The Top 5 Crypto Trends for 2022

2021 has been a great year for cryptocurrencies in terms of global adoption as well as development. Things are looking great for the upcoming future too with digital assets being integral to Metaverse’s digital economy. Global banks, financial institutions, and even traditional legacy services are implementing crypto payment processors. Without further ado, let us delve into the top 5 crypto trends for 2022.

Crypto Trends for 2022

• DeFi will Increase Its Mainstream Prominence

Accelerated growth of DeFi and Decentralized Autonomous Organizations(DAO) will occur for several reasons. Decentralized finance options through blockchain facilitate transactions without the need for intermediaries. An increasing number of financial instruments are appearing within the shared ledger network with each passing day. The advantages include cost-cutting, process optimization, compatibility with upcoming technologies like Web 3.0 and the metaverse. DeFi market valuations had surpassed $200 billion in 2021, and estimates suggest the number will further increase in 2022.

Also Read: Game-Changing DeFi Trends for 2021

• Better Laws and Crypto Regulations

As BTC continues to be the dominant crypto asset for several years, Ethereum is catching up quickly, providing better scalable solutions using a different consensus mechanism. The global rise in cryptocurrency adoption will necessitate better laws and regulations in crypto trading.

China has completely banned cryptocurrencies. Meanwhile, the US regulatory body SEC had prohibited certain aspects of the crypto tokens while allowing future-based Bitcoin ETFs. Experts suggest that 2022 shall see stronger regulation laws coming into effect. The need for better regulation laws had been previously suggested by several leading proponents of the crypto community.

Also Read: SEC Nods to First US Futures-based Bitcoin ETF Launch

• Several Crypto-based Businesses will Go Public

A number of crypt-based companies were listed in 2021. The global increase in crypto adoption suggests many more crypto-based organizations will go public in 2022. A large number of crypto-powered businesses already exist. Examples include trading exchanges, crypto mining, remittance, and payment processors. The development of NFTs and the metaverse will further fuel the development of crypto businesses. 

• Non Fungible Tokens will go Mainstream

2021 was the breakout year for non-fungible tokens or NFTs. Celebrities around the world launched NFTs, allowing fans to acquire digital collectibles with digital authentication certificates. There is still room for improvement. The primary requirements at present for mainstream adoption of NFTs include the development of an accessible UI that even non-crypto users can comprehend. Another requirement is NFT implementation beyond digital wallets. Sports ticketing, exclusive seat lucky draws, loyalty points will attract the mainstream audience further into NFTs and subsequent crypto adoption. 

Also Read: The Crypto World Is Swarming With Celebrities Launching Their Own Non-fungible tokens (NFTs)

• Ethereum will undergo a software upgrade

At present both BTC and ETH deploy the PoW consensus mechanism for record verification within their blockchain networks. While secure, the process is energy-intensive and raises environmental concerns. The Ethereum network will migrate to the Proof of State mechanism which will rapidly alter the environment for ETH miners. PoS mechanism focuses on better energy efficiency, enhanced network capacity, easier entry points, and stronger resistance to centralization within the Ethereum blockchain. 

Final Words

2021 marked the first time a digital asset i.e. Bitcoin was accepted as a legal tender by a nation(El Salvador). While others may not grant crypto the same status, several nations have already legalized bitcoin. It is not long till countries recognize its significance as an important monetary tool. Meanwhile, global crypto adoption by notable financial institutions, along with new crypto innovations suggests 2022 will be another bright year for crypto as a whole.