While the digital transformation has waged its war of change across all industries, in few sectors are the effects of this trend more evident than in FinTech. To illustrate this point, consider this statistic: In 2010, US FinTechs garnered less than $1 billion in venture funding; by 2020, that number skyrocketed to $20.5 billion. 

In this blog series, we’ll explore the meaning behind these numbers and shed light on the opportunities that await. 

Crypto Asserts itself into the Mainstream

The past years have held steady momentum for cryptocurrency, bringing it from its dark corner in the back of the store to prime position in the window display. But with popularity comes scrutiny—we’ll explore more below:

As of November 2020, private addresses on Bitcoin reached an all-time high of 25.6 million and daily active addresses reached a peak of 1.4 million this April, indicating a much more robust engagement within the network. 

Responding to this level of activity, apps now allow consumers to purchase crypto with the press of a thumb and stablecoin wallets are in high demand for both consumers and institutions—a far cry from where we stood mere years ago. 

A few more notable developments to pay attention to in the crypto space:

  • A rise in the number of larger holders and institutional accounts holding Bitcoin as a treasury asset. 
  • The introduction of crypto EFTs.
  • An increase in the number of institutions moving their asset allocations to Bitcoin
  • The decentralized finance crypto market cap has exploded from $2 billion in January 2020 to $126 billion in April 2021

What to expect going forward:

  • A rise in crypto use cases as a native currency on the internet.
  • An increase in the number and convenience of applications to support the crypto community.
  • As government regulations increase, so too will volatility in the digital asset market. 

Just a few months ago, new crypto regulations in the US (mandating that any crypto transfer worth $10,000+ be reported to the IRS) brought about simultaneous volatility in price. But as regulations mature and the accompanying questions become answered in the future, expect more stability and less volatility. 

Looking for world-class talent in the fintech and lending space? Martin Executive Recruiting has the expertise and network to connect you with your ideal hire. Get in touch with us today and learn what we can do for you.

*For an exhaustive look at the trends discussed in this blog series, reference this article.