What 2022 Will Look Like for Crypto?

Cryptocurrency finally became popular in 2021, making it the most significant year in its history. In addition to Bitcoin’s 60% rise, Ethereum’s 40% increase, and Binance Coin’s 1,300% gain, several other tokens saw significant rises as well. There was the widespread acceptance of cryptocurrency by large institutions, corporations, and even governments, such as El Salvador, that resulted in Bitcoin becoming legal tender. We can also thank the DeFi, NFT, and Metaverse communities for their innovation and integration in this arena.

With the support of high-profile figures such as Elon Musk and Eminem, we have a slew of reasons to say that 2021 was the most significant year in the history of cryptocurrency. So, what can we expect in the year 2022?

While no one is forecasting a 2018-style crash, the market may struggle to repeat last year’s amazing gains. One thing is certain: cryptocurrencies have a lot of expectations to meet. Despite this, there are a number of promising developments in the cryptocurrency sector to keep an eye on as this new year. We have also covered some FAQs about Dogecoin.

DeFi’s 

2021 proved to be a good year for decentralized finance, which allows financial goods without the need for middlemen like banks. A combined $41 billion in DeFi contracts is projected to be in place by March of this year as a result of increased adoption. As a result, hundreds of new DeFi dApps may look forward to a watershed year in 2022.

However, DeFi’s growth is not just due to the fact that it provides its customers with actual financial independence and banks the unbanked. Millions of others will be able to invest in it, as well. Yield farming, which rewards crypto asset owners for securing decentralized networks, is a prominent area of DeFi investment. When it comes to providing liquidity, the Compound Finance Protocol is one of the most popular DeFi apps, as long as the user has an Ethereum wallet and adheres to its fundamental rules. Also check out how to make passive income with crypto.

NFTs

In 2021, the total sales volume of non-fungible tokens topped $20 billion. Beeple’s single JPG sold for a record $69 million, with hundreds of additional multi-million dollar purchases of Bored Ape Yacht Club and CryptoPunks NFT products also making headlines.

But NFTs are here to stay, even if the enthusiasm and eye-watering price tags of NFTs begin to fade. As a matter of fact, the possibilities for their use are virtually limitless and include anything from gaming to the arts to real estate and the tokenization of assets. With NFTs, artists and musicians are able to embed automated royalties into the resale of their works, making it easier for them to make money. By utilizing NFTs to fractionate property ownership, real estate sellers may broaden their reach to millions of potential purchasers.

It indicates that not just NFTs, but also the markets that offer them, have a bright future ahead of them. Over 60% of 2021’s total sales were recorded as coming from OpenSea, making them the clear market leader. Keep an eye out for the rise of additional decentralized platforms like Infinity. Unlike OpenSea, Infinity’s decentralized NFT marketplace attempts to better express and incorporate the community’s desires. Together with Common Protocol, Infinity hopes to move toward a form of direct governance and to minimize the cost of listing NFTs by charging a transaction charge of 1.5 percent. This money will go to the Infinity community’s treasury.

The Metaverse

As a platform for social interaction, recreation, commerce, business, gaming, and education, among other things, in 2022, the Metaverse’s interactive nature will guarantee that it will grow to be a far greater part of our culture and economy than it is right now.

The Metaverse, a digital environment where individuals may interact with digital avatars using VR, AR, and video technologies, has a lot of potential. Our digital and physical lives will become increasingly intertwined in the future, making our online interactions more authentic.

The Metaverse will not be dominated by Facebook (NASDAQ:FB), despite the fact that Mark Zuckerberg has been one of the most prominent proponents of it. Instead, the really decentralized metaverses will capture the public’s attention. In virtual worlds such as The Sandbox and Decentraland, residents can acquire digital land rights using NFTs, which can be used to buy and sell virtual property. With DEA’s Play Mining platform, users may explore new worlds, combat and perform tasks, acquire in-game materials, and then sell them to other players. This is another hot potential metaverse entry.

No one really knows what the Metaverse will look like or how much it will impact the way we interact with technology as it is still in its infancy. Though the Metaverse and its growth are still years away, 2022 will be a pivotal year in determining how the masses will interact with virtual environments in the future.

Web3’s

As DeFi, NFTs, and the Metaverse come together, we should expect to see the birth of a new Web3 ecology in 2022.

Static Web1, as typified by Netscape and AOL, was the first step in the internet’s growth. Web3 is the following step. There was a second web, Web2, which was more interesting, but it was dominated by giant firms like Google and Facebook (NASDAQ:GOOG). Web3 promises a completely decentralized and permissionless internet, allowing people to take back control of their own data.

It is expected that play-to-earn gaming will once again be one of the driving forces behind Web 3.0. Solana, which has a $150 million Web3 gaming fund, and Axie Infinity, which has more than 2 million monthly active gamers, show that P2E gaming has already made it big.

However, Web3 is more than just a game platform. A decentralized cloud storage platform and marketplace known as Siacoin operates by encrypting and sharing data across the network. In contrast to standard cloud storage, Siacoin gives users full control over their private encryption keys.

DAOs

Tokenized assets and decentralized governance were all hot topics in the year 2021 for decentralized autonomous organizations (DAOs), which quickly rose to prominence as community-led institutions for a variety of purposes, including investment, fundraising, and asset management.

DAOs provide a new mechanism for crypto enterprises to go public, offering an alternative to the usual board structure of huge corporations. DeFi programs like Uniswap and MakerDAO, which are administered by DAOs, allow for treasury administration and protocol development using blockchain-based smart contracts.

DAOs in which to invest are available. Take BitDAO, which, according to its website, invests in DeFi initiatives and presently has over $3 billion in assets in its treasury. PplPLEASR also founded PleasrDAO to purchase PplPLEASR’s Uniswap V3 NFT, which is another example. Many additional digital artworks have been bought since then, and in June, the organization was able to arrange a $3.5 million loan against some of its most valuable NFTs.

In an effort to encourage other DAOs to take on more social responsibility by supporting Universal Basic Income distribution, the GoodDollar DAO has been established. The December launch of GoodDollarV2 sets a new benchmark for the delivery of UBI payments. In order to provide a long-term source of crypto-based UBI, it uses yield farming and liquidity mining rewards to sustainably generate cash for the protocol itself.

It’s a project that’s expected to acquire traction as the concept of DAOs with specific goals based on a user’s identification and serving the greater good has already gained traction in the year 2021. As we approach 2022, we should expect to witness a rise in the number of decentralized autonomous organizations (DAOs). Read our guide about how to invest in crypto.