Cryptocurrency has seen its highs and lows over the past decade. As prices continue to fluctuate and new coins are being released, experts and media outlets alike are still trying to figure cryptocurrency out. And while the crypto world still remains unpredictable, certain trends are on the rise.
Increased interest in Ripple
Ripple sees a lot of hate on forums because it’s known as the bank’s cryptocurrency. But with rising keen interest in Ripple from institutions, the perception of Ripple (XRP) is quickly changing. Unlike Bitcoin and Ethereum, XRP also functions as a payment system. It’s latest products, xRapid eliminates delays in global payments and lowers cross-border payment costs. Currently, it’s being adopted by more than 20 financial institutions, bringing more credibility to the crypto space. In light of this, demand for Ripple is bound to rise as traction for Ripple’s new products gain momentum.
Rise of stablecoins
As the search for increased stability continues, interest in stablecoins is on the rise. Unlike traditional cryptocurrencies, stablecoins are pegged to an asset like fiat or other commodities. Venezuela’s government had stated plans to launch its own coin, Petro, which will be pegged to one barrel of oil. Although the plans did not materialise, it shows that governments and institutions from around the world are keen in creating a stable cryptocurrency.
Stablecoins are seen as a potential solution to stabilise the volatility of crypto assets and can be seen as a bridge between cryptocurrency and fiat currency. An increased interest in stable coins also seems to suggest that a significant portion of the crypto community are keen on making cryptocurrency a viable currency for everyday use. The rise of stable coins could also indicate that cryptocurrency would become more than just a form of speculative investment in the future.
More investment in blockchain technology
According to this article, blockchain technology has attracted the attention of many of the largest companies in the world. Be it the gaming industry, tech industry or even startups looking for ways to help the environment, companies have been looking into investing in blockchain technologies to find new solutions for existing problems.
In April 2019, PayPal has made its first blockchain investment in a blockchain technology company, Cambridge Blockchain. The startup uses blockchain technology to help financial institutions manage data through shared ledgers. According to this article, Cambridge Blockchain raised $3.5 million in new equity over a period of nine months.
Paypal’s spokesperson stated that “we made an investment in Cambridge Blockchain because it is applying blockchain for digital identity in a way that we believe could benefit financial services companies including PayPal. Our investment will allow us to explore potential collaborations to leverage blockchain technology.”
New regulations in place
Just as there are lots of new altcoins and crypto developments in the market, there will also be new government regulations in place. While some may see this as a form of government intrusion, not all regulation is bad news. As more businesses enter the sphere of cryptocurrency and blockchain technology, it’s vital for appropriate governmental legislation to be put in place. In order to keep up with changing times, regulations will be inevitable. Increased regulation signals a rise in interest in cryptocurrency, and a step towards merging crypto into the mainstream market.
When Bitcoin first made waves in the mainstream, many experts and media outlets were sceptical about its longevity. However, looking at these trends and new developments, it seems that cryptocurrency wouldn’t be disappearing any time soon. As major financial institutions, companies and governments get involved, cryptocurrency will be even more relevant in the future.