Although 2021 was highly volatile, it was a fruitful year for cryptocurrencies. And all the credit goes to retail and institutional investors.
Today, the crypto market has been capitalized from $800 billion on January 1 to $2.2 trillion, including some coins doing astronomically well in terms of price and uses. This increase has been distributed to the entire environment of cryptocurrency.
Moreover, being an alt season, Defi applications and non-fungible tokens are prospering continuously, thereby indicating more profits in the upcoming year.
With this, we are going to share some of the latest trends you definitely need to watch for in 2022.
Trends to Watch For in 2022
Continuous Volatility in Bitcoin Prices
By far, Bitcoin is the largest cryptocurrency in the world. Its price is a widely accepted standard in the crypto market. Bitcoin was consistently volatile during 2021.
It had an all-time high performance in April with $60,000, which later decreased to $30,000 in July.
It again set a high price of nearly $70,000 in November that then dropped down to its current level of below $50,000.
This volatility is expected to continue in 2022 and beyond since the crypto market is not fully mature yet.
It is also the sole reason why many asset managers advise caution and urge customers to only spend 5 percent of their wallets on digital currencies. Investors have to be prepared for the plunge as often as its soars.
Because of cryptocurrencies’ decentralized structure and unregulated nature, cryptocurrency is thriving in the market. However, there are a lot of investors who state that cryptocurrencies are open to regulations as long as the rules are transparently applied.
Regulatory bodies and governments are trying their hard to regulate digital assets in such a way that will not only hamper cybercriminals but also increase the security of retails.
Investors and entrepreneurs are hoping to have a more moderate approach stateside. For them, it could mean more transparency in taxation guidelines as well as the capability of incorporating crypto investments into retirement accounts.
Shifting Globally Towards Defi
Since Defi is in its developing phase, it still contains risks in completely adopting decentralized finance. You can face challenges of scalability, financial credibility, credit scoring, and so on.
However, we might witness some crucial changes in 2022. Investors can address this problem as Global Fintech companies have entered the market with some solutions.
This will lead to the massive adoption of Defi by banks, governments, Fintech companies, and many more. The demand for its token will increase, thereby becoming the highest growth area of crypto in 2022.
Blockchain in the Metaverse
With Facebook and Microsoft staking their claim in an online virtual world, Metaverse has become a hot topic these days. This term for first used by Neal Stephenson in the cult science fiction novel, Snow Crash.
This led crypto, NFTs, and other blockchain technology to become the crucial aspect of growing the metaverse further. It will increase ownership of identity, utility, and access to the environment will be at the crux of this virtual world.
This will enable like-minded individuals to form communities that will share experiences, develop parallel economics, and create content together.
Multiplication of Bitcoin ATMs
Since cryptocurrency is intangible, people find it arduous to trust it. However, with the installation of Bitcoin ATMs, people have started adopting it as a reality in several parts of the world. They can perceive these assets as palpable investment instruments.
There has also been an increase in the number of Bitcoin ATMs from 2015 to this year. It is allowing people to buy Bitcoin using either their credit or debit card, thereby making the currency highly alike for enthusiasts and beginners.
It will also eliminate the need for crypto brokers since people can effortlessly carry out the transactions. But, they can still wander somewhere else for better rates.
These trends are going to increase the value of cryptocurrency even more in 2022. With new regulations, different investment opportunities, better technologies, and top companies coming up with precise solutions, investors are very excited to trade in digital assets this year.
They are going to enjoy plenty of opportunities with the help of these trends.