“2020 may have been the blackest of black swans but the crypto space saw some incredible developments, innovations and growth. Despite the inevitable challenges, however, I’m extremely hopeful for the space in 2021.
We’re reaching some significant inflection points in areas from retail adoption, to nationalized digital currencies, to faster blockchain technologies and these developments will hopefully power a brighter, more accessible and even more decentralized financial future in the years to come.
- Bitcoin will continue to grow immensely in value and popularity, as the original flagship cryptocurrency.
- Governments will be exploring central bank digital currencies more seriously, and we may see a launch in 2021.
- DeFi will continue to explode in value.
- Crypto will begin to see widespread mainstream adoption.
- With widespread mainstream adoption, we’ll begin to see some more regulatory clarity, especially in retail use cases.
- 2021 will see several crypto acquisitions, unicorns and even a possible IPO.
- Private assets will slowly start to go digital.“
“Async Art centers around digital artworks that are living and constantly shifting thanks to collectors’ trait activations or alternatively via data pulled from off-chain resources.
Async Art is a programmable crypto art platform built on Ethereum where creators’ artworks are published as non-fungible tokens (NFTs). The interesting part about this is that any given Async Art piece is composed of a “Master” token and “Layer” tokens, the latter of which hold adaptable traits collectors can trigger to alter a Master token’s final appearance.
In the work above, note how there are 6 rows with 5 profiles per row. Each one of these headshots is separately collectable as a ‘Layer’ token, and each of their traits can be changed from black silhouettes to colorful headshots.
When the George Floyd protests struck the United States, virtually all of the individual Layer token owners of the piece promptly turned their tokens into the silhouette state as a demonstration of solidarity. It was a small protest through art and powered by Ethereum. This interaction took place in decentralized fashion and with no direct coordination between Layer holders.
[In another piece], Layer tokens change depending on BTC price data pulled from off-chain resources on an ongoing basis.”
“So, what exactly marks a crypto asset as impressive? High or low price is just as indicative of supply as it is of value. And value is just, like, your opinion, man. Market cap is a good measure, but half of it is just price. And while high volumes can indicate investor interest, they can just as easily highlight the churning of traders feasting on suckers.
Below, in absolutely no particular order (though we’ll count down from five anyway), using top-secret criteria we devised in a lab, are five cryptocurrencies that impressed us in 2020.
“Token Terminal is a data analytics platform that provides traditional financial metrics on crypto assets. While DeFi is new, we’re starting to grow our understanding of this nascent asset class.
As projects continue to mature, and report their costs and expenses on-chain (check out Yearn’s quarterly financial report), we can evolve the metrics and methods we use to compare these protocols, giving us a better understanding of the assets that underpin these systems. A year ago, we didn’t have these tools. Now, we do.
Metrics initially available in the Terminal:
- Market cap — what is a project valued at?
- Price to sales ratio (P/S) — how is a project valued in relation to its revenues?
- Token trading volume to market cap ratio (VOL/MC) — how efficient is the price discovery for a project’s native token?
- Total value locked (TVL) — how much money has been deposited into a project’s smart contracts?
- Gross merchandise volume (GMV) — what is the demand for a project’s service?
- Revenue—how much are users paying to use a project’s service?
- Take rate—what does it cost to use a project’s service?”
See Also: Token Terminal
“Year-to-date, BTC is up more than 275%. In the last 48 hours, it’s risen 14%.
With a market value of $512.34 billion, BTC is now more valuable than all but seven publicly traded companies, sitting between Alibaba at $545.4 billion and Tencent Holdings at $509.7 billion.
Institutional investors are perceived to be driving this record-setting run. Among them: Anthony Scaramucci’s Skybridge Capital ($25 million in December); MassMutual ($100 million in December); and Guggenheim (up to 10% of its $5 billion macro fund).”
See Also: Ether Trades Above $700 for the First Time Since 2018
See Also: Corporations Now Own $30 Billion in Bitcoin as Bull Run Pays Off
See Also: Deribit Adding Options to Allow Bitcoin Traders to Bet on Rally to $120K, $140K
“CME Group’s recent announcement that it will launch ether (ETH) futures on Feb. 8, 2021, is the “writing on the wall” that institutions will being buying the cryptocurrency next year.
They wouldn’t launch an $ETH product if there wasn’t any demand for it.”
“Bitstamp said it’s halting XRP trading and deposits for all U.S. customers on Jan. 8, 2021. U.S. customers will be able to withdraw their XRP even after trading is halted, Bitstamp said.
Bitstamp is the first major cryptocurrency exchange to take action on XRP in response to the SEC’s lawsuit against Ripple.”
“The token, named 1INCH and running on the Ethereum blockchain, will be distributed to all wallets that have previously interacted with 1inch (under certain trading conditions).
Kunz estimates that around 50,000 wallets will get the 6% of 1INCH supply in the first round of distribution. The current supply of 1INCH is 1.5 billion tokens. Mooniswap, in turn, has just been rebranded as 1inch Liquidity Protocol.”
See Also: 1INCH Token Release Details
“Russia would likely welcome replacements for SWIFT as the nation’s banks have been threatened with being removed from the network as part of broader sanctions against the country.
In this case SWIFT it may not be necessary, because it will be a different kind of technological interaction.”