In 2021, there will be many landmark events in the crypto market: a breakthrough in the mainstream acceptance of Bitcoin, listed companies such as Tesla and MicroStrategy have successively purchased Bitcoin, the world’s first Bitcoin spot ETF has been approved in Canada, The SEC also approved the first bitcoin futures ETF, and El Salvador announced bitcoin as legal tender. Stimulated by many positive factors, Bitcoin continuously broke new highs and stood on the $60,000 mark for the first time. As the leader of the public chain, Ethereum started the 2.0 journey and gradually entered the era of deflation while gradually transforming to POS. Under the leadership of the two leaders, the public chain, DeFi, Meme, GameFi, NFT and other sectors have exploded one after another, jointly pushing the crypto market value to break through the $3 trillion mark.
However, in the transitional period from late 2021 to early 2022, people began to be cautious about the market outlook : on the one hand, key indicators such as the U.S. inflation rate and CPI have set new multi-year records, and expectations of interest rate hikes have risen globally. Once the monetary policy is tightened, the flood waters since the epidemic will end, and the financial market is bound to suffer a setback. On the other hand, since November last year, Bitcoin has fallen into a stalemate of weak adjustment after a continuous decline, and the maximum retracement of the high point has exceeded 50%. This trend, combined with the previous halving cycle, will inevitably make people worry.
However, compared with 2017, today’s encryption market has made great progress, and a simple analysis based on pictures seems out of date. First of all, after nearly two years of vigorous development, the encrypted ecology has become increasingly diversified and sound, and there is a possibility of decoupling between independent sectors and the overall trend of the market. That is to say: when the overall market is in a stage of sluggish downturn or disorderly shock, it does not prevent the sectors that have made breakthroughs in the underlying facilities or applications from going out of the independent market; secondly, with the entry of a large number of institutions, the liquidity of the encrypted market today is , anti-risk ability, and infrastructure construction, etc., have been greatly improved. This provides more solid support for the market.
This means that this year’s crypto market will still achieve partial prosperity in continued development, and certain investment opportunities will emerge. So finding out the strong sectors of the industry this year, or the potential track, becomes the key. In this regard, OKX Ventures gives an answer for reference in its annual investment report.
1. The Metaverse continues to expand, conquering the traditional Internet
Metaverse, from the 1992 American science fiction novel “Avalanche”, refers to the virtual space that maps the real world, including the physical world and the virtual world and the integration with the virtual economy. In the middle of 2021, the concept of the Metaverse has gained unprecedented attention and is among the buzzwords of the year.
There are three main reasons for the explosion of the Metaverse:
First, 5G, VR, artificial intelligence, big data and other technologies have achieved breakthroughs, laying a good underlying foundation for the landing of the Metaverse.
Second, NFT and GameFi have exploded one after another, and they have developed significantly in terms of transaction volume, number of users, capital volume, paradigm innovation, and the number of leading projects.The perfect combination of NFT and fast-moving consumer goods, entertainment, sports, games, film and television IP and other fields has also accelerated the emergence of the NFT concept.
Third, on March 10, 2021, Roblox was listed on the New York Stock Exchange, becoming the first stock of the Metaverse concept. Since then, traditional technology giants such as Microsoft, chip giant Nvidia, and Facebook have also entered the Metaverse, undoubtedly increasing the value support and traffic entry of the entire sector.
OKX Ventures believes that: the current total market value of the Metaverse sector in the crypto market is below the $30 billion mark, which has great room for development compared to the 16.8 trillion total market value of 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.
Judging from the data performance after the start of 2022, it seems to confirm OKX Ventures’ point of view: the number of independent NFT buyers exceeded 895,000 in January, a record high and a year-on-year increase of 3,000%. NFTScan data shows that the number of new NFT assets on the Ethereum network in the past 30 days has exceeded 4.134 million.According to larvalabs data, CryptoPunk 5822 was sold at a price of 8,000 ETH, or about $23.7 million, setting a new record for the highest transaction price of the CryptoPunk series of NFTs. The growth of various data in the NFT market has provided strong support for the resurgence of the Metaverse in the later stage.
2. Web3.0, the emergence of the next generation Internet
Web3.0 is a concept created based on the existing Internet and represents the next stage of the Internet. Compared with Web2.0, it has the characteristics of openness and decentralization, emphasizing that users have greater control over personal information and identity. That is to say: in the future Web3.0, users can have their own digital identity online and have absolute control over the degree of information disclosure. Thereby breaking the information monopoly of Internet giants. 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, as well as the value generated during the interaction process. The essence of Web3.0 is the process of returning operational power to users.
