6 cryptocurrency predictions for 2022
As the end of 2021 approaches, it’s hard not to start thinking about what’s to come in the cryptocurrency arena in the New Year. How will the market evolve? What surprises await us? Will bitcoin stay bullish or turn bearish? Well, that’s why BeInCrypto has prepared a list of our 6 best predictions for digital assets in 2022.
Now, that should probably go without saying, but none of this is investment advice and we may be wrong with any of these predictions. These aren’t specific prices or dates to watch out for, just a few basic observations on where things appear to be heading, largely based on the events of 2021 and a little common sense. With that said, let’s jump straight to our list of predictions on what could happen in the coming year.
- DeFi will continue to thrive
2020 and 2021 have seen the world of Decentralized Finance develop considerably. From a locked-in total value of just over $ 10 billion at the start of 2020, the field now enjoys a healthy market cap of $ 100 billion and above. Plus, given everything that’s going on in crypto and by extension DeFi, there’s really no reason to think more money won’t keep pouring into space.
There are frankly so many projects, such as Polygon, Solana, Internet Computer and many others, that are just starting to get wet in the DeFi arena and seem to have so much to offer. Additionally, while Ethereum’s fees have made DeFi on this blockchain more than a little expensive, as we move towards the true launch of Ethereum 2.0, those fees should become much more manageable. To be clear, while we are very optimistic about the general future of Ethereum, the launch of Eth 2.0 in 2022 is not part of our specific prediction.
The point we’re trying to make is that as more and more people realize DeFi’s potential and more of its services are integrated into the growing metaverse, we think it’s safe to expect the area to continue growing for at least another year, and probably a lot longer.
Top 6 Crypto Firms Going Public With IPOs In 2021 And 2022
- More crypto companies will go public
In 2021, Coinbase first went public in April, with admittedly mixed results.
Then, in October, Bakkt did exactly the same. By extension, we think it’s more than likely that in 2022 we’ll see more companies follow suit. Nor is it just widespread speculation, as several companies have said directly, or not so directly, that they plan to go public with their efforts in the coming months.
Big names too, like Kraken, BlockFi and Gemini. Now, of course, we can’t say precisely which companies will actually launch an IPO in 2022, but based on all the talk, we think it’s very likely that several more will. It remains to be seen whether these are the ones we just mentioned, or new surprises from an unexpected place.
- More companies will accept crypto
Just as more and more companies involved in crypto are likely to go public, we also suspect an increase in the number of companies that accept various forms of crypto. 2021 has already seen a lot of good news on this front. Take for example Regal Cinemas, which recently announced its partnership with the Gemini-linked Flexa platform to accept multiple cryptocurrencies as payments for movie tickets and snacks.
Then there’s electronics retailer Newegg, which has revealed it will accept payments in Shiba Inu through a BitPay partnership. Although somewhat unexpected, this opens yet another avenue for buying goods using cryptocurrency.
Perhaps the most exciting and broadest reach of all, Mastercard has actually partnered with Bakkt to offer crypto wallets, as well as crypto credit and debit cards, to all of their customers. This means that any retailer that accepts MasterCard should soon be able to accept and offer rewards in cryptocurrency. There have actually been a lot more stories like this throughout the year, but the announcement of MasterCard is certainly the closest step we have seen into the future of ‘crypto as cash. That many supporters expected.
- More countries will move towards recognizing cryptography and / or manufacturing their own coins
Another of the biggest crypto news of 2021 is expected to be the fact that El Salvador started accepting the asset as legal tender earlier this year. Well, we won’t have the audacity to say that a flood of other countries will follow immediately. Already, some countries like China and India have made it clear that they won’t recognize Bitcoin anytime soon.
Additionally, the fact that the International Monetary Fund, or IMF, has even gone so far as to discourage any nation from engaging with crypto as a currency. The IMF as well as many of the world’s major nations are turning to central bank digital currencies, or CBDCs, instead. As you probably know, CBDCs are essentially bank-run cryptocurrencies, which the whole movement has tried to move away from.
However, there are other places, like Panama, where in September Congressman Gabriel Silva introduced a new bill that would make Bitcoin a national alternative for payments. While this is certainly encouraging, the bill has certainly not yet been passed.
Basically it’s starting to look like bigger nations, with already stronger economic systems that prefer the CBDC path. Smaller countries have focused more on imports and remittances, but seem a bit more interested in free market digital assets. Obviously, it’s far too early to really tell, but it looks like many countries will continue to explore at least one of these options as the New Year approaches.
- NFTs as art will cool down, but other NFT use cases will heat up
The rise of NFT has been such a big part of 2021, that Collins Dictionary has even named “NFT” the word of the year. Now NFTs have been around for years, but something changed in 2021 and the whole scene exploded when the world caught the NFT fever and everyone from Gamestop and Macy’s to Martha Stewart and Snoop Dogg turned out. implied.
Again, much of this was big news, so you’ve probably heard of it before. However, our prediction for 2022 is not that the market for NFT collectibles will fade or even shrink at all, but rather that in the public mindset, more people will start to see beyond the hype commercial images and begin to understand the broader possibilities of DTV.
The main thing to note is that NFTs are going to revolutionize online gaming, business, and more. For example, items your avatar wields or wears in a virtual world will actually be yours, easily transferable across all platforms, and may be sold in secondary markets at your discretion. This fact alone is huge for gaming.
In fact, there are many other applications as well. Even boring things like decentralized supply chain management and biometrically enforced autonomous digital identifications could in fact form a large part of our world’s infrastructure in the years to come, and NFTs are the backbone technology that drives us. makes it possible. Whatever use case you’re most interested in, the idea is that the hype is going to keep on going for more NFT use cases, even though the NFT art is probably not going anywhere.
- The market will turn bearish
Now pretty much every forecast we’ve made has been bullish so why do we say the market will turn bearish? Simple: Market cycles. You see, the overall ebb and flow of a growing market is actually pretty well documented, and Bitcoin is arguably even more regular due to the halving event that takes place every four years.
Take a look at this pretty famous infographic called the Wall Street Cheat Sheet. This is a generic example of the general trend of growing markets. It certainly looks like we are somewhere between optimism and thrill as this was written, but as you can see it cannot increase indefinitely. At some point in the coming months, we’ll likely see a phase of euphoria, followed by a crash.
It’s fair to note that some have observed that the time it takes for the peak to occur also lengthens a bit with each cycle. We are absolutely not here to make specific predictions or give investment advice, but we cannot ignore that it seems likely that we will peak at some point in 2022.
Overall, it’s healthy and expected for the market. A new cycle will begin, and in about four years Bitcoin is likely to hit even higher highs. That being said, there are many variables at play, such as global regulations or industry adoption rates, that could increase price action outside of a normal market cycle, for better or for the better. the worst.
Well, that will do it for our 2022 predictions! Hope we’ve given you some food for thought, but as always, do your own research and make your own decisions. If you hadn’t noticed, the basic trend in all of our speculation is that the broader crypto market, and its adoption, will continue to grow over the next 12 months. There is simply too much interest, development, and actual business flowing into the space to suggest anything else. That being said, general growth doesn’t always immediately equate to constantly rising valuations, and as we mentioned, there are so many moving parts that making specific predictions will usually lead to mistakes.
So our best advice is not to worry about new historical records and focus on new projects, partnerships and assets that will undoubtedly be rolled out in 2022. Also, check back regularly to BeInCrypto for updates, because there are bound to be many surprises that we could never foresee, along the way.
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