Top Crypto Trends To Look Forward To In 2022

Dec. 07, 2021 11:39 AM ET
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The crypto market is as vibrant as it has ever been. 2021 was a breakthrough year for the market, with traditional assets rising on the back of institutional crypto investments and adoption.

Even though prices have stalled a bit over the past few weeks, investors and market enthusiasts still remain optimistic about what the new year will bring. The crypto market is prone to grow trends, and some of these trends have started to make waves as the year winds down.

Investors with foresight are also considering the trends that could take the crypto market by storm in 2022. As we’ve seen several times, several interesting things are already happening and are poised to expand even further in 2022. Some of them include:

An expansion of crypto adoption

As with every year, there is no doubt that crypto adoption will grow in 2022. The market recorded several milestones this year, with El Salvador diving head-on into crypto by making Bitcoin legal tender. Since then, the country has run several initiatives with backing from the government, which is incredibly pro-Bitcoin.

Currently, the government of El Salvador is looking to build a Bitcoin City. The government has been buying up more Bitcoin, taking advantage of the current dips in the market to stock up its reserves and prepare for massive gains once Bitcoin’s price jumps in the future.

For 2022, there is a high chance that other countries follow suit. Companies could also ramp up Bitcoin adoption, following in the footsteps of names like Tesla and MicroStrategy to add Bitcoin to their reserves. This will only grow the profile of cryptocurrencies even more, cementing them as true alternative assets - like gold, precious metals, and many more.

At the end of the day, increases in adoption will help the market. People who have been sceptical about crypto will have more reasons to invest in the market, especially when they see the benefits of digital assets for economies and countries.

Entering into the metaverse

The metaverse is the new frontier for entertainment. While no one especially knows what the metaverse will be or how it will operate, different companies have come out with their iterations of it.

Facebook changed its name to “Meta” in October as it was looking to capture the metaverse and become the pioneer for this brave new world. Other brands have since moved into the space as they also want to try their hand and see the benefits that a metaverse-based world will bring.

It is beyond certain that crypto projects will look to capitalize on this as well. Whether it is traditional crypto companies or exciting new projects like Decentraland and co, there is a lot of potentials to look forward to. Projects can build in the metaverse and incorporate projects like non-fungible tokens (NFTs) and much more.

The metaverse itself won’t be ready in 2022. But, companies can move into it nonetheless to see the benefits that it could bring. For crypto, it is more of a no-brainer.

The dawn of GameFi

GameFi is set to be the next big crypto trend - following in the line of decentralized finance (DeFi), NFTs, and much more. It is the evolution of gaming, with gaming platforms switching to the play-to-earn model.

Over the past few years, it has become more obvious that gamers don’t just want to sit at home and play games - they also want to earn money and make a living. In more ways than one, GameFi enables this.

GameFi platforms allow their users to play games and earn rewards as they complete tasks. These rewards can be avatars, new weapons, features, and other rewards. Most of these rewards are in the form of NFTs, which can then be sold on marketplaces and in-house. So, the players earn money as they level up in the game.

Several games already employ the GameFi model. There is the Axes Metaverse, which operates as a battle royale game. Developed by Azur Games, Axes Metaverse allows players to earn NFTs as they battle in a dedicated metaverse.

In 2022, more games should adopt this model and incentivize their players even more. Everyone loves the opportunity to play games and earn money, so it’s a win-win.

Abounding investment opportunities

So far, most people who want to make investments in cryptocurrencies have had to buy units of these assets entirely - through exchanges, crypto brokers, trading platforms, and many more. However, this simple investment strategy isn’t quite enough.

Last year saw a massive influx of institutional investors in the crypto market. Companies swooped into the market to buy up massive units of cryptocurrencies, but some sophisticated investors want more than just to invest in cryptocurrencies outrightly. The market is incredibly volatile, and institutions would prefer to protect themselves even while investing in crypto.

Offering that right mix of safety and returns is what exchange-traded funds (OTC:ETFS) can help to do. At the same time, they help to offer a brand new way for investors to get into the market and enjoy their gains.

So far, ETF applications have barely gotten anything positive. Several companies have applied to list crypto ETFs, but the Securities and Exchange Commission (SEC) has stalled them all. However, some progress was made in October when the SEC allowed ProShares and other companies to launch ETFs backed by Bitcoin futures.

While the futures ETFs have been great, the industry especially needs ETFs that are linked directly to the changes in Bitcoin’s prices. There is little probability that the agency will approve an ETF this year, so the battle will continue in 2022.

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