The year 2021 was a tumultuous one for the cryptocurrency industry. We saw numerous extremely volatile occurrences that sent traders into a frenzy as they attempted to leverage their holdings and keep on top of movements. Bitcoin achieved two new peaks but then fell nearly immediately. Several other currencies gained significant traction, and the market had fully steadied by the end of the year.
Then, in February, Russia’s invasion of Ukraine triggered a fresh round of volatility movements. The market appears quiet for the time being as everyone, including the investors, traders and crypto exchanges, wait to see how events evolve. However, there are numerous rising trends for 2022 that have largely gone unnoticed by the audience, and each of them has the capability to bring about significant changes in the near future. Here are the latest crypto trends you should watch out for in 2022.
- THE EMERGENCE OF WEB 3.0
The emergence of Web 3.0 is undoubtedly one of the most dramatic shifts brought about by blockchain technology. It is a new cryptocurrency trend that will permanently alter how we interact with cryptocurrencies. It will enable smart contracts to fuel transaction automation, effortlessly incorporating them into our everyday routines. Combined with the inherent openness of the blockchain, it will provide people with access to Internet information in a completely different way than we are now experiencing. A peer-to-peer content exchange might mean the end of content collectors like YouTube and Instagram.
- A SIGNIFICANT SHIFT TO DEFI
One of the developments representing a core value of the crypto realm is decentralised financing (DeFi). As a relatively new technology, it confronts several challenges, including privacy issues, scalability, credit score ratings, and many others. Nevertheless, the benefits are simply too great to overlook, and for the first time, total cash deposited in DeFi services surpassed US$200 billion (SOURCE). This figure will likely rise significantly in 2022 as more financial firms and even authorities embrace DeFi as a norm for all commercial transactions. We’ve seen numerous new and exciting DeFi initiatives emerge, each with its own coin and tokens, but it’s difficult to predict which will be dominant in 2022.
- GAMES TURNED TO GAMEFI
With some of the biggest names in the gaming industry developing in-game NFT assets, it’s no surprise that GameFi (gaming and finance) is gaining popularity among players and developers alike. Axie Infinity, which is influenced by Pokémon and features collectable pets called ‘Axies,’ is one of the largest brands in this market. It is said to have amassed over a billion dollars in in-game assets via coins that can be utilised in the game’s ecosystem. Gaming and NFTs appear to be a perfect pairing, and we’re only getting warmed up with what’s possible. Keep a watch out for NFTs from games such as Thunder Lands and Meta wars this year.
- THE IDEA OF REGULATING CRYPTO MARKETS
If 2021 was the year for discussion about cryptocurrency regulation, 2022 is expected to be a year for implementation. Because, if nothing else, 2021 has proved that virtual currency isn’t going anywhere any time soon, prompting several regulatory agencies to take notice.
Many analysts think that the most significant barrier to widespread crypto adoption is a lack of regulation, which leads to market volatility. A lack of confidence will hinder adoption as long as big movements may shake the crypto market to its core. The simplest approach to stop them is to impose broad laws that would provide some order and predictability to what is presently known as the Wild West era of cryptocurrency growth. Of course, not everyone is excited by the possibility of governments interfering in crypto matters, but for the time being, it appears inescapable.
- THE ASCEND OF METAVERSE
The metaverse is one of those concepts that we constantly hear about but never see come to fruition. That is, until now. The Internet’s vast immersive worlds will be born from a potent mix of gaming appeal, virtual currencies, NFTs, Virtual Reality, social media presence, and interactive features. Whether this is a good or negative thing for human civilisation is debatable, but the reality remains that it cannot be prevented at this time. Gear up, for the metaverse has arrived.
FINAL THOUGHTS:
With modern media extending into the metaverse and fashion brands dabbling in NFTs, the future of cryptos and NFTs seems brighter than ever. Some technologies are still being developed, but there is little question that some of these sectors, particularly music and gaming, will experience significant changes in approach as more individuals enter the crypto and NFT field. Just watch out and keep an eye on the latest trends, and you are well to go on this fantastic yet unpredictable crypto journey.