
#DeFi, stablecoin, Ethereum 2.0, regulatory risks were also important issues in the year
Crypto.com chose DeFi (decentralized finance) craze as the first for 2020 issues other than Bitcoin. In response, Crypto.com said, “We can’t talk about 2020 without talking about DeFi. New protocols and interest farming initiatives are announced almost every week, bringing TVL (total locked) from under $700 million to $15 billion.23 I’ve grown more than doubled.”
The explosion in the supply of stablecoins is also one of the main reasons behind the market’s strength. In particular, there is a phenomenon that the dependence rate on Tether, a centralized stablecoin, is increasing. Tether has a market share of 3/4 of the USD-based token market. However, Crypto.com also expressed concern, saying, “The regulatory risks of Tether and Bitfinex are factors that can negatively affect the market.” Along with this, Crypto.com mentioned CBDC (Central Bank Digital Currency), a state-led stablecoin. In particular, the possibility of CBDC growth was predicted by taking the case of China, which issued the digital yuan.
Ethereum 2.0 and regulatory risk were also one of the issues representing last year. Crypto.com said, “Currently, there are more than 2 million validator nodes in the Ethereum 2.0 staking contract, and the value is over $1.6 billion as of January 2021 and collects more than 14% annually as a nominal return.” said. In addition, for regulatory risks, taking the BitMEX prosecution as an example, “Regulators are focusing on shaking up the virtual asset industry. However, unlike other years, last year showed a rapid recovery of the virtual asset market despite regulatory risks.”
#2021What is the point of watching the year?
Meanwhile, Crypto.com also forecasts key points in the virtual asset market in 2021. First, it was revealed that the popular acceptance of virtual assets would be a hot topic. In this regard, Crypto.com said, “According to the OECD, 37 OECD countries have $32 trillion in pension funds. If only 5% of these assets were allocated to bitcoin, an inflow of $1.6 trillion, or more than three times the market capitalization of virtual assets, would be inflow. “There are more paths to go before reaching this point, but the important thing is that all this growth is just the beginning.”
Second, they cited the growth of institutional virtual asset brokerage/trusted businesses and asset managers as keywords. Crypto.com explained that the assets held by major brokers, trustees and asset managers by institutions such as PayPal and banks are expected to increase explosively.
Third, he said that we should keep an eye on DeFi’s continued growth following last year. In a zero-yield economic environment, investors’ assets have nowhere to go, and even considering the increased risk posed by investors, the DeFi return remains attractive.
Fourth, the possibility of development of NFT (Non-fungible Token) was predicted. In response, Crypto.com said, “NFT, especially digital collectibles and art, will continue to show an upward trend in 2021 as creators participate and new platforms emerge.”
Fifth, the issue of chain scalability of smart contracts was discussed. It takes time before Ethereum 2.0 is fully settled, so it seems that it is necessary to establish a technology such as a layer 2 extension solution. Along with this, he also talked about the possibility of migration to an alternative chain with its own ecosystem, such as Polkadot, which has recently attracted attention.
Sixth, it predicted that the growth of the global regulatory system will occur. Crypto.com predicts that in 2021, regulators will require service providers to acquire operating licenses. This means increased costs related to compliance (compliance), and Crypto.com believes that the asset manager who best adapts to this new operating environment will be rewarded.
Lastly, the explosive increase in virtual asset options was cited. When the institutional adoption of virtual assets is made, the related derivatives will show tremendous growth. In particular, it is forecasted that virtual asset options will increase explosively in 2021.
※ This content was produced with the support of Crypto.com.