Top crypto trends to look out for in 2021

Published in

Coinmonks

4 min readMar 1, 2021

Blockchain as a technology has been evolving rapidly. At every moment we see new innovations coming up. If any such innovation show traits of sustainability, they start creating confidence and excitement among the community. The community, after finding the value, creates a trend that drives the ecosystem forward.

One and a half months have already passed in 2021. We have left behind the dark of 2020 and slowly getting back to business. The development work which happened during the bull market from 2018 to 2020 is now getting implemented. AMMs and thus De-Fi was the most powerful innovation which happened in 2020.

As the Defi wave calms down and the teams again get back to development-mode, we take a look at some of the trends which will rule blockchain in 2021

1. Interoperability as a norm:

De-Fi in ETH only is history. Every other De-Fi platform is currently focused on collaborations and interoperability. This interoperability is particularly seen between Ethereum and Polkadot ecosystems. Projects like Bondly, Acala, etc are building their solutions based on cross-chain dynamics. Other areas like Gaming, Supply chain are becoming cross-chain. Origin Chain is a prime example. Singularity Net plans to move cross-chain between Cardano and Ethereum. The future is cross-chain. Cross Chain is freedom.

2. ETH Competitors get traction

I have talked about this before but would like to summarize this as a trend. ETH Scaling will need a minimum of 2 years. The movement to L2 is still complicated. There is also a lot of ego in the ETH Ecosystem. I see newer blockchain stepping up and start contributing to the Dapp ecosystem. Some notable projects include Polkadot, Cardano, Elrond, Cosmos, Eos, and Algorand.

3. Movement to ETH Layer 2 continues

Matic Network has just become exemplary. From a tech perspective xDAi, Loopring can compete, however, the sheer amount of projects they are ramping up is phenomenal. They have the right focus and leadership. Their recent rebranding to Polygon and modification of vision statement shows their flexibility and capability to adapt to a changing environment. xDai is also onboarding new projects. We will see more of these in the future.

4. NFTs become a huge deal

It started with CryptoPunks and Axie Infinity. Axie as a project had seen a phenomenal rise in 2020. CryptoPunks has simply exploded, with all the big players being punk holders. Then came Hashmasks, the auction through bonding curve was a huge hit. We have newer projects like Ether Cards rising. Enjin has almost completed developing their zero-fee network, Efinity, and should come into the limelight pretty soon. 2021 will be the year of the NFTs.

5. Rise of decentralized Fund Raising

Decentralized Fundraising is the new kid in the block. In the ICO era, the projects used to themselves raise funds by using smart contracts. Most of these investments turned out to be disastrous. We have previously seen centralized projects like Binance Launchpad raise funds and doing pretty well. However, in all of these, the community has a little say and the BNB Holders got allocations. We also saw the introduction of Mesa as a funding platform that uses Bonding Curve. New projects like Trust Swap, PolkaStarter, DaoMaker are taking over. Keep an eye on them, they will become pretty big soon.

6. More big companies purchasing Bitcoin

There have been rumors of Uber purchasing Bitcoin. Banks like Morgan Stanley are contemplating the purchase of Bitcoin. Microstrategy is accumulating Bitcoin continuously. Elon Musk has openly showered his love for Bitcoin. This corporate love for crypto has slowly moved to altcoins like Dogecoin and Ethereum. In the coming months, we will see many new big corporations joining the crypto ecosystem. Governments are already working on blockchain projects in the back end. We might also see some of these governments upgrading to the blockchain. We have to understand that we have only a few organizations that have signed up till now. Once they start coming in masses, there is no holding back.

Read the Previous article: How to play Dark Forest, the zkSNARK powered MMO Game — Part 2

Note: This post was first published here for Cryptowriter in association with voice.com.

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