Crypto Booms of 2017 and 2021 – Look through the Main Differences
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Since the beginning of 2020, the Bitcoin price has skyrocketed by more than 800%, while the overall capitalization of the crypto market has jumped by more than 1050%, reaching the mark of $2 trillion. The crypto community reminded the previous crypto boom of 2017. Meanwhile, these two market explosions are entirely different; this is why holders should compare them thoroughly to understand the core differences.
The interest of institutional investors: major players to give the market a second wind
The crypto boom 2020 was primarily marked by the interest of institutional investors. The world crisis impacted by the pandemic forced them to look from a different perspective. During the stagnation of S&P 500 and Dow Jones indexes, Bitcoin made a wind sprint, bringing unbelievable profits to holders.
As such, institutional investors changed their opinions, accepting cryptocurrencies as promising instruments with a great future. At present, more than 30% of such investors prefer to keep Bitcoin and other digital assets in their portfolios.
Furthermore, 85% of institutional investors holding crypto assets are reportedly going to enlarge the number of digital assets, foreseeing their growing perspectives.
Cryptocurrencies to become widely used instruments
If to look back to 2017, the crypto boom was mainly supported by the FOMO effect, as the vast majority of hodlers had no idea what to do with their digital assets.
In 2017, the average daily trading volumes were about $2.8-4 billion, while in 2020 this index reached $100 billion per 24 hours. The number of crypto-accepting businesses rapidly grows, and hodlers have a set of opportunities to spend their digital assets. Moreover, the number of cities where people may live without using fiat currencies increases as well.
People pay taxes, buy tickets, purchase items of everyday use for BTC and other cryptocurrencies, and this tendency is about to expand.
The crypto market to connect other participants
The crypto boom 2021 transforms the whole ecosystem, upgrading it to a brand new level and uniting diverse members.
As of 2017, the crypto community included holders of blockchain wallets who were buying, selling, and exchanging cryptocurrencies. At present, the situation has changed essentially, as the crypto ecosystem has diverse branches.
The DeFi market has built a bridge between blockchain technologies and traditional finances. Non-fungible tokens have opened access for representatives of the art area. The biggest banks join the trend as well. JPMorgan accepts the investment potential of cryptocurrencies, stating that 1% of digital assets in the portfolio are entirely OK. Morgan Stanley and Deutsche Bank pave the same path.
This said, what do we have now? Big players are about to revolutionize the crypto market, pushing the world towards mass adoption. This crypto boom review shows that digital assets have even more potential for their further growth.
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