5 cryptocurrency trends to watch in 2022

2021 was a year of epic growth for cryptocurrencies.

The market has taken a major step toward maturity as trends such as non-fungible tokens (NFTs) and the metaverse have gained momentum and regulators have sparked a heated debate about the ever-increasing role of this asset class in the economy. world.

The coming year may bring another whirlwind of change as the cryptocurrency market matures against a backdrop of changing macroeconomics and rising inflation † In five short trends, here’s what to watch for in early 2022.

Cryptocurrencies are unregulated and highly speculative instruments. There is no consumer protection. Your capital is at risk.

1. NFTs go beyond JPEG

Non-Fungible Tokens (NFTs) became popular in 2021. There is a long list of brands, from Adidas to Budweiser, from Pepsi to Warner Bros, which has released its own collections; sports fans rushed to buy tokenized tickets for their favorite team on platforms like chilli † and luxury fashion houses, including Givenchy, have launched tokens to drive exclusivity.

A series of developments that demonstrated the revolutionary potential of “NFT”, voted Word of the Year by the Collins Dictionary.

In 2022, NFTs will go beyond collectible JPEGs. The NFL partners with polygon use NFT for ticketing; TikTok has released trending videos in the form of NFTs; and a host of companies are starting to use unique tokens to revolutionize the way they finance, license, and advertise products.

2. The rise of blockchain-based video games and the metaverse

2021 saw the rise of a younger and faster generation of blockchains, including Solarium that provides the high performance needed to produce advanced video games.

Meanwhile, the first video games with cryptocurrencies have been successful. axie infinity has attracted almost 2 million daily users with game mechanics aimed at making money, and investments have poured into metaverse projects around the world: Facebook has changed its name to goal Tech giants Microsoft and Amazon have taken their first steps in this direction, while venture capitalists have pledged billions to bring the metaverse to life.

By early 2022, this market sector will be ready to enter the mainstream. All that is missing is the catalytic action of a quality game or social platform that can attract a large audience and not just simple cryptocurrency enthusiasts.

Cryptocurrencies are unregulated and highly speculative instruments. There is no consumer protection. Your capital is at risk.

3. Tier 2 Coins Steal the Spotlight

The popularity of decentralized finance (DeFi) and NFTs has caused bottlenecks in Ethereum, driving network costs to unprecedented levels.

In this context, Tier 2 extensions such as Polygon (MATIC) they have seen epic growth, offering faster speeds and lower costs without compromising decentralization or security.

The trend will accelerate in 2022, supported by crypto innovations such as Optimistic Rollups and Zero-Knowledge Rollups, which after years of development are finally ready to be implemented.

Cryptocurrencies are unregulated and highly speculative instruments. There is no consumer protection. Your capital is at risk.

4. Cryptocurrency payments are all the rage

2021 showed that the payment giants see cryptocurrencies not as a threat, but as an opportunity: Visa launched a cryptocurrency advisory service, MasterCard started supporting digital currencies and WhatsApp started testing cryptocurrency payments through the Novi wallet.

Even governments have not escaped the potential of cryptocurrency payments. El Salvador said it is saving $400 million a year in Western Union fees by using Bitcoin for money transfers, and a parallel Myanmar government has adopted Tether as its official currency.

All events that could be the first signs of a global transformation in payments and remittances; a revolution that will likely gain momentum in 2022, as more and more companies and institutions realize that money can be exchanged instantly and cheaply, as easily as sending an email.

Cryptocurrencies are unregulated and highly speculative instruments. There is no consumer protection. Your capital is at risk.

5. More regulation

Authorities around the world, starting with Gary Gensler, a former blockchain professor and chairman of the Securities and Exchange Commission (SEC), are racing to refine regulatory frameworks.

In the United States, authorities are discussing a “cryptocurrency sprint” to quickly bring the sector into line, while across the Atlantic, the European Union’s (EU) proposed regulatory framework dubbed “Crypto Asset Markets.” be law.

Such developments are likely to mean tighter oversight of the digital asset ecosystem than in the past, but if the approval of multiple Bitcoin ETFs around the world and the successful outcome of the recent cryptocurrency hearing Ushering in the future evolution of the industry in the US Congress, 2022 could be the year regulators take digital assets with a grain of salt.

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