At present, Web3.0 is very controversial: on the one hand, a group of bigwigs led by Musk questioned Web3.0, believing that this concept is just a pseudo-demand lacking application scenarios. On the other hand, after the development of Web 3.0, it has formed a certain prototype, such as the content platform Mirror, the storage sector Filecoin, the main payment MetaMask, the social platform Discord, and the domain name system ENS.
OKX Ventures said in the report: “The traditional Internet has entered an obvious bottleneck. Web3.0 is the key word for pattern change, and it is also a good medicine to solve the current pain points of Web2.0. Although the application of the concept of Web3.0 is relatively limited, It mainly focuses on storage, decentralized social networking, payment, domain name, etc. 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 current view The concept that is still relatively vague will definitely gain more mainstream acceptance.”
JayHao, CEO of Ouyi, also said: Metaverse is a transit station for Web3.0, which allows users to perceive Web3.0 in advance, creating convenience for the destination of Web3.0. It is believed that as the concept of the Metaverse continues to heat up, more landing applications can emerge in Web 3.0.
Recently, YouTube, a video platform owned by Google, announced that it is entering the NFT and Metaverse based on Web3.0 and blockchain technology. It wants to connect artists with their audiences on a “deeper level” and explore the application of the latest technologies such as Web 3.0, so that creators, audiences and advertising partners can benefit the most. The monopoly giants of the traditional Internet continue to deploy Web3.0, which is enough to explain the problem.
3. Decentralized Autonomous Experiment, DAO
With the rise of the Metaverse and the concept of Web 3.0, the decentralized organization DAO has become a very important topic. DAO is a digital world organization based on blockchain technology, a flatter organization with common goals and values. It can be said that DAO, which has the characteristics of information transparency, community autonomy, freedom and openness, is a new type of cooperative organization that is more in line with the concept of Web 3.0.
2021 is a year of rapid development for DAOs. Especially in the last two months, Constitution DAO (PEOPLE) set off a wave of paradigm shift in organizational form, raising more than 11,600 ETH, allowing more people to feel the charm and infinite possibilities of DAO. A large number of imitators also emerged, such as AssangeDAO (JUSTICE), which raised a record-breaking 17,400 ETH.
According to the OKX Ventures report , as of January 2022, there are more than 4,200 DAO organizations in the industry, covering three major directions of 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.
It is undeniable that DAO still has problems such as governance attacks due to loopholes in smart contracts, and some DAO organizations that are not worthy of the name have overdrawn the trust of participants. However, OKX Ventures believes 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.
4. Decentralized Derivatives Track
Derivatives are one of the key elements of any mature financial system, an economic contractual relationship based on highly developed social credit. As a relatively high-level financial tool, derivatives can allow investors to carry out arbitrage, hedging and other operations, so as to better execute trading strategies and deal with complex and volatile markets. At present, the decentralized derivatives platform is still in the early stage of development, and there are problems such as high interaction threshold and relatively insufficient transaction depth.
OKX Ventures stated in the report: Derivatives have always been one of the main forces driving the advancement of the entire financial industry. The volume of derivatives in the traditional financial field is 40 to 60 times that of the spot, while in the crypto market, the trading market value of derivatives is It also 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. With the decentralized features of DeFi derivatives without permission and the addition of professional liquidity teams, we can expect a breakthrough in the market share of derivatives DEX.
According to recent media reports: Andre Cronje (founder of YFI) said: With the launch of solidly dex, two new products will continue to be launched: one of them is Levzu, an on-chain leveraged spot perpetual contract, creating any long/short combination, paying Margin for any asset, showing dynamic real-time funding rates. The active layout of many development teams and the continuous launch of innovative new products seem to be evidence of OKX Ventures’ judgment.
The crypto market in 2022 will be a complex and promising year. On the one hand, macro factors such as monetary policy and the international situation will further affect the direction of the entire market. On the other hand, the incomparable market depth and Dapp ecology also provide sufficient support for the subsequent strengthening of the market, and high-potential tracks such as Metaverse, Web3.0, decentralized derivatives, and DAO will also Breed more opportunities. A new year, a new beginning, looking forward to the continued prosperity of the encryption ecosystem.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/okx-ventures-where-are-the-potential-stocks-for-industry-development-in-2022/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.