Cryptocurrencies are a form of digital currency based on mathematical algorithms. Encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Cryptocurrencies operate independently of central banks.  Bitcoin is the cryptocurrency that first introduced blockchain technology to the world.

Listed below are the top cryptocurrencies predictions, as identified by GlobalData.

Bitcoin will most likely have big news regarding its development rather than price movement as the space matures.

Ethereum will move more aggressively towards a Proof-of-Stake system and will implement sharding. This will make the platform a lot faster and more streamlined.

ICOs will most likely get another nail in their coffin. People are moving away from the ICO craze of early 2018 and looking for a more secure way to invest in startups with good potential.

The implementation and success of updates like Lightning Network  or Alchemy  will ramp up adoption, as it is easier and more convenient to create blockchain-based projects.

As the space matures, more and more coins that have limited use cases or have ‘failed’ will merge their mining with Bitcoin.

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By GlobalData

Monero will continue to update its network as it will remain the mainstream privacy coin of choice for most people.

Decentralised Finance and blockchain-based open finance will grow strongly as companies like J.P. Morgan are launching their own stablecoin.

Still on the subject of stablecoins, DAI will continue on its path of being the de facto stablecoin for Ethereum-based services as more apps join its ecosystem.

Delistings will only increase on the most popular exchanges. Most ICO tokens will face the reality of having had funds for two years and nothing to show for it. The combination of delistings and the struggle of ICO tokens to stay relevant and power through their lack of funds will enforce the ‘zombie token’ phenomena. The market will continue purging projects that add no value.

This is an edited extract from the Banking & Payments Predictions 2020 – Thematic Research report produced by GlobalData Thematic Research.