Cryptocurrency predictions for 2022
Towards the end of 2021, the community is excited to see what will happen in the crypto space in the new year. The article will highlight the top 6 predictions for digital assets in 2022 based on the events of 2021 and some common sense.
DeFi will continue to thrive
The world of decentralized finance will grow significantly in 2020 and 2021. From a total locked-in value of just over $ 10 billion at the beginning of 2020, the sector now has an additional market cap of $ 100 billion. Furthermore, given all that is going on in the ever-expanding crypto and DeFi space, there is really no reason to believe that investors will not continue to put money into this space.
Total value locked in DeFi | Source: DeFi Pulse |
There are many projects such as Polygon, Solana, Internet Computer … especially in the DeFi area and they seem to have a lot to offer.
As more people realize the potential of DeFi, and more services are integrated into the growing metaverse, it is expected that the sector will continue to grow for at least another year and perhaps longer.
Other cryptocurrency companies are listed publicly.
One of the highlights of 2021 is Coinbase’s first public listing in April, with Coinbase’s share price not really skyrocketing since May.
Source: TradingView |
Bakkt also went public in October. So maybe this will continue until 2022. Several companies have either announced directly or indicated that they will begin issuing shares in the coming months.
Based on all of the ongoing discussions, it is likely that big names like Kraken, BlockFi, and Gemini will be added to the public list. It is currently not clear which companies will actually go public in 2022.
More companies will accept cryptocurrencies
The number of companies accepting crypto deals will increase in the new year. 2021 brought a lot of good news in this regard. For example, Regal Cinemas recently announced a partnership with the Flexa platform, which is linked to Gemini, to accept multiple cryptocurrencies as payment for movie tickets and snacks.
Later, e-retailer Newegg announced that it would accept payments in SHIB through a partnership with BitPay. Although somewhat unexpected, it opens up yet another way of buying goods with cryptocurrency.
Perhaps the most popular and interesting approach in particular is the partnership between Mastercard and Bakkt to offer crypto wallets, credit cards and debit cards to all of their customers. This is hands down the biggest step towards the crypto future that many proponents have been waiting for.
Many countries will recognize cryptocurrencies or create their own coins
In 2021, El Salvador started accepting cryptocurrencies as legal money earlier this year, which was one of its biggest success stories. Of course, there is a good chance that a number of other countries and territories will soon do the same. However, some countries like China and India have made it clear that they will not recognize Bitcoin.
The International Monetary Fund (IMF) even advises countries against using cryptocurrencies as a currency. Instead, the IMF and many world powers are moving towards the digital currency of the central bank (CBDC). CBDC is basically a cryptocurrency operated by a bank and that’s what the entire crypto space is trying to get out of.
Using NFT will heat up
The arrival of the NFT is a big part of the year 2021. The Collins Dictionary ranks “NFT” as the word of the year. Although it has been around for many years, NFT won’t really see a transformation until 2021.
NFT aims to revolutionize online gaming, business and more. For example, items your avatar uses or wears in the virtual world actually belong to you. You can easily transfer them across platforms and sell them on the secondary market. This alone is enough to attract players.
Bitcoin will fall in price
At the moment all predictions are bullish, so why say the market is going to fall? Simply because of the market cycles. Bitcoin’s market cycle is said to be more frequent as the halving event occurs every four years.
Above is a well-known Wall Street cheat sheet that illustrates the general trend in emerging markets. At some point in the coming months, we will likely experience a period of euphoria followed by a crash.
Trader Byzantine General tweeted in October:
“The 2017 bull market lasted about 35% longer than the 2013 bull market. If we assume that this will also last about 35% longer than the previous one, then the bull market will end at the end of the first quarter of 2021.”
Source: Byzantine General |
Conclude
The best advice for investors is not to worry too much about all-time highs. But let’s focus on new projects, partnerships, and assets that are sure to start in 2022.
