5 CRYPTO TRENDS TO WATCH FOR IN 2022

2021 was a year of massive growth in the cryptocurrency industry. The price of Bitcoin rose by 70%, with a market capitalization of three trillion. Non-fungible tokens (NFTs) also became more accessible to mainstream artists and retailers. More rapid change is expected in 2022 as the crypto market matures. Read on for five crypto trends you should watch in 2022.

Bitcoin’s price is a widely accepted standard in the cryptocurrency market, making it the most prominent crypto globally. However, the price of Bitcoin has been consistently volatile in 2021, with a high performance of $60,000 in April. The price decreased to $30,000 in July. In August 2021, Bitcoin set a high price of around $70,000, which later dropped to $50,000 in November. Since the cryptocurrency market is not yet fully mature, the volatility in Bitcoin prices is expected to continue in 2022 and beyond.

Thanks to its unregulated nature and decentralized structure, cryptocurrency is thriving in the market. However, the crypto market lacks consumer protection and has weak anti-money laundering checks, exposing users to risks. As a result, governments and regulatory bodies will develop cryptocurrency compliance standards to regulate digital assets to improve retailers’ security and hamper hackers.

One of the top cryptocurrency trends you should watch out for in 2022 is the expansion of the NFT market. The non-fungible token uses smart contracts to help content creators and artists access decentralized funding options. This provides them with additional freedom to finance their creation. Since NFT is based on blockchain technology, it is pretty secure and helps artists authenticate ownership of their digital assets. This has increased the popularity of NFTs, and it is expected to realize an increase in valuation as more artists and creators seek to acquire control over their content in 2022.

2021 showed that payments giants no longer view cryptocurrency as a threat but an opportunity. For instance, Mastercard developed crypto support, Visa introduced a cryptocurrency advisory service, and WhatsApp started testing cryptocurrency payments through the Novi payment. 

Various state governments are embracing cryptocurrency payments too. Myanmar’s parallel government adopted Tether as its official currency, while EL Salvador claimed to save $400 million in western union charges through Bitcoin remittances. These events will likely gain momentum in 2022 as more institutions discover money can be transferred inexpensively and instantly.

Web 3.0 is the third version of the internet that allows individuals to find their sites without relying on corporations that own their servers. It also allows users to personalize the internet, take back control over their data, and eliminate the occurrence of a site crash due to a single point of failure. There is an increased acceptance of web 3.0, which will positively impact linked cryptocurrencies such as Ethereum, Helium, and Livepeer, to mention a few, in 2022.

The rapid changes in the crypto industry will impact the value of cryptocurrency in 2022. Familiarize yourself with the above cryptocurrency trends to discover more investment opportunities,