Cryptocurrency Trends To Watch Out For In 2020

Cryptocurrencies have been big news for several years, and in 2020 they look set to take off in an even bigger way. 2019 was an especially remarkable year in the worldwide crypto market. There were new and innovative trading solutions, new groupings and several blockchain protocols which emerged and matured.

Global regulatory bodies also started to become less apprehensive when it came to dealing with cryptocurrencies and even began to develop blockchain infrastructures of their own. More online casinos like those listed on began to accept Bitcoin and other cryptocurrencies as payment.

Even China entered into the arena of global competition to drive innovation still further. It’s clear that the crypto and blockchain market is certainly on an uptrend. Momentum is picking up and 2020 looks very promising for the sector. So which trends should we be looking out for this year?

DeFi – Decentralized Finance

Known in popular culture as DeFi, decentralized finance is likely to be the way forward in 2020 due to the wide-ranging advantages that it offers. DeFi is a natural breeding ground allowing for innovation to thrive and decentralized finance projects have exceeded $650 million in value to date. Although it would never have been believed just a handful of years ago, secure and trustless provisions of financial services have begun to introduce new margin trading and lending facilities, allowing traders to switch easily between various debt positions. Babel Finance and other market operators are also assisting big-time miners in availing major capital by keeping cryptocurrencies as collateral.

The Arrival Of Ethereum 2.0

Phase 0 of Ethereum 2.0 has now come to its final testing phase and its multi-client test-nest has been publically launched. The teams that have been spearheading the components and clients’ development have listened carefully to community feedback and have been giving regular and active updates about developments. As a result, confidence has increased in the Etherum blockchain and this could lead to at least a partial launch during 2020.

More Crypto Derivatives

In recent times, crypto derivatives have grown substantially both in accessibility and size. Not so long ago, only a couple of exchanges offered them, however now most enable investors the opportunity to trade in options and futures for large-cap cryptocurrencies. As a result, the market will become a lot more competitive during 2020 with more exchanges jumping into the picture.

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The Lightning Network

For crypto traders, the Lightning network is a boon (albeit in disguise). This layer-2 payment protocol implemented on all blockchain-based currencies paves the route for instant settlements of bitcoin transactions. This protocol also uses off-chain data in order to catalyze transaction speeds and decrease the associated charges. Over 2020, it’s likely that more channels, applications and nodes will be established building on the lightning network infrastructure, bringing even greater efficiency to the market.

More Transaction Privacy

Privacy has long been a concern in the market, and this is something that has only increased over recent years. Luckily, many new privacy tools have been developed in order to resolve this problem. Nightfall, for example, was developed by Ernst & Young for Ethereum ecosystem private transactions. This is one key example of the way in which companies are likely to drive transactions over the public main-net with zero-knowledge privacy protocols having been put in place. Considerable momentum is likely to be seen in this area together with multi-party computations.

New Crypto-Friendly Regulations

Over the last two years, one U.S. state (Wyoming) has enacted no less than 13 laws surrounding cryptocurrencies and blockchain. This led to America’s most sparsely populated state becoming an unlikely global hotspot for cryptocurrency organisations. Wyoming’s new regulations are friendly to digital banking, separating digital assets into three separate categories. It’s unsurprising that other regulatory bodies and U.S. states rapidly followed suit and it’s highly likely that in 2020 more regulators will jump on this bandwagon.

It’s clear that 2020 will be vital for cryptocurrencies and blockchain technology. Many experts think that 2020 will have a secular bull market as the consolidation period appears to be fading out. Already, digital assets are a strong force so it is sure to be very interesting to find out how this year will pan out.

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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