Author
Market
Cryptocurrency predictions for 2022
Cryptocurrency predictions for 2022
Towards the end of 2021, the community is excited to see what will happen in the crypto space in the new year. The article will highlight the top 6 predictions for digital assets in 2022 based on the events of 2021 and some common sense.
DeFi will continue to thrive
The world of decentralized finance will grow significantly in 2020 and 2021. From a total locked-in value of just over $ 10 billion at the beginning of 2020, the sector now has an additional market cap of $ 100 billion. Furthermore, given all that is going on in the ever-expanding crypto and DeFi space, there is really no reason to believe that investors will not continue to put money into this space.
|
Total value locked in DeFi | Source: DeFi Pulse |
There are many projects such as Polygon, Solana, Internet Computer … especially in the DeFi area and they seem to have a lot to offer.
As more people realize the potential of DeFi, and more services are integrated into the growing metaverse, it is expected that the sector will continue to grow for at least another year and perhaps longer.
Other cryptocurrency companies are listed publicly.
One of the highlights of 2021 is Coinbase’s first public listing in April, with Coinbase’s share price not really skyrocketing since May.
|
Source: TradingView |
Bakkt also went public in October. So maybe this will continue until 2022. Several companies have either announced directly or indicated that they will begin issuing shares in the coming months.
Based on all of the ongoing discussions, it is likely that big names like Kraken, BlockFi, and Gemini will be added to the public list. It is currently not clear which companies will actually go public in 2022.
More companies will accept cryptocurrencies
The number of companies accepting crypto deals will increase in the new year. 2021 brought a lot of good news in this regard. For example, Regal Cinemas recently announced a partnership with the Flexa platform, which is linked to Gemini, to accept multiple cryptocurrencies as payment for movie tickets and snacks.
Later, e-retailer Newegg announced that it would accept payments in SHIB through a partnership with BitPay. Although somewhat unexpected, it opens up yet another way of buying goods with cryptocurrency.
Perhaps the most popular and interesting approach in particular is the partnership between Mastercard and Bakkt to offer crypto wallets, credit cards and debit cards to all of their customers. This is hands down the biggest step towards the crypto future that many proponents have been waiting for.
Many countries will recognize cryptocurrencies or create their own coins
In 2021, El Salvador started accepting cryptocurrencies as legal money earlier this year, which was one of its biggest success stories. Of course, there is a good chance that a number of other countries and territories will soon do the same. However, some countries like China and India have made it clear that they will not recognize Bitcoin.
The International Monetary Fund (IMF) even advises countries against using cryptocurrencies as a currency. Instead, the IMF and many world powers are moving towards the digital currency of the central bank (CBDC). CBDC is basically a cryptocurrency operated by a bank and that’s what the entire crypto space is trying to get out of.
Using NFT will heat up
The arrival of the NFT is a big part of the year 2021. The Collins Dictionary ranks “NFT” as the word of the year. Although it has been around for many years, NFT won’t really see a transformation until 2021.
NFT aims to revolutionize online gaming, business and more. For example, items your avatar uses or wears in the virtual world actually belong to you. You can easily transfer them across platforms and sell them on the secondary market. This alone is enough to attract players.
Bitcoin will fall in price
At the moment all predictions are bullish, so why say the market is going to fall? Simply because of the market cycles. Bitcoin’s market cycle is said to be more frequent as the halving event occurs every four years.
Above is a well-known Wall Street cheat sheet that illustrates the general trend in emerging markets. At some point in the coming months, we will likely experience a period of euphoria followed by a crash.
Trader Byzantine General tweeted in October:
“The 2017 bull market lasted about 35% longer than the 2013 bull market. If we assume that this will also last about 35% longer than the previous one, then the bull market will end at the end of the first quarter of 2021.”
|
Source: Byzantine General |
Conclude
The best advice for investors is not to worry too much about all-time highs. But let’s focus on new projects, partnerships, and assets that are sure to start in 2022.
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