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What is the current state of cryptocurrencies?

The invention of cryptocurrency is a testament to the popular saying; money makes the world go round. A cryptocurrency is a digital form of money that can be used to conduct business transactions virtually. Since the invention of cryptocurrency, there have been several types, some of the most common ones being; Bitcoin, Ethereum, Tether, Tron, Litecoin, and Bitcoin Cash.

In recent years, banks, businesses, and other financial institutions have adopted the use of cryptocurrency as a means of payment. Several cryptocurrency options have received various ratings on US-reviews.

Furthermore, finance company reviews have also shown that cryptocurrency is undoubtedly the right choice for online transactions. This year has been full of ups and downs in the world of finance and cryptocurrency too, most notably, the global Coronavirus pandemic affected the cryptocurrency world greatly. In the subsequent part of this article, we shall be looking at the current state of cryptocurrencies.

The present crisis has caused a notable ripple effect across several finance industries. With the stock market going down by 30%, gold and cryptocurrencies like Bitcoin went into a tandem, and even oil traded at a negative price. But since then, the market has displayed a shockingly fast bounce back. Cryptocurrencies value has notably increased substantially.

Cryptocurrency is no longer for geeks alone

The global image of cryptocurrency is changing faster than expected. Ethereum and Bitcoin aren’t bubbles anymore; Bitcoin’s market capitalization alone is now more significant than world-renowned brands like Coca-Cola and Intel combined. Furthermore, institutional involvement in cryptocurrency is rising steadily as the demand for Bitcoin increased despite the Coronavirus pandemic, as Grayscale witnessed a surging increase in its asset this year. More hedge funds are storing up cryptocurrencies, which would most likely continue this year.

Growing decentralized finance adoption

Defi or Decentralised finance since 2019 has become a popular trend. The sector has grown so fast in the past six months that it has set a new milestone as the total value of decentralized finance, Defi, hit $4 billion. The majority of companies that operate in the field of blockchain have introduced their own Defi products with common protocols like Balancer, Compound, Curve, and several other platforms, opening doors to a new world of cryptocurrency.

Cryptocurrency prominence

Presently, cryptocurrency like Bitcoin has 33 million addresses worldwide, with about 1 million active users on a daily basis and 10,000 notes supporting the network. Although it is also in development, Bitcoin is the most notable and backed cryptocurrency asset, having the potential to keep vital information like ownership of real estate or sidechain transactions.

In conclusion, despite the Coronavirus pandemic, which had the world and financial sector on a standstill for months, many people bought cryptocurrency more than they have in the past two years as it is way easier and accessible than it was then.What this year has shown is that cryptocurrency can withstand major financial setbacks, and now more than ever, major financial companies and individuals are adapting to make use of It.