Crypto.com “In 2021, Bitcoin’s public acceptance will begin”

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[Blockchain Today Reporter Jihye Han] Crypto.com, a cryptocurrency payment and financial platform, released a report on ‘2020 market analysis and 2021 forecast’ through its own research team.

Crypto.com said in a report that “2020 was the year of Bitcoin,” and “the adoption of bitcoin by large institutions such as MicroStrategy and Square has begun.”

Last year, Goldman Sachs hired a digital asset manager, and Fidelity, the world’s largest asset manager, launched a Bitcoin fund. In particular, Citibank predicts that by the end of 2021, Bitcoin will exceed $300,000. Crypto.com analyzed that there was a rapid growth of bitcoin due to the adoption of bitcoin by traditional financial institutions.

According to the report, in the wake of the decentralized finance (DeFi) craze in 2020, total value locked (TVL) assets in decentralized financial services (TVL) increased by more than 23 times from less than $700 million to $15 billion.

Crypto.com cited Yield Farming as the cause of decentralized finance. Crypto.com said, “I expect interest farming to have an impact on the virtual assets and financial environment in the next few years.”

The report said that in 2020, the proportion of stablecoin tether increased, and that the circulating supply of tether reached more than $20 billion. This is a third-quarter share of the USD-based token market.

Meanwhile, Crypto.com said, “The public acceptance of bitcoin will begin in 2021.” If 5% of the $32 trillion pension fund assets held by 37 OECD countries flow into bitcoin, the cryptocurrency market will more than triple in the future. I looked into it.

The report analyzed that decentralized financial services will continue to grow and that in an environment of zero interest rates, there are no products as attractive as decentralized financial services.

The report also revealed that solving the Ethereum scalability problem has emerged as a major challenge due to the craze for decentralized finance. Crypto.com said, “To increase the scalability of Ethereum, layer 2 expansion solutions such as sidechain and ZK rollup will receive attention.”

Crypto.com predicts that the NFT (non-replaceable token) market will also grow. Crypto.com said, “Last year, along with decentralized finance, the NFT market has also grown. As various creators participate and new platforms appear, the NFT market will continue to grow in 2021.”

Finally, the report said that as the cryptocurrency market grows, regulations in each country will also be strengthened, and that cryptocurrency handling and management companies will need related operating licenses.

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