The past year has brought many major changes to the rapidly developing world of crypto. As global adoption has increased and some countries have adopted crypto as legal tender, others have implemented bans and regulations. BeInCrypto has spoken to some space experts about their predictions on what 2022 will hold in crypto.
According to Chainalysis, the global cryptocurrency adoption rate jumped over 880% last year. Bitcoin and Ethereum have both reached new all-time highs. The former surpassed $ 69,000 as fears of fiat inflation intensified. Additionally, El Salvador became the first country to adopt Bitcoin as legal tender.
One of the biggest uproars this year has come with the emergence of non-fungible tokens in the general public. These digital assets have changed the way many recognize authenticity and the way many interact with communities (DAO). In fact, NFTs have particularly disrupted the sports and music industries. They revolutionized the way stars and brands can control their own monetization.
Of course, alongside these monumental, crypto-forward developments, 2021 has had some worrying moments in space as well. Earlier this year, China imposed its toughest bans to date on cryptocurrencies and their mining. Additionally, there were many fears in the crypto community about looming regulations from global lawmakers, including the United States.
However, building on these revolutionary moments leaves the future of the space very bright. BeInCrypto spoke with space experts about their forecast for decentralized finance in 2022.
Investment and adoption
The past year has been monumental for new investments in the crypto community. Both individuals and institutional investors have created a bullish atmosphere of excitement and demand.
As mentioned earlier, it is not just people and institutions that invest in space, but entire countries. El Salvador has made it clear that Bitcoin is not just a fad. Rather, it is something that can be used at the national level. Industry experts Marco De Rossi, co-founder of HAL.xyz and founder of WeSchool, a leading Italian company in the field of EdTech, and Jori Armbruster, CEO of Ethichub, see this continuing in 2022.
De Rossi said: “When it comes to financial primitives, I think we have 2 major dynamics that investors should care about: In a post-Covid financial environment, central banks continue to print money and Sovereign states are implementing solid stimulus investment plans The fund is 800 billion euros, the United States is investing trillions). This is pushing inflation and private investment: In 2022, with bond yields close to zero, DeFi yields will remain an El Dorado, along with any STEM-related equity market. Institutional giants will continue to invest mainly indirectly, so more and more mixed players (crypto asset funds, crypto-indexed derivatives, custodians) will emerge to enable this.
Armbruster commented that next year will bring more DeFi connections and investors, especially after the example of El Salvador. “2022 will also be the year when DeFi connects to the real world economy. El Salvador’s success in adopting Bitcoin will create a ripple effect for other countries to adopt Bitcoin and / or perhaps other cryptocurrencies as legal tender.
Additionally, he said the demand for decentralized cross-chain solutions will increase. “At the same time, the multi-channel reality will be consolidated in 2021 and will require more decentralized inter-channel alternatives. This is why cross-chain solutions will be one of the hottest trends in 2022. ”
Along with the many triumphs of the decentralized space in 2021, there have been great moments of uncertainty. It came with the pending prospect of crypto regulations.
Johannes Schweifer, CEO of Crypto Valley’s CoreLedger, believes this year will bring much-needed clarity to the space.
“2022 will certainly see further clarification of national regulatory frameworks, for better or for worse. At this point, the crypto and blockchain phenomenon can no longer be ignored. Countries are forced to support or remove technology. While large countries like China have already made their position clear, small countries and developing regions have a lucrative window of opportunity to attract international businesses and move their economies towards a digital future.
Additionally, that clarity will not only come from regulations, but from use cases across various conflicting industries.
“Supply chain disruptions and environmental issues were constant topics in 2021 and opened up new conversations in the blockchain space. The case for blockchain-based logistics solutions and local manufacturing became even clearer as the global supply chain was stretched to breaking point by shortages and delays.
Gunnar Jaerv, co-founder and COO of First Digital Trust (FDT), believes this year will include more cooperation. The two crypto leaders alongside major regulators will need to come together for clarity that serves all parties.
“In 2022, we will see more crypto founders and leaders sit down at the regulator table to establish clearer regulatory roadmaps, which is crucial to accelerate the industry. More governments will recognize that flexibility and collaboration bring greater financial benefits to local economies. Either in the form of taxes or employment opportunities for citizens of the industry.
However, there cannot be clarity and increased investment and adoption without promoting crypto education. De Rossi reiterated the need for more crypto-related EdTech projects to close this gap.
“There is also a strong skills mismatch between the demand and supply of talent in the space. How can we train millions of people in a short period of time on the basics of the crypto space? To solve this problem, many EdTech crypto projects will thrive in 2022. “
Additionally, Hisham Khan, Founder and CEO of Aldrin, commented on the power of NFT / Metaverse developments to educate and spark interest in the space.
“What is exciting for most investors varies, but we cannot deny the power of NFT / Metaverse based projects to bring in new users who are not financially savvy. There are people who will be excited about each of these different sectors; for example, NFTs would appeal to someone who loves art. As we have been building financial products over the past few years and this has found its use case with a lot of people, it looks like NFTs have really started to grab the attention of the most everyday people and the average person. , as it is something that they can relate to more. We will see a trend in which DeFi will be mainly adopted by institutions and NFTs by retail investors until a DeFi project can fully integrate into everyday life.
There is one thing that is certain, 2021 has shown the general public that crypto is here to stay. In addition, he showed the power of decentralized solutions in a world that is still digitized and monitored. As 2022 has just started, the year ahead for crypto looks bright.
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