It is no news that 2022 was a roller-coaster of emotions for crypto traders and investors. While it initially seems to be an altcoin year, it was short-lived with massive correction along the line before steady adjustments. However, we all have institutional and retail investors to thank. The once small crypto community is now swiftly becoming elaborate, with several investors realizing that cryptocurrency is the future of the financial sector. According to various speculations from crypto enthusiasts worldwide, cryptocurrency investment by 2030 would have tripled its current market cap.
After a seemingly successful 2021, will the crypto trend become more bullish or bearish in 2022? Here are some of the crypto trends you should have at the back of your mind before investing in any cryptocurrency in 2022.
New technologies in 2022
We all know technology is not a one-off revolutionist. The evolution of technology has never been known to be stagnant or old. There’s always something new coming along the line, so there’s another upgrade coming soonest for every innovation. The future of cryptocurrency depends on the level of technological advancements hitting the cryptocurrency community. From the looks of roadmaps released by several crypto founders, 2022 looks like a very promising year with several top cryptocurrencies implementing upgrades in their networks. It’s not the first time hearing particular crypto was promoted due to new technology or innovation built on its blockchain. The squid game meme coin is a perfect example of how technological advancements and innovative ideas could drive up the price or growth of any crypto in less than hours.
The issue of regulation in the crypto community has been in play for a long time, and to date,a lot has been done regarding crypto regulation. However, it is worthy to note that 2022 will be a lot more different with regulations being more stringent. China banning all crypto-related transactions last year was just an eye-opener to what could happen if crypto regulations aren’t followed. One of the most advanced ecosystems in the crypto community is DeFi, and most crypto regulators have been scrutinizing every of the DeFi protocols activities. The main reason behind this regulation of the crypto community is to reduce the price volatility in the crypto market. Hence, it’s advisable that you understand what crypto to invest in and why you shouldn’t invest in some cryptos. These regulations could make or mar a particular project, depending on the community and how strong the project’s fundamentals are. With this being the case, the issue of massive sell-off would reduce, and there would be a reduction in the usage of crypto for financing financial atrocities.
A general tilt to DeFi
If you are asking what crypto to invest in this year, you might want to consider the DeFi ecosystem. It is no news that DeFi is one of the most lucrative ecosystems in the entire crypto communities, and the reason is because of the number of opportunities piled up in decentralized finance. With DeFi, you could invest your crypto in working for you by merely participating in staking or yield farming. Although there are lost more you could achieve on DeFi; you could also be a liquidity provider on DEXs where you crowdfund your assets to receive rewards proportional to the amount locked in the liquidity pool. The DeFi ecosystem has almost every network looking forward to incorporating it on their blockchains. Recently, Cardano announced the possibilities of smart contracts and DeFi protocols on its network. The Vechain network, on the other hand, is also looking forward to establishing a DeFi application protocol on its blockchain, making DeFi applicable to every network with smart contract compatibility. However, Ethereum remains the main umbrella under which DeFi resides.
Introduction GameFi, Metaverse, and NFT trends
2022 is seeing a lot of activities, not in the already established networks like bitcoin or Ethereum but the innovations like GameFi, NFT, and the metaverse as a whole. The introduction of the metaverse is the exact game-changer that reunites the importance of DeFi to Ethereum and all other smart contract networks. NFTs are non-fungible tokens that could be audio, graphics, or other media formats. The massive increase in GameFi is due to the rewards attributed to every win recorded with rewards, such as in NFTs, the crypto community is about to be ruled by gamers and NFT adopters. These massive adoptions are what the crypto community needs to move uptrend in 2022. You should probably invest now, when the prices are still very pocket-friendly.