This year had been an explosive one for the cryptoeconomy, and the superstar of the show up to now has quickly been Ethereum and its own blooming DeFi and NFT arenas. That’s interesting, nonetheless it seems today in retrospect everyone underestimated just how significantly the Ethereum ecosystem and its own sectors would advance this season.
Analysis
All having said that, right? So, being an Ethereum analyst, listed below are my 2021 predictions, i.electronic. 10 milestones I believe the Ethereum community has excellent chances of notching next yr.
Uniswap Hits $10B
As Ethereum’s premier decentralized swap, Uniswap was right in the centre of a lot of 2020’s DeFi swell. That propelled the investing protocol into getting DeFi’s largest dApp at this time with a complete value locked (TVL) of +$2.6 billion USD.
I say Uniswap’s superior service and position continues to propel its growth to the stage that the project’s TVL grows 4x from here and easily surpasses $10 billion in 2021. At press time, the TVL of the complete DeFi ecosystem was $11 billion, so if Uniswap accomplishes such growth so fast it’ll really be quite the show.
Rai
Serious Dai Competitor. Leading decentralized lending protocol MakerDAO used to only underpin its Dai stablecoin with ETH as collateral. Because the project’s since embraced other tokens as collateral types, new forms of risks which have been introduced that have switched off some users.
What’s attractive to lots of folks in DeFi, then, may be the idea of a far more conservative Dai competitor. And that’s where in fact the upstart Rai project will come in. Notably, Rai depends on reflex bonds (comparable to a far more stable version of ETH) for collateral and contains a minimized-governance structure. This model makes Rai poised to get some serious adoption in 2021 (and beyond).
Miners
Miners WILL UNDOUBTEDLY BE Officially Phased Out. The Ethereum blockchain has been bootstrapped by proof-of-work (PoW) mining. But this mining won’t be here for a lot longer.
That’s because Ethereum is kicking off its “ETH2” Serenity upgrade in late 2020 with the launch of Serenity’s Phase 0. This puts Ethereum on pace to attain Phase 1.5 in late 2021, wherein the ETH1 blockchain will undoubtedly be immortalized as an individual shard on ETH2’s Beacon Chain. At this time, Ethereum mining will finally be over.
Needless to say, so it’s feasible for Phase 1.5 gets pushed back again to 2022.
Defense
Governance Projects Double Down on Defense. Governance tokens attended to the fore in DeFi this season. These assets allow holders to collectively choose protocol decisions in a decentralized manner, so they’ve been increasingly embraced in the ecosystem lately.
This week lending protocol MakerDAO saw a governance vote suffering from a flash loan scheme for the very first time ever. Having said that, I expect protocols around DeFi to start out to harden against this sort of attack vector in 2021.
Multi-Chain
Multi-Chain Trend Increases. Ethereum’s may be the dominant economic climate in the cryptoeconomy and you will be for the foreseeable future. Having said that, for instance, Needless to say, which means this is that sort of hybrid model that I believe we’ll see a many more of in the years ahead.
Ethereum Staking
It Generates Major Activity. Staking’s already found its way to the cryptoeconomy, but once Ethereum begins its pivot to proof-of-stake in ETH2 in late 2020, we’ll start to see the space’s staking industry begin to really kick off like nothing you’ve seen prior. This trend is only going to generate stream throughout 2021, too.
New companies will rise. New users should come. New innovations will focus on the droves of new stakers. It is possible to count on it.
DeFi Hackers
DeFi Hackers Will Improve. DeFi has seen its share of sophisticated attacks this season. But the ecosystem continues to be early and blackhats have only begun to wrap their heads around how exactly to exploit dApps accordingly.
Don’t misunderstand me, either. But it’s because they’ll need to
Ethereum’s non-fungible token (NFT) sector – which encompasses things such as digital art, digital land, gaming assets, and beyond – really began to catch fire in 2020. Going off the final prediction, but I believe next year may be the first time it happens. And when it can, and the cycle continues on and on. My 10 predictions listed below are ones I think have a good to high likelihood of occurring in 2021. For the time being, we’ll have to relax and see what goes on.