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Cryptocurrency trends that shaped 2020
Even with the global Covid-19 pandemic currently underway, it still appears as though 2020 has been a good year for the crypto industry…
Even with the global Covid-19 pandemic currently underway, it still appears as though 2020 has been a good year for the crypto industry. We have seen the release of various tokens, as well as the entire but even a whole host of existing altcoins have gained immense popularity through the course of the year. Starting with the leader of the cryptocurrency industry, Bitcoin. It was the newest addition to the PayPal platform, which was one of the most significant events for the cryptocurrency. At the start of this year, Bitcoin was trading for $7,411 per coin in the month and it has since gained significant traction, which has set its current price to $31,000. Institutions such as JPMorgan, Goldman Sachs and Grayscale, Bitcoin has solidified its place in several investment portfolios as the asset to hold as a hedge against inflation. Due to the participation of such institutions, investors are becoming more and more bullish on Bitcoin, with some predicting that it will reach $1 million by 2025. Many crypto assets have seen incredible 12-month returns, and in this year-end article, we will be assessing the winners and losers of the cryptocurrency industry through the unprecedented times of 2020.
Similar to Bitcoin, Ethereum has seen monumental success through the past 12 months. Owning a market capitalization of $68,127B, Ethereum has displayed that it’s a powerful contender. Commencing the year at approximately $125, this altcoin gained in value to about $600 at its peak this year, representing a 380 percent growth within one year. Ethereum’s platform has made it the go-to station for many, due to it’s open-source blockchain network, developers of decentralized apps prefer it because of its interoperability and uniformity. The concept of Ethereum 2.0 has planned for an upgrade could allow thousands more transactions to take place every second. Even though Ethereum formally switched to version 2.0, the network is largely dependent on the computing power of miners. The developers also launched PoS alongside, to gradually recruit the stakers necessary to ensure the secure operation of the network. Meanwhile, investors believe it could also lead to larger adoption of Ether as well as price appreciation.
Unlike the other cryptocurrencies in the industry, Litecoin did not have any bullish trends this year, but still made significant progress throughout the course of 2020. At the beginning of the year, the altcoin was trading at a price of approximately $35, which is a massive contrast from it’s current value of $85 per coin. This particular crypto is indicated to be one of the easiest to mine. It takes the shortest time of all the cryptocurrencies and has one of the highest block rewards compared to other cryptocurrencies. Therefore, there is no doubt that the current market cap of $5,792B is set to soar to greater heights in the near future
Another cryptocurrency that has performed adverse to the mainstream coins of the industry, is Ripple. Ripple faced a plunge in it’s price levels after Coinbase became the latest U.S. crypto exchange to remove the altocoin from their platform, due to a recent SEC lawsuit against Ripple Labs Inc. As a result of the suit, the price of XRP plunged by 25 percent, and some trading has been halted. Ripple launched an immediate response, calling the suit an attack on the emergent cryptocurrency industry at large. The primary difference between the functions of Ripple and other cryptocurrencies, is that it focuses largely on financial institutions rather than individual users. The objective of this unique cryptocurrency is to improve the speed of cross-border transactions. However, despite being a powerful cryptocurrency in it’s respective fashion, the altcoin is currently trading at $0.519, a loss from the highest mark of $2.77 some time ago.
Despite the uncertainties that has been brought by the year 2020, and as a result has caused markets and economies to plummet significantly — The world of cryptocurrency has managed to prevail against all the odds and obstacles that came in the way.
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