In 2021, the crypto market is advancing by leaps and bounds driven by macroeconomic factors: Bitcoin and Ethereum have reached a record high together, and the total market capitalization of the crypto market has also approached the $3 trillion mark (the highest value is $2.9753 trillion). As the core components of the Metaverse concept, GameFi and NFT have successively become popular sectors leading the industry, widely favored by capital and attracting a large number of leading technology companies to deploy. As the infrastructure of the industry and the underlying network that carries the Metaverse and Web3.0, the public chain has made exciting progress in the past year. The launch of ETH2.0 and the emergence of the Layer2 sector are also worth looking forward to.
In 2022, the future trend of the market will become more complicated: Bitcoin first continued the downward trend that started in November last year, all the way down to around $33,000, a new low in the second half of the year, and then turned from weak to strong in late January and stood at 40,000 again. dollar mark. The market sentiment, which had already fallen into extreme panic, then eased sharply. However, the risks have not been fully released: the US inflation rate rose to 7%, a record of 39 years, and the recently released CPI data (7.5%) also hit a new high since 1982. Expectations of Fed rate hikes are like the sword of Damocles hanging over the market. This can’t help but worry: after the global monetary policy is tightened, how can the crypto market achieve its independence from the financial market?
This article will review the market development in 2021 and judge the industry development trend in the new year.
Trend 1: The accelerated expansion of the Metaverse
2021 is known as the “Year of the Metaverse”. In addition to the increasing maturity of technologies such as 5G and VR, and the entry of Internet giants such as Facebook, the development of NFT and GameFi also provides a powerful boost.
As the “secret key” to the Metaverse world, the cumulative transaction volume of the NFT market last year was 21.5 billion US dollars, an increase of more than 200 times month-on-month. And it has leapfrog development in terms of market value, number of users, and high-quality projects. The entry of leading companies in various fields such as Disney, Porsche, and Coca-Cola, as well as the icing on the cake of celebrities such as Curry, Jay Chou, and Musk, have made NFTs have a phenomenal out-of-the-circle effect.
After the start of 2022, the NFT market continued its previous growth momentum. According to Forkast, the number of independent NFT buyers surpassed 895,000 in January, a record high and a year-on-year increase of 3,000%. According to NFTScan data, the number of new NFT assets on the Ethereum network in the past 30 days exceeded 4.134 million.
GameFi has successfully taken over DeFi, driving the steady rise of on-chain data such as TVL. According to The Block data, the total value locked in the protocol (TVL) soared from $16.1 billion to $101.4 billion, and user data also hit a new high.
DappRadar data shows that a total of 1,334 game Dapps have been deployed online. Since July 2021, the data of chain games has grown rapidly. The number of players has increased from 80,000 in early April to 1.248 million in December, and the daily transaction volume has increased from about $500,000 in early April to an average of about $200 million. level, with the highest daily trading volume exceeding $850 million.
In 2021, the term Metaverse has almost become a non-negligible existence. In 2022, which has just begun, we will see a closer and more diverse integration of NFT, GameFi, and Web3.0, and provide more people with a pathway to understand and participate in the Metaverse.
At present, the total market value of the Metaverse sector of the crypto market is below the $30 billion mark, which has a great room for development compared to the total market value of 16.8 trillion in the traditional game industry and traditional Internet companies. If the Metaverse was just an imagination that was too far away from reality, then with the explosion of infrastructure, NFT and GameFi, the application scenarios of the Metaverse will be further expanded and cover all aspects of the traditional Internet. Production relations and other aspects affect the social process. The renaming of Facebook to “Meta” and the entry of Internet giants such as Google, Microsoft, Tencent, and ByteDance into the field seem to be just the beginning of the Metaverse becoming a market theme.
Trend 2: Web3.0 undertakes development
Web3.0 is the identity layer of the Internet. Users can have their own identity online and have absolute control over the degree of information disclosure, without the need to hand over the ownership of personal information because of the monopoly of social media networks. At the same time, Web3.0 based on blockchain technology can also allow users to enjoy the dividends brought by the ecological expansion of the platform without worrying about privacy and security issues. That is, the value generated by the user during the interaction will be attributed to the user rather than the developer. The essence of Web3.0 is the process of returning operational power to users. At that time, various decentralized Internet applications will be managed by users instead of developers.
