During its relatively short lifespan, the cryptocurrency market has seen many drastic ups and downs already. It is a fairly volatile industry that is constantly evolving and changing. That being said, 2021 has been a particularly eventful year for crypto.
For example, Bitcoin hit a new all-time high when it crossed $ 60,000. Additionally, Ether hit $ 3,000 while Bitcoin’s market share fell below 50%. That being said, the cryptocurrency industry has seen a whole slew of other developments that could have been even bigger than these.
Additionally, the extra attention these events have garnered has drawn even more people and potential investors to the space, leading to new trends. A major trend in the crypto world right now is non-fungible tokens (NFTs). NFTs are unique digital tokens that can turn any digital media into a collectible asset.
Serial entrepreneur Elon Musk even offered to sell one of his Tweets as NFT, and he was offered over $ 1 million for it. That being said, he ultimately did not make this deal.
Increased regulation and supervision
With all the extra attention cryptocurrencies are getting, governments and institutions around the world are starting to pay more attention to it as well. Of course, this can have positive or negative effects on the market and its growth.
One example of a development that has had a negative impact is China’s crackdown on crypto mining and financial operations in June 2021. The actions of the Chinese government are said to have had such a big impact on the crypto market. that they led to an 11% drop in the price of Bitcoin. .
However, increased regulation and supervision can also lead to positive developments. One of the most recent significant has occurred in El Salvador, where Bitcoin is now accepted as legal tender. El Salvador became the first country in the world to accept Bitcoin as legal tender, making Bitcoin the official state currency along with the US dollar.
Institutional adoption of cryptocurrency
The increase in supervision and regulation has also made the crypto industry more attractive to many traditional businesses and institutional investors from all industries.
Some have even invested in cryptocurrency and blockchain. For example, AMC recently announced that it will accept Bitcoin payments by the end of 2021. In addition, many large fintech companies, like PayPal and Square, have also gotten involved and have started allowing users to buy cryptocurrencies on their platforms.
“With the increase in institutional adoption, there is a need for all crypto projects to operate at a higher level to compete and meet the demands of a growing customer base.” said Matthew Gould, CEO of Unstoppable Domains.
âWe’ve seen payment apps like PayPal, Venmo, and Cash App start offering support for major crypto assets, and I see this as a step in the right direction to make crypto ubiquitous globally. “ Gould added.
There are also companies which are not yet sure of their position. One of the most prominent examples is Tesla, which originally allowed Bitcoin payments but has since canceled the offer and continues to back and forth on its position. That being said, even though the company has stopped accepting crypto as a payment method, it still holds billions of crypto assets.
To be involved
So, given these developments, as Bitcoin hitting a new all-time high, clearer regulation, and more institutional investment, the crypto industry will most certainly continue to grow at an astonishing rate. People all over the world are starting to get involved and interest in all things crypto is higher than ever.
But how easy is it to trade and use cryptos? Even though the crypto industry may seem daunting at first, getting involved in cryptocurrencies is actually quite easy. There are many companies that provide crypto wallets, which can be used to securely store and trade cryptocurrencies.
There are even wallets like the NAGA Wallet, which not only provides a simple and secure way to store crypto and fiat currencies, but also an integrated exchange and gateway to NAGA’s social investment network. The company provides a real super app that combines several financial and social features.
With the developments that the crypto industry has already seen this year, one thing is certain: there is immense interest in the sector, and it will continue to evolve. Additionally, super apps like WeChat are slowly moving west as well, which will lead to deeper and faster adoption of crypto in everyday life.
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