Bitcoin dominance, Ethereum, Web 3.0, NFT, and gaming, moving from Layer 1 and Layer 2 to a multi-chain world.
Hello Crypto Community, At the start of 2021, crypto was at an $800 billion market cap and went to a higher value of $3 trillion in November 2021, before retracing back to $2T. If 2020 was the year of the bull, then 2021 was definitely the year crypto went mainstream.
Now let’s take a look at my predictions for 2022.
My thought process will revolve around Bitcoin dominance, Ethereum, Web 3.0, NFT, and gaming, moving from Layer 1 and Layer 2 to a multi-chain world, acceptance of crypto by institutions and corporate adoption, more regulations, and DAOs.
So let’s dive in:
1. Will Bitcoin’s dominance last, and will it be able to reach $100,000?
The graphic below compares CPI data from the United States with the United Kingdom over the last several years. The inflation genie appears to have escaped the bottle, and it appears that restoring normalcy will be difficult. Even if the Federal Reserve aims to raise interest rates, the current inflation rate in the United States is 6%, and I doubt it will return to normal very soon. This is fantastic news for Bitcoin in the long run, as institutions and hedge funds are already investing in the cryptocurrency, and BTC has a decent chance of reaching $100,000 by the end of 2022.
2) DeFi Dominance and ETH 2.0
Proof of work is the current consensus in ETH. Later this year, it is expected to switch to a proof-of-stake consensus process, which will be a major driver in ETH’s price reaching $10,000.
As you can see in the graph below, the number of ETH addresses continues to grow. As soon as ETH 2.0 is released, these addresses will be the first to receive staking rewards. In this field, there is a lot of movement in terms of institutional investment.
With ETH being deflationary, it’s only a matter of time before more ETH leaves the exchanges.
3. Developments in Web 3.0
Web3 is the third generation of online services, bringing together AI-based semantics, AR/VR-based immersive-ness, and blockchain-based decentralization to offer transparent, omnipresent, open, and socially responsible internet experiences. The evolution of Web 3.0 will continue.
However, I am really optimistic about the following initiatives in 2022:
1-Arweave
2-Ocean Protocol
3-Filecoin
4-Helium Network
5-Flux
6-GRT
This is how you can tell the difference between web versions 1.0, 2.0, and 3.0.
4)- Gaming, Metaverse, and NFTs
We’ve witnessed NFT’s sector gains of around 7986 percent outperform all other crypto sectors, and this trend will continue in 2022.
We’ve seen how insane 2021 was for both the metaverse and gaming. One million active gamers joined the Axie Infinity universe after its inception in August 2021, and it became a source of income for many. NFT, gaming, metaverse, and multi-metaverse integrating all blockchains will be a new trend in 2022, and this industry will continue to grow, according to my predictions.
5)- Multi-Chains
In 2021, the argument over which smart-contract-enabled blockchain ecosystem will win has slowed to a halt. We shall live in a multi-chain future, according to common thinking, in which multiple blockchains can exchange information and value.
Interoperability across multiple blockchain ecosystems is also being rigorously worked on through bridges and cross-chain protocols. Finally, Polkadot and the Cosmos Inter-Blockchain Communication Protocol (IBC) are attempting to build a Layer-0 network, which is a network of different blockchains that can communicate with one another.
So, these are the projects you should keep an eye on:-
1-Polkadot
2-Cosmos
3-Chainlink
4-Bico
6)-Adoption
Here is a list of all the public traded companies having Bitcoin in their Balance sheet:-
7)- A growing number of countries are adopting and acquiring Bitcoin.
The countries that own Bitcoin are shown below. In 2022, it will continue to rise. Mayor Francis Suarez of Miami wants to “transform Miami into a hotspot for crypto innovation” by investing 1% of the city’s treasury reserves in Bitcoin.
Eric Adams, the incoming mayor of New York, is devoted to making the city crypto-friendly. Imagine New York becoming one of the crypto industry’s hotspots. This will attract Wall Street to cryptocurrency, which will be a positive effect.
India may soon see its first Bitcoin and Ethereum futures ETF
Torus Kling Blockchain IFSC and Kling Trading India have signed an MoU with India INX; launch planned by the end of current fiscal, subject to IFSCA and other regulatory approvals.
8)-Decentralized Finance (DeFi)
One of the best main narratives of blockchain and Ethereum since 2019 has been the growth of decentralized finance.
Stablecoin
A cryptocurrency that tracks the price of any asset, usually currency. Algorithmic stablecoins maintain their price peg through a set of rules or software instead of an underlying asset.
like USDT, USDC, UST and etc they are all equal to one dollar
Staking
Stablecoin coin is a great way to stake them in dapps wallet and earn 30% to 50% APY this is a great way to save your funds and earn lots of returns there are lots of ways to earn passive income from defi,
if you know about more in DeFi so join me on my Patreon
I Follow Terra Luna when its price is just 0.78$ own is worth 80$ right now and also follow Solana when it's just 4.3$, Cosmo Rune, and many more.
Final notes:
This is my guess based on the available info and previous experience. I’d like to remind everyone that investing in crypto is extremely risky, so only invest what you’re willing to lose. Since 2020, I’ve been investing in crypto and expanding my portfolio based on the newest trends and forthcoming events. Always do your homework; we were all successful in 2021, therefore let’s do it again in 2022 ;)
Disclaimer
This content contains an opinion and is solely for informational reasons. It is not intended to be financial or investment advice. Seek investment/financial guidance from a properly licensed specialist. I have no affiliation with any of the companies whose coins are referenced in this article. Please always conduct thorough research prior to investing, as you are solely responsible for any capital-related decisions you make and the outcomes.
