The first quarter of 2021 ended yesterday, March 31, which brought many positive changes to the cryptocurrency market and created the foundation for the future development of digital coins. The main groundwork for this is, first of all, the full-fledged formation of a positive news background around the cryptocurrency market, as well as attracting large investors to the industry. Also, an important achievement of the first quarter was the expansion of the capabilities of the BTC/USD pair and a significant increase in demand in the cryptocurrency market.
In the second quarter of 2021, crypto assets will continue to develop at the cyclical pace that the market gained in March. The trend, as before, will be set by the BTC/USD pair, which is again approaching historical marks. Now Bitcoin indicators are at around $58,500. By mid-April, BTC can be expected to set a new maximum capitalization. This is due to the growing volume of daily trading, as well as the positive attitude of institutional investors. The start of a full-fledged vaccination, as well as news about the imminent introduction of measures to stimulate the economy by the Biden administration, charge large companies with a positive attitude. Also, some of these funds can be used directly to stimulating the cryptocurrency market.
The current indicators of the BTC/USD pair indicate that in the second quarter there are all the prerequisites for the asset to reach the level of $70,000-$75,000. We should not expect more growth, given the tendency of cryptocurrency holders to take profits in BTC. This prevents the asset's quotes from growing significantly in price. You should also be wary of a price correction, which cyclically covers the market when setting new historical records, as happened in mid-March when bitcoin reached $61,100.
In addition, promising altcoins will begin to increase their market dominance percentage. First of all, this concerns cryptocurrencies, which will update blockchain networks in the second quarter: Ethereum, Polkadot, and Cardano. Thanks to large investment and research inflows, these assets can help the development of two important areas in the cryptocurrency space. It is already well known that ETH 2.0 will be based on the Proof of Stake algorithm, which is used in staking. During the first "merge" transaction of Ethereum versions, it was proven that the energy savings are 99%. This "green trend" may gain more popularity in the second quarter of 2021 due to the development of altcoins that will use staking technologies rather than mining.
Another important factor in the renewal of the Ethereum, Polkadot, and Cardano networks will be the ability to carry out more than 1,000 transactions per second. This could make assets a cutting edge cryptocurrency tool for household financial transactions. The leading role in these processes is assigned to ETH, which is actively developing the Visa and PayPal payment systems. With the current performance of altcoins, as well as future innovations, we can safely assume that Ethereum, Polkadot, and Cardano will significantly increase their presence in the cryptocurrency market.
It is also worth taking a look at the XRP/USD pair, which has been showing very good gains lately. Now the quotes of the asset are at around $0.560 and are confidently holding on to safe positions. This is due to the activities of the Ripple company, as well as the course of the litigation between the company and the SEC. Most likely, in the second quarter of 2021, new important information will appear that can significantly strengthen the position of the XRP token. Given the dynamics of the price of the token, as well as the latest published information from the SEC, the likelihood of a positive outcome for the cryptocurrency is very high.
