The crypto market has surprised many with its bold performance over the last few years. It remains one of the fastest-growing sectors albeit it is plagued with serious volatility. But in 2021, we expect to see emerging new trends in the crypto market. If you are an investor or just someone interested in the direction the market is taking, these trends will be worth checking out.
First, it is expected that mergers and acquisitions will be massive in 2021. This will be a continuation of what we saw in 2020, where the value of M&A deals more than doubled compared to the previous years.
2020 also saw the value of each merger almost double. According to research done by Big Four, the value of a single merger jumped from $19.2 million to $57 million. This represents a rise of more than 174% in less than a year. The firm also notes that we are seeing a massive shift in drifts from traditional markets like Europe and the US toward Asia.
This trend is expected to continue even in 2021 and it’s likely going to define the crypto market a lot. But, unlike in previous years, the mergers are expected to be largely driven by big players. The crypto market will become more consolidated than ever before as big, well-funded firms, look to continue their robust M&A activity.
2021 will also increase the institutionalization of crypto. This trend has in the past been triggered by increasing media attention on digital currencies and support by central banks around the world. As a result, there will be more and more notable institutions joining the crypto market as potential investors. We foresee increased fundraising this year as well.
So far, the first quarter of the year has seen increased activity as far as fundraising goes. If current trends hold, 2021 could be one of the best funding years for firms in the crypto space. However, fundraisings should come from different parts of the world as opposed to the traditional markets in the US and Europe. The Asia Pacific region is expected to lead the way as far as fundraising for crypto goes.
These three trends no doubt have the ability to shape up the crypto market in the near and long-term future. Acceptance for digital currency is now widespread and even skeptics are starting to realize that the crypto industry will only get better and bigger.
While there will be challenges here and there, this industry is expected to maintain the rapid growth rates it has reported in recent times. Digital currencies like Bitcoin are now part and parcel of modern commerce and finance and we do not expect this to change anytime soon.