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2021 Predictions Unleashed! DeFi Experts Tell You What Might Happen in the New Year

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2021 Predictions Unleashed! DeFi Experts Tell You What Might Happen in the New Year

After the eventful autumn of 2020, many are now predicting the future development of the blockchain and cryptocurrency market in 2021. Previous reports have compiled insights from overseas all-star KOLs on their outlook for 2021. In a recent article, the self-media platform Bankless, focusing on decentralized finance, shared their team's predictions for 2021. Let's take a look at how these experts who have been deeply involved in the DeFi field for many years perceive the future developments.

Table of Contents

Ryan

  • With the increase in decentralized stablecoin protocols, the rise of crypto banks, and the adoption by traditional banks, the stablecoin market cap will exceed $250 billion.
  • The implementation of EIP1559 will activate Ethereum's "scarcity engine," meaning that after the protocol is implemented, a portion of ETH transaction fees will be burned.
  • Bitcoin is known as the "digital gold" in the market, and after Ethereum transitions its consensus mechanism to PoS, staking Ether can generate passive income. Therefore, Ethereum may be packaged as "internet bonds" circulating in traditional finance and mainstream media.
  • Central banks will implement Bitcoin reserves. They may either do so secretly and have it discovered later, or announce the policy proactively.
  • Friends and relatives will actively inquire about cryptocurrency investment-related questions.
  • The digital yuan will launch and succeed, forcing the U.S. to consider digital currency strategies.

David

  • Algorithmic stablecoins will reach a market cap of one billion dollars, and these types of stablecoins will ultimately be included in Curve's supported currencies.
  • At least one algorithmic stablecoin will explode. (Hopefully not included in Curve).
  • Throughout most of the year, the yield on staked Ether will maintain an APY of over 10% (in USD terms). At times, it may even spike above 30% during volatility. With the continued decline in traditional market yields, this will be a driving force for the public to purchase Ether.
  • At least one major gaming company will announce the integration of Ethereum NFT concepts into their games.
  • Maker, Aave, Compound, Synthetix, and Uniswap "will not" suffer hacks.
  • Due to strategic errors, Yearn will lose a portion of user funds.
  • The total supply of USDC will approach that of competitor USDT.
  • Tron may become the next project to be named by regulators after XRP.
  • Celebrities and influencers will create tokens named after themselves, airdropping them to fans, resulting in absurd market values.
  • Discord will become a primary platform for discussing cryptocurrencies.
  • Diem will officially launch, but no one really cares except regulatory agencies.

Lucas

  • Uniswap's annual trading volume will reach 1 trillion.
  • The sales value of crypto art will exceed $1 billion.
  • A large-scale black swan event similar to DAO will occur.
  • The market cap of DPI (DeFi Pulse Index) will exceed $1 billion.
  • DeFi derivatives will thrive, with synthetic asset protocols Synthetix and UMA, options protocols Hegic and Opyn, and futures trading protocols like FutureSwap, dYdX, and Perpetual Protocol, shining in the multi-trillion-dollar derivatives market.