The year 2021 has seen the best start for the cryptocurrency industry as it hit the $1 trillion benchmark in the first five days of the running month. Right from the beginning of the year 2021, the cryptocurrency industry has been experiencing all-time highs.
When it comes to market capitalization, Bitcoin (BTC) is the largest cryptocurrency in the entire industry. Ever since the beginning of the year 2020, Bitcoin (BTC) had started building up on its market capitalization and price.
Towards the end of the year, Bitcoin (BTC) managed to hit all-time highs and shot through the $20k per BTC mark. While many thought that Bitcoin (BTC) was going to plunge after hitting its all-time high for the year 2020, it managed to prove everyone wrong.
Even in the year 2021, Bitcoin (BTC) kept at its bullish trend and went all the way up to $41k before plunging down to $30k per BTC in a matter of 48 hours. Since then, Bitcoin (BTC) has been having a hard time remaining stable at a value. At the moment, Bitcoin (BTC) is struggling to stay above the $30k per BTC market.
While Bitcoin (BTC) has started showing a bearish nature and is currently struggling, altcoins have started gaining a lot of price surges. Cryptocurrencies such as Ethereum (ETH), Litcoin (LTC), Metacoin (MTC), and many more are experiencing their all-time highs.
However, many analysts and experts are still in doubt about the overall performance of the cryptocurrency industry. They are still confused as to what the future holds for the industry and exactly what to expect from it.
Recently, the Vice President of Blockfi for Asia and Europe shared his views on the liquidity of the cryptocurrency assets. The vice-president, David Olsson stated that although the cryptocurrency industry is showing a bullish nature, but the concern is that how long it will manage to maintain it.
Olsson shared his views and thoughts around the cryptocurrencies during the CfC Moritz Conference that took place on January 20, 2021.
While sharing his views, the vice president talked about the performance of Chainlink (LINK) that has emerged in the recent year. Olsson stated that LINK has showed a lot of potential and growth in the recent year and is also experiencing a high transaction volume.
However, there have been many cryptocurrencies that have managed to emerge at one moment and vanished in the second.
He stated that although the cryptocurrency industry has crossed the $1 trillion mark, still it has a long way to go for mainstream adoption. In order to gain mainstream adoption, the industry needs to become stable and reliable. That is only possible when the industry is able to maintain its daily transaction volumes.
Olsson predicted that if the industry wants to excel and reach the $2 trillion market, then it needs to achieve a trading volume of at least $100 million per day. Once that happens, the industry will be able to achieve a market capitalization above $1 trillion that will bring it more adoption.