For cryptocurrencies, 2021 was a landmark year. According to data by Grayscale Investments, over half of the individuals who possess Bitcoin (BTC) in the United States just purchased it this year. For example, NFT and decentralized finance are both seeing rapid growth, with some of the most popular cryptos seeing returns in excess of 5,00%. Also, a lot of Bitcoin price prediction are seen along with the increase in BTC trend.
2022 Crypto Trends
- The gaming industry and the Metaverse are only going to expand
Gaming on the blockchain had achieved its zenith by 2021, at which point it would be ready for prime time. It was Axie Infinity that invented the notion of “play-to-win” video games (AXS). As the quality of graphics and gameplay in crypto games rose, so did interest in them. Users may earn tokens that can be exchanged for real money on a cryptocurrency exchange by playing “play-to-earn” games, as the name implies.
The popularity of the Metaverse has been gradually rising even before Facebook designated Meta as a virtual environment. It’s still up in the air whether virtual worlds will be decentralized or dominated by large businesses. We should anticipate cryptocurrencies to play a role in this evolution since they are the most probable method of payment in the Metaverse.
- Web 3 will begin to take form in the near future
Decentralized, Web 3 is a next version of the internet where users are compensated for donating their time, creating communities, and publishing messages. But its ramifications go well beyond what’s been said about gaming and Metaverse thus far.
When it comes to the future of web 3.0, the same holds true as with Metaverse. There are many who see this as a potential for individuals to be liberated from the sway of large businesses over their online activities and social media interactions. Our personal data and tokens for participation would instead be in control of us.
We’re unlikely to see the large players totally disappear from the market, since existing firms are already searching for methods to remain relevant. However, as an investor, you should keep an eye out for anything relevant to Web 3.
- Regulators and the government will be more involved in the future
There has been a looming threat of greater global crypto regulation this year. It is evident that governments can no longer ignore cryptocurrencies, from China’s efforts to prohibit it completely to El Salvador’s recognition of Bitcoin as legal cash. Governments are expected to take action in the following ways:
- Regulations for stablecoins: To put it simply, a stablecoin is a cryptocurrency that has its value tied to another commodity, like gold or the US dollar. A run on a certain currency is possible, but authorities have concerns about the underlying assets of some of these currencies. New restrictions are likely to be implemented early in the next year.
- Increased oversight of the cryptocurrency industry: Additionally, governments are debating how best to safeguard investors without limiting the whole cryptocurrency business. This year has seen a great deal of discussion, which will almost certainly lead to action in the year 2022.
- Digital currency issued by the central bank (CBDCs): CBDCs or government-issued coins, such as the digital dollar, are being considered by several countries. In contrast to current cryptocurrencies, they would be backed by governments and major financial institutions.. As the digital Yuan pilot project nears completion, all eyes are on China.
- Adoption will rise even more
Chainalysis revealed an 880 percent increase in worldwide crypto usage at the end of Q2 2021 compared to the previous year. For the first time, more people are purchasing cryptocurrencies, more companies are accepting it, and consumers have a wider range of alternatives for purchasing cryptocurrency and earning interest on it than ever before. Bitcoin payments may now be sent through WhatsApp’s pilot programme, which was introduced earlier this month. Because of the increasing popularity of cryptocurrencies and decentralized financial systems projected in the year 2022, this trend is likely to continue into the next year as well.
- Increased institutional involvement is also expected
More venture capitalists have put money into cryptocurrencies this year than any before. 62% of the world’s largest financial institutions plan to invest in cryptocurrencies this year, according to Nickel Digital Asset Management (NDAM).
Investors’ faith has grown with the implementation of new rules. A spot Bitcoin ETF, rather than a futures ETF, may be approved shortly by the SEC, allowing investors to buy and sell Bitcoin directly rather than via derivatives.