News Recap: A Bright Future for Cryptocurrencies
Despite global uncertainties, cryptocurrency adoption is growing exponentially as more and more entities start accepting them.
Crypto Banks to Substitute Traditional Banks
According to an article written by Mark Binns, CEO of BIGG Digital Assets, within three years we could see crypto banks overtaking traditional fiat banks. As cryptocurrency adoption grows bigger, newer generations of customers will start seeking financial systems that incorporate both crypto and fiat assets. A key example of this is Kraken, the first-ever cryptocurrency business in the United States to become a certified bank.
Banks who decide not to incorporate this new asset class might lag behind as people start looking for Bitcoin as a potential hedge for economic inflation. It is important to understand that a more comprehensive, yet simpler user interface should help increase adoption as a lot of people are still hesitant due to their lack of understanding of the technology.
Bitcoin Pioneer Predicts $1 Trillion Bitcoin Market Cap
Adam Back, CEO of Blockstream, recently delivered a very bullish Bitcoin price prediction. Back thinks Bitcoin hitting a $1 Trillion market cap is “conservative”, hinting that he expects Bitcoin to reach those levels within the next couple of years.
Furthermore, a report by Yassine Elmandjra, an analyst at Ark, also forecasted a similar Bitcoin market cap, more specifically a market cap between $1- $5 Trillion by 2030.
DeFi propels Uniswap’s volume beyond Coinbase’s
According to data from Dune Analytics, during the month of September, Uniswap Decentralized Exchange (DEX) processed $15.371 billion in trading volume. During the same month, Coinbase processed nearly $13.6 billion.
Two significant major factors seem to be the source of this craze. The first one concerns the exponential growth of decentralized finance (DeFi) and yield farming of governance tokens. The second major factor refers to Uniswap’s governance token (UNI) launching in various exchanges.
Several Crypto Exchanges closing in 2020
According to the Crypto Wisser Exchange Graveyard, at least 75 crypto exchanges have closed down during 2020. Some of the reasons behind the aforementioned closures concern hacks, scams, and simple business closures. From the previous number, five of the exchanges were called scams while other four were labeled as being hacked.
One big explanation for this number is related to the growth of DeFi and decentralized exchanges. Additionally, development in regulations might have accelerated this during this year.
More about the author:
Patrick Maldonado is a Cryptocurrency Trader & Market Analyst at Alphachain Capital.