2021 was a turbulent year for the crypto market. We witnessed several highly volatile events that send investors into fits of frenzy trying to leverage their assets and stay on top of events. Bitcoin set new records twice but plummeted almost instantly afterward. Several other coins showed strong upward momentum, and by the end of the year, the market was largely stabilized. Then in February Russian invasion of Ukraine again set off a new wave of volatile movements and for now, the market seems to be quiet, as everybody is waiting to see how the events unfold. However, there are several emerging trends for 2022 that have remained fairly unobserved by the public and each of them can bring some drastic changes in the near future.
Decentralized finances (DeFi) is one of the trends that represent a core value of the crypto world. As a fairly new technology, it faces a lot of birthing issues, like privacy concerns, scalability, credit score ratings, and several others. However, its advantages of it are simply too big to ignore and for the first time, total funds deposited in DeFi services exceeded US$200 billion. That number is expected to grow substantially in 2022, as more and more financial institutions and even governments adopt DeFi as a standard for conducting all business. We have witnessed several new and promising DeFi projects, each with their own coins and tokens, but it is hard to pinpoint which, if any, will be dominant in 2022.
Many experts agree that the biggest obstacle in the way of wide crypto adoption is the lack of regulation that contributes to market volatility. As long as massive shifts can rock the crypto market to its foundation, the lack of trust will continue to impede implementation. The easiest way to curb them is through wide regulations that will bring some order to predictability to what can now be described as the Wild West phase in crypto development. Of course, not everyone is thrilled with the prospect of governments meddling in crypto affairs, but at this moment, it seems unavoidable.
This is the million-dollar question and anyone who gets the answer right might as well start planning an early retirement on a tropical island of his or her choice. The problem is that there are so many coins in circulation, with new ones emerging daily, that getting it right is a very tall order. Some experts agree that the next cryptocurrency to explode in 2022 could be Terra Luna. The native coin of the Terra network, LUNA aspires to become a cornerstone of a global payment system and is making all the right moves in that direction. If you are looking for information on where to buy Terra Luna, it is easily found, as the coin is listed on all major crypto exchanges.
One of the potentially most profound changes blockchain technology brings is the development of Web 3.0. It is a new crypto trend that will change forever how we deal with cryptocurrencies. It will allow smart contracts that will power the automatization of transactions, seamlessly integrating them into our daily lives. Coupled with the inherent transparency of the blockchain, it will grant users access to the Internet content in a whole different manner than we are seeing today. Peer-to-peer exchange of content may very well spell the death of content gatherers like YouTube and Instagram.
Metaverse is one of those terms we keep hearing about, but it somehow fails to materialize. Until now, that is. The perfect storm of gaming popularity, cryptocurrencies, NFTs, Virtual Reality, social media presence, and interactive content will give birth to the massive immersive worlds we can access through the Internet. Whether that is a good or bad thing for human society is still up for debate, but the fact is that it can scarcely be avoided at this point. Buckle up, cause metaverse is here.
Many national banks have decided to explore the possibilities that cryptocurrencies offer and have already created digital versions of their national currencies, called Central Bank Digital Currencies (CBDCs). These CBDCs are present on all major crypto trading platforms and people are used to them. As we see more governments regulations, CBDCs will rise in importance and will become one of the most popular trading assets on the crypto market. The allure is easy to see, a crypto that is backed by a major national bank will always have value and will present some interesting investment options.
A combination of the words game and finances, GameFi represents a combination of cryptocurrencies, NFTs, blockchain, and gaming mechanics. The aim is to create a space where people can gather and play games to earn money. The concept isn't entirely new, but we have lacked the technology to implement it until now. This innovative play-to-win approach will create an online hub or hub for all those interested in playing games for money. Considering how many will be attracted by this, we expect that opportunities for earning will be numerous. After all, who doesn't want to get paid for playing games?
Marc Cuban described DAOs as "the ultimate combination of capitalism and progressivism." While Cuban is known to make some outlandish statements in the past, this one seems fairly accurate. DAOs or decentralized autonomous organizations have made a strong appearance in 2021. Anyone can form a DAO. A group of friends can get together, pool their resources, and decide to invest in forwarding their mission. It is essentially an Internet community with a shared wallet. The mission can be, for instance, to support some open source project or simply to have more assets to invest. Either way, DAOs can be one of the biggest trends in 2022, as they offer massive opportunities to those who know how to use them.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.