Following the re-birth of crypto markets in 2020, the bullish trend has continued to emerge in 2021, with digital asset markets showing no signs of slowing down. While the global pandemic shocked traditional finance, cryptocurrencies proved to investors that they are creating utility and value within the global economy like never before. We provide a brief overview of 2020, and transition into the positive developments thus far in 2021.
Retrospective Glance Of Crypto In 2020
2020 was an interesting year for everyone, considering the pandemic that hit the world. The pandemic brought commercial activities to a halt, and people had to adjust to the new normal. This environment involved companies downsizing their staff, and many implementing remote infrastructures. Unfortunately, many small businesses had to either shut down or halt operations.
As the lockdown happened in different parts of the world, more people began to live a digital intensive lifestyle. This resulted in the exploration of many different web-based tools.
Crypto gained a lot of popularity during the pandemic because people had the time to learn about it. Interestingly, there are thousands of crypto-based resources online to help people learn about digital assets. However, the pandemic came with some uncertainty, and many people were skeptical about investing in crypto. A lot of people were more focused on hoarding their disposable income and staying afloat. Despite many investors labeling Bitcoin as a “store of value,” it still has high volatility, unlike cash. This made it difficult for some newbies to enter the market.
Despite unprecedented conditions, crypto reached new horizons due to excessive money creation by the Federal Reserve, inflationary pressures, US Dollar uncertainties, retail adoption, and institutional adoption. Here were some highlights:
- Bitcoin surged past its all-time high of $20,000, now trading around $58,000
- Crypto market valuations surged past $765 billion ( now valued at $2+ trillion )
- Banks & institutional investors announced investments in crypto & trading infrastructure
Crypto Q1 2021
It is just 4 months into 2021 and digital asset markets are showing no signs of slowing down. For instance, within the first four months, the crypto industry has raised as much as $1.1 billion to fuel emerging protocols. Some of the big names receiving this venture capital include Dapper Labs, BlockFi, and Blockchain.com.
There are indications that at the end of this year, venture capital in the digital asset space will be even more lucrative than the ICO craze in 2018. Back in 2018, there was a huge interest in ICOs from different venture capital investors. The sum of $3.3 billion was deployed in 2018 before ICOs turned out to be a catastrophic failure.
Between 2018 and now, a lot has happened, and the crypto community has expanded. Crypto development has continued to improve over time, and with decentralized finance, NFTs, and other crypto-based innovations, there are more prospects.
Many companies and organizations are aligning with the crypto trend. There are a plethora of possibilities with crypto, and it is amazing how fast developments are scaling. Have you invested in cryptocurrency, or are you still skeptical about its use and operations?
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