At present, there is a lot of controversy about Web 3.0, and even Musk, who is extremely tolerant of the encryption industry, has doubts about its application scenarios and value. But it is undeniable that the traditional Internet has entered an obvious bottleneck. Web 3.0 is the key word for the transformation of the pattern, and it is also a good medicine to solve the pain points of the current Web 2.0. Although the application of the Web3.0 concept is relatively limited, it mainly focuses on storage, decentralized social networking, payment, domain names and other fields. But I believe that as more and more teams and companies join the development of Web 3.0, and more composable applications are integrated into Web 3.0, this vague concept at present will surely gain more mainstream of acceptance.
Trend 3: New Types of Collaborative Organizations — DAOs
The centralized autonomous organization DAO is a digital world organization form based on blockchain technology. It has the characteristics of information transparency, community autonomy, freedom and openness. It can be said that the flat organizational structure of DAO can integrate decentralized individual forces through smart contracts, so that group intelligence can be maximized, thereby avoiding bias and mistakes in central decision-making. At the same time, the structure and characteristics of DAO also give it more advantages in flexibility.
2021 is a year of rapid development of DAO, the ecology has begun to take shape, and it has shown unlimited potential as a new type of cooperation. According to statistics, as of January 2022, there are more than 4,200 DAO organizations in the industry, covering investment, application, and governance, covering development tools, services, social networking, creation, collection and other fields. The 183 DAOs counted by the DeepDao website have a capital scale of more than 9.6 billion US dollars. The cumulative number of organization members and token holders has reached 1.7 million, an increase of over 22.3% in the past month.
Among them, there is a phenomenon-level project such as ConstitutionDAO (PEOPLE), which has raised more than 11,600 ETH. But at the beginning of 2022, this record was broken by the raised amount of 17,400 ETH.
At present, DAO still has problems such as governance attacks due to loopholes in smart contracts, lack of control over fundraising, and random changes to fundraising rules. However, it is believed that with the further development of the DAO modular operating system and the improvement of various services, the DAO ecosystem will go further in terms of interoperability and composability, and thus continue to broaden its boundaries. Major organizations and institutions will also successively participate in this experiment in the paradigm shift of cooperative organizations.
Trend 4: The outbreak of the DEX derivatives track
Derivatives are one of the key elements of any mature financial system. Judging from the development of the traditional financial market, derivatives have been one of the main forces driving the entire financial industry since the 1970s. The volume of derivatives in the traditional financial field is 40 to 60 times that of the spot. In the crypto market, the trading market value of derivatives accounts for less than half of the entire digital asset market. In contrast, the development of derivatives still has huge room for imagination. In addition to the volume comparison, mature players and institutions in the market have also begun to try to use derivatives to avoid risks and gain more value capture. According to estimates, the current daily trading volume of DeFi derivatives is only equivalent to 1/6 of the DeFi spot trading volume and 1/100 of the CEX derivatives trading volume.
Although people are more inclined to operate in CEX for the consideration of interactive experience, depth and other aspects when trading derivatives. However, DeFi derivatives do not require decentralized features such as permission, and with the addition of a professional liquidity team, we have reason to expect a breakthrough in the market share of derivatives DEX.
Inheriting the past and linking the future, OKX Ventures’ summary and outlook
In order to promote the prosperity of the Crypto Ecosystem in the long term and help the development of high-quality projects, OKX Ventures has invested in over hundreds of projects, covering core tracks such as NFT, GameFi, DeFi, Layer2, and Web3.0, and participated in over 90% of the top projects. During ecological construction:
In terms of the public chain track: OKX Ventures has joined forces with popular public chains such as Solana, Near, Polygon, and Avax to establish an ecological fund to support its ecological projects, and has invested in highly potential DeFi projects such as Acala, Deversifi, Swivel, and Persistence.
OKX Ventures also focused on the Layer 2 sector, investing in projects dedicated to scaling solutions such as Arbitrum, zkSync 2.0, Connext, Aurora, and Metis.
In the NFT and GameFi sectors, OKX Ventures focuses on game platforms and trade unions, infrastructure, and high-quality projects. It has invested in YGG SEA, Blockchainspace, Big Time Studios, Relay, Dehorize, Godsunchained, Chain guardian, waxp, and efinity respectively. , metadojo and other projects with great potential, give sufficient funds and flow support.
In terms of Web3.0, OKX Ventures has invested in Pocket Network, Octopus, Joystream and other projects, and also showed confidence in the development of the next-generation Internet.
In 2022, OKX Ventures will continue to follow the trend of industrial development, continue to make efforts in high-potential fields such as Web3.0, Metaverse, DEX, DAO, etc., and work with partners to promote the development of the encryption ecosystem. We realize that the development speed of the industry has surpassed the imagination of most people. Faced with this change, all industry practitioners should be more fully prepared.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/2022-judgment-industry-development-and-trend-outlook/
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