Crypto Trends that you might find useful to look out for
The cryptocurrency markets had a wild year in 2018, with strong spring rallies taking some values to all-time highs before crashing in May and trying to recover during the summer. Bitcoin hit a record high in November but fell in December, surprising expectations of further rises. As new applications and services allowed crypto users to borrow and earn interest using their currencies, decentralised finance (DeFi) took momentum in 2021. Other notable NFT sales include high-profile sales of digital art collections via online marketplaces and traditional auction houses.
It exceeded $3 trillion in November, when bitcoin and ether soared, then fell back to $2.5 trillion in December. Cryptocurrencies are still worth a fraction of gold, equities, and government bonds. The high volatility of cryptocurrency values makes forecasting difficult, but there are evident patterns that will influence adoption and hence pricing. In 2022, these significant new crypto trends may dominate the cryptocurrency markets.
Multi-chain scaling will promote NFT adoption. Most blockchains are autonomous networks with unique goals. But as blockchain usage rises, interoperability across chains is required. Projects like Matic/Polygon, Polkadot, and Cosmos are focusing on methods for various chains to communicate. This feature allows users to move objects between chains. Due to excessive transaction costs on the Ethereum blockchain, certain apps and NFT developers are moving to Solana and Avalanche. In spite of this, Ethereum is poised to remain the dominating platform for smart contracts.
Earn-to-play crypto gaming
Axie Infinity’s AXS and SLP tokens, Sandbox’s SAND, and Illuvium’s ILV token all soared in value in 2021 as their developers sought to build liquidity. These games allow players to earn cryptocurrency tokens for their gameplay that can be exchanged for fiat dollars. In 2021, games like Alien Worlds, Axie Infinity, Sandbox, and Splinterlands were popular, while in 2022, Illuvium, MicroPets, and Star Atlas will be. As the number of players increases, so will demand for the tokens used to purchase, trade, and earn NFT characters, boosting exchange values. The 2022 metaverse buildout is also expected to boost in-game metaverse appeal.
NFTs and asset tokenization
In 2021, digital art collections like CryptoPunks and Bored Ape Yacht Club were desirable commodities, with values skyrocketing. Pak’s Merge Collection sold for approximately $91 million in just 48 hours on the Nifty Gateway NFT marketplace in early December. With airdrops and extra token sales, among the most popular NFT collections are allowing users to upgrade their artworks and build communities around them. Some NFT collections have soared in value on secondary resale markets, making them attractive to investors wanting to benefit from future sales. NFTs might potentially be used to tokenize actual assets like real estate or artwork for sale, acquisition, or loan collateral.
Blockchain in financial services
To conduct financial transactions, DeFi is one of the first decentralised apps to take off. Transborder payment providers, particularly in poor nations, began shifting to blockchain platforms in 2021, and this trend is expected to accelerate in 2022.