As a year marked by the capitalization of the cryptocurrency market which has nearly tripled, 2019 is certainly ending with a positive balance for the sector. During this period the market began to count with the participation of large companies, such as Facebook, Walmart and AirAsia. In addition, the cryptocurrencies are getting closer and closer to the mainstream. And what are the cryptocurrency trends for 2020?
Check out some of the trend expectations for the cryptocurrency market:
Stablecoins gaining space in the market
One of the most observed movements in the last two years was the increased popularity of the stablecoins, which should remain. Currently, tether is the leader in this segment. The currency already has a market capitalization of US$ 4 billion. It is used in major trading pairs in dozens of cryptocurrency exchanges worldwide.
In addition, 2019 was the year of the BRZ launch, the main stablecoin pegged to the Brazilian real.
Large companies investing in their own cryptocurrencies
This year was also marked by the launch of stablecoins of large technology companies and multinational financial organizations. Among them, Facebook and JPMorgan Chase, which announced the creation of their own native tokens. With the launch of JPM Coin and Libra foreseen for the next year, it is also expected to know whether other companies will follow this trend and create their own cryptocurrencies.
Cryptocurrencies and blockchain technology have drawn a lot of attention from governments and central banks, sometimes for opposing issues. On the one hand, some are afraid to adopt the technology. Others, such as Venezuela, decided to launch their own tokens to circumvent a weak local economy and escape from international sanctions.
China, in turn, said the country must accelerate the issuance of its own digital currency to compete with he libra of Facebook as part of the rivalry of the “technological warfare” with the United States. Thus, government integrations should be one of the main trends for cryptocurrencies by 2020.
Rise and applications domain
Another trend in 2019 was the increase in the number of users of token-based applications such as Brave Browser, Steemit, and Alluva. While Brave surpassed 8 million users this month and partnered with Everipedia, Steemit announced the Smart Media Tokens, a new cryptocurrency dedicated to digital content entrepreneurs.
Cryptocurrencies as a key element in the financial ecosystem
The year was also marked by the entry of the main players in the financial sector and fintechs in the cryptocurrency sector. Among them, the owner of the New York Stock Exchange and a large number of global market companies such as CME Group.
These companies, for example, offer Bitcoin futures contracts, custody services and other options for institutional investors. As a result, large investors, who were a minority in the cryptocurrency market, now invest in large amounts of money.
Other exchanges that are directing projects to accredited investors in the United States are Coinbase, Kraken and Gemini. Given the rapid growth of the cryptocurrency ecosystem in the last decade, it is expected that this is just the beginning. Regulatory changes, new technologies and the discovery of new use cases have the potential to significantly influence and shake the market. With that, what we can expect is that they will continue to do this in the coming months and years.