Since COVID-19 hit in 2020, everything has changed. From the way we go about our everyday lives to how to deal with our finances, we have had to look for alternative ways to do things. However, While we were all sitting at home and watching economies plummeting, one industry seemed to be skyrocketing despite all odds. The crypto industry has been booming in 2021 and is no longer a niche concept dominated by tech experts. Rather, it has become a viable alternative asset for pretty much everyone.
The transition started quite slowly but has picked up considerable steam over the past year. Since January 1st of this year, the total market capitalization of the digital asset industry has grown from about $770 billion to $1.56 trillion. Even after the market crash, the cryptocurrency industry has seen an ROI of 101%, outpacing the growth rate of other asset classes.
Acknowledging that the crypto market is here to stay is just the first step to understanding how it has impacted the world’s economy. The second is getting a grasp on all the factors that have led to the exponential rise of the digital asset industry in 2021.
One of the main reasons behind the rise of the crypto market in 2021 is the institutional adoption of digital assets. Since mid-2020, at the height of the pandemic, institutional investors started capitalizing on Bitcoin’s high growth rate and excellent store-of-value qualities. Both private and publicly traded companies, hedge funds, and even some countries’ governments have arrived on the institutional crypto investment scene. All these parties understand the potential the crypto space has to transform the world. Some prime examples of organizations that have adopted crypto include MicroStrategy, Tesla, and Japanese video gaming firm NEXON.
The second reason for the rise of the crypto industry is the fact that many major financial firms have adopted crypto for payment. Before 2020, there were not a lot of large financial players that accepted crypto payments. Instead, corporations had a tendency to speak negatively of Bitcoin and refer to cryptocurrency as a phase or a “bubble”. However, this sentiment has now changed dramatically.
In fact, many leading financial institutions and payment firms are now experimenting with crypto or have already integrated it into their ecosystems. A great example of this is JP Morgan. Back in September 2017, the CEO of the investment bank was reported to have called Bitcoin a fraud. Beyond that, he said that the digital asset is “worse than tulip bulbs.” Tulips were used as a form of currency for quite some time back in the day before people developed currencies with monetary value.
Despite his initial sentiments, JPM has reportedly launched a Bitcoin fund. What’s more, he’s predicted that bitcoin will soon be competing with gold. Another example of a large financial company adopting crypto is the payment giant PayPal. The company announced in late 2020 that it will allow its US customers to purchase crypto. Additionally, the company shared the news with the financial industry that they would be rolling out digital asset payments to 29 million merchants.
The sentiment surrounding crypto is changing and major market players are now adopting the system. For this reason, it may soon become the standard among businesses to accept crypto as a payment method. Moreover, with more consumers realizing the potential of crypto, businesses will have no choice but to offer crypto payments in order to fulfill the rising demand.
Defi has continued to boom in 2021. Since 2020, the popularity of decentralized finance has driven the success of the crypto industry. The sector’s market has expanded from $15.8 billion to $56 billion, representing a massive growth of over 250% as of May 24th.
By providing users with decentralized alternatives to traditional finance solutions including lending, borrowing, and savings, DeFi has become a popular movement in the cryptocurrency industry. Unlike banks, anyone can use DeFi goods without restriction. The remarkable growth of DeFi in 2021 is made all the more impressive when we realize that it thrived despite Ethereum’s scalability difficulties. As a result, DeFi is predicted to continue to grow in 2021, with the launch of Ethereum 2.0 expected to provide a considerable boost in the next two years.
Finally, the rise in the crypto industry is partly due to the rise in NFTs. Non-fungible tokens have also taken the crypto market by storm. NFTs are one-of-a-kind, irreplaceable tokens that represent digital valuables, licenses, artwork, and even personal data, all of which can be readily authenticated on the blockchain.
Many people have understood the potential of NFTs, resulting in a major uptick in the crypto market. However, if the NFT market is to maintain its rapid growth in the next few years, service providers must devote significant resources to technology development. NFTs are created using the same programming language as cryptocurrencies, but that is where the similarities end. Like physical money or cryptocurrency, fungible assets or tokens are supposed to be traded or exchanged for one another and have the same value.
NFTs, on the other hand, each has a digital signature that makes it nearly impossible to swap for or equalize them, which is why they are non-fungible. When it comes to understanding how they function, it’s important to remember that they’re built on top of a blockchain, which can be thought of as a form of database that holds data in digitally linked groups. To go into further detail, each group or block of data has a certain amount of storage space.
Additional data will be “chained” to the original block when it reaches its capacity limit. In the end, all chained blocks will establish a long history that will last forever. Every time an NFT sells, details of the new ownership will be added to a new chain, ensuring that the NFT’s history and ownership are secure. NFTs have an advantage because existing methods for issuing, registering, and exchanging them already exist.
Crypto has caused governments and centralized authorities to run scared due to the fact that it is giving power back to people compared to the traditional financial sector. Even so, there is no stopping the potential of the industry.
In order to help people achieve financial and economic growth, Jada Finance has created a cryptocurrency ecosystem that boosts financial and economic development through Artificial Intelligence. This AI-driven ecosystem analyses financial and economic behavior, learning from every scenario and creating decisions that lead to growth for participants. Jada AI helps by giving participants access to smart banking that makes their money work for them. This ecosystem also creates new opportunities to earn more value, such as new employment and business opportunities.
While their ecosystem is still in development, the native currency – Jades – is already available for purchase. Crypto enthusiasts can either hold onto the Jades and then use them on the platform upon launch. Alternatively, you can sell them for profit once the price starts appreciating in value upon listing in crypto exchanges.
If you’re interested in reserving tokens on Jada’s financial ecosystem, reach out here.