Crypto took over the headline in 2021. From NFT to Metaverse, there were no late news days. The rapid growth of cryptocurrencies offers investment opportunities not only for the average individual, but also for large corporations.
As a result of technological advances, digital assets are increasing. More countries around the world are implementing decentralized technology as a payment option. To achieve a profitable investment in this market, you need to know which cryptocurrency trends are relevant in 2022.
Notable crypto trends
1. NFT doesn’t go anywhere:
In 2021, non-fungible tokens (NFTs) were the hottest topic in the blockchain world.Artwork such as Beeples For the first 5000 days, we got astronomical prices and brought the concept of unique digital tokens stored on the blockchain to the hearts of the general public. Bands such as Kings of Leon, Shawn Mendes, and Grimes have all released NFTs and have a good reputation in the music industry.
Metaverse soared to public awareness in the fourth quarter of 2021 Facebook, Microsoft, Baidu, Huawei Buy into hype. Metaverse is based on NFTs and ownership tokenization that can link the physical and digital worlds.
NFT Sales by category. Source: CryptoSlam
NFT platforms such as OpenSea, games such as Axie Infinity, and artwork such as CryptoPunks have their own team of traders, creators and service providers. In 2021, the number of unique NFT wallets increased by more than 1000%. This trend is expected to continue until the New Year.
2.Play-to-earn games are in great demand.
Axie Infinity, Splinterlands, Decentraland When sandbox This is an example of a Play-to-Earn game that is steadily introducing cryptography to the general public and increasing access to DeFi and NFT. Coinlist polls show that the interface between DeFi and games will continue to gain momentum in 2022, making game-oriented platforms such as Flow and Immutable X more important. Thanks to blockchain, a new generation of gamers will be able to own in-game assets and redeem them in the secondary marketplace. As a result, these ecosystems are expected to make great strides next year and be widely appreciated.
Play-to-earn users and transaction volume growth over the last few months. Source: DappRadar
Next year, the gaming business may enter the crypto industry through mergers and acquisitions. Ubisoft, a AAA game business Officially revealed The in-game product will be tokenized as an NFT on the Tezos network.
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3. Adoption of smart contracts that are expected to explode:
From NFT ownership to smart contracts, Ethereum networks are used in a wide range of applications. Due to the rapid spread and adoption of Ethereum-based projects, Ethereum network transactions increased dramatically in 2021 (like NFTs). Smart contract networks like Ethereum and Solana are expected to continue to grow in transaction size and value as the network of players and use cases grows.
Source: Messari, VanEck.
4. Bitcoin and Altcoin to realize huge potential prices:
Price forecast Especially when it comes to Bitcoin and other digital assets, it is notorious for being extremely demanding.
In the current discussion, targets above $ 100,000 occur fairly often, but are usually estimated to be at least a few years apart. Given recent price volatility, such goals may not seem straightforward, but a trend towards broader use and integration supports this forecast.
BTC/USD rallying close to $50k. Source: TradingView
Given the strong macro tailwind and rising inflation, it is impossible to see a future in which Bitcoin will no longer be supported and the rest of the cryptocurrencies will rise. Despite the fact that Bitcoin’s market share has dropped from 70% to 41% this year, Ethereum remains the only true competitor. However, given that Ethereum is intensifying competition with other L1, it is unlikely that flipping will occur in 2022.
El Salvador became the first country to adopt Bitcoin Legal tender September 2021. It is expected that more countries will adopt Bitcoin, and its value will recover steadily.
5. Cryptographic regulation of steroids:
If 2021 was the year we discussed cryptocurrency regulation, 2022 could be the year of action. Because, even if nothing else, it shows that cryptocurrencies will not run out soon in 2021, which has led many regulators to stand up and pay attention.
Some countries may maintain a restrictive stance on cryptocurrencies, but commentators say the overall trend, even if that means implementing some precautions. Believes that it will move towards greater acceptance of cryptocurrencies. Regulators have a better understanding of space, so it is less likely that cryptocurrency bans will increase.
Cryptocurrencies in countries that develop their own currencies that central banks can control instead of adopting existing decentralized currencies will also expand in 2022.
Stablecoins are regulated in different parts of the world. America, the European UnionThe UK, in particular, is working on stablecoin regulation.Rules for Crypto Assets (MiCA) Market The EU follows the same path as the UK.
Related Articles | Future outlook: What should EU regulations on the crypto sector look like?
Featured image from Pixabay, charts from DappRadar, Messari, and TradingView