Blockchain data research firm Arcane Research looked at the year that was in its final report for 2021 and offered its forecast for crypto markets through 2022.
December 28 of the Arcane The weekly update The report focuses on Bitcoin (BTC) and Ethereum (ETH) but looks at other major coins, decentralized finance (DeFi), meme coins, non-fungible tokens (NFT), derivatives and others. Arcane offered a prediction of what would happen in 2022 on each topic covered in the report.
“Bitcoin will outperform the S&P 500 in 2022.”
The report noted that until 2021, Bitcoin has outperformed the S&P 500 Index. Bitcoin is up 73% while the S&P 500 is up 28% this year, and Arcane believes Bitcoin will continue this performance. next year. The S&P 500 benchmark is made up of the 500 largest companies listed on the US stock exchanges.
“XRP and Cardano will come out of the top 10”
Arcane noted the huge gains on Binance Coin (BNB) this year, peaking at around 1,600% in May and closing the year up 1344%. Based on this and the growth in market capitalization of alts like Solana and Terra, along with the NFT craze, analysts believe Ripple (XRP) and Cardano (ADA) will drop out of the Top 10 list. .
Alternative layers will continue to outperform ETH.
While ETH has outperformed BTC this year with a gain of 455% to 73%, other layer one blockchains have outperformed ETH. Layer one refers to the stand-alone base layer blockchains. Terra Luna ends 2021 up 14,823%, Fantom is up 13,549%.
Traditional game companies will add more and more NFTs
This year in crypto can be defined largely by the massive sales of NFT, and blockchain games like Splinterlands and Alien Worlds have around 526,000 active users per day according to DappRadar. Arcane predicts that by 2022, traditional gaming brands will diversify into the NFT space and capitalize on the booming market.
Even more crypto companies will go public and several will have valuations above $ 5 billion.
This year, Coinbase went public on April 14 and currently has a market cap of $ 72 billion. The top five public listings of crypto companies slated for 2022 are all currently valued at over $ 1 billion. Arcane believes there will be a number of others valued at over $ 5 billion, like the crypto exchange Bullish, which is currently valued at $ 9 billion.
Bitcoin ETFs To Hold Over 1 Million BTC By End Of 2022
Several Bitcoin futures exchange-traded funds (ETFs) were launched in 2021. They currently collectively hold around 846,309 BTC and Arcane says growth will only continue in 2022.
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“Hashrate will become even more geographically distributed”
When China banned Bitcoin mining, Bitcoin’s global hashrate fell sharply, then recovered almost as suddenly. The United States now leads the global hashrate rankings, followed by Kazakhstan and Russia. Arcane believes that the miners will scatter even more in regions like Latin America.