2021 has passed. Looking back to 2021, we have witnessed a big bull market in the cryptocurrency market.
In the big bull market in 2021, many major industry events have occurred, such as the price of BTC rising to nearly 70,000 U.S. dollars, ETH breaking through 4,800 U.S. dollars, Internet giants buying BTC, BTC becoming national legal tender, Bitcoin futures ETF being passed, and the explosion of new public chains, Traditional mainstream brands have entered NFT one after another, Gamefi represented by Axie has changed the game industry and so on.
In the beginning of 2021, Golden Finance has made a 2021 forecast. Examining the forecast for 2021, we can see that we are honored to forecast most of the trends in the industry.
Also on the first day of 2022, the Golden Financial reporter will take you to look forward to the top ten trends in 2022.
1. 2022 or the last year of the epidemic
According to the latest data, Omicron soluble (omicron) strains have accounted for the absolute majority of the latest new crown infections in the United States and the United Kingdom. According to the latest report, the infection rate of Omicron is extremely high. Therefore, it is very likely that in the first quarter of 2022, most people in Europe and the United States will be infected with omicron to form herd immunity.
So 2022 is likely to be the last year of the epidemic . In the second half of 2022, various countries and industries will gradually return to normal life , including the cryptocurrency industry, of course. It is expected that the cryptocurrency industry activities will increase sharply in 2022, and exchanges between countries will become more frequent.
2. Federal Reserve Monetary Policy
On December 16, 2021, the Federal Reserve announced the December Monetary Policy Committee resolution statement, deciding to start Taper from January, and it is expected that the bond purchase project will end at the end of the first quarter. All members in the December dot matrix are expected to raise interest rates from 2022, and 12 of them believe that interest rates will be raised at least three times next year. But in fact, there is little room for the Fed to raise interest rates, because the scale of US Treasury bonds has exceeded US$290 trillion.
The US epidemic is likely to just end in the first quarter of 2022, and society has just returned to normal life, and the Fed may not be in a hurry to raise interest rates. As economic activities return to normal, the US CPI is expected to fall, and theFed may not have too much pressure to raise interest rates in the first half of the year . However, based on political considerations such as its own legitimacy, the Fed may raise interest rates symbolically in the second half of 2022 .There was also a variable when Biden changed the chairman of the Federal Reserve.
3. The bull market cycle is prolonged?
The 2017 bull market has shown that there is no causal relationship between the bull market and Fed rate hikes. And as cryptocurrency enters mainstream institutions and people, its market foundation is far different from before 2020.
As more and more high-net-worth individuals, institutions, and countries recognize the value of Bitcoin, the demand for BTC value storage continues to increase. It is expected that in 2022, other countries besides El Salvador will choose to use BTC as legal currency. Perhaps in 2022 You will also see that some countries use BTC as foreign exchange reserves.
As DeFi, NFT, Gamefi, Metaverse, etc. are accepted by mainstream institutions in the industry, cryptocurrencies other than BTC will find their own landing scenes. Therefore, although the increase of many tokens has been very large in 2021, thebull market cycle may not be the same as the four-year cycle of 2013 and 2017, and the bull market cycle will be extended .
One of the biggest achievements of the cryptocurrency industry in 2021 is the entry of the term web3 into the mainstream technology circle.
After more than 10 years of development, prototypes of web3 products such as wallets, financial services, DID, storage, and content platforms have gradually emerged. At the end of 2021 and early 2022, we can already imagine the future web3 Internet.
As more and more developers and users begin to accept the concept of web3. Just like the mobile Internet era, quite a few mainstream products in the vertical field of web2 (such as storage, computing, content distribution, social platforms, investment, etc.) may be worth redoing on web3 . Although we don’t know what its product form looks like.
5. NFT, Gamefi and Metaverse
In 2021, mainstream brands, big IPs, and KOLs have fully accepted NFT. In 2021, NFT is expected to continue to penetrate into the fashion, music, art and other industries. NFT is not only limited to the artwork and content industries, the future of real-world assets on the chain is also another major application area of NFT. There may be new applications or developments in NFT in 2022 .
Gamefi based on NFTs, tokens and public chains has disrupted the game industry in 2021, and some Gamefi revenues surpassed traditional games in 2021. Traditional 3A game manufacturers are expected to launch highly playable, highly exquisite, Play to Fun Gamefi products in 2022 .
On the basis of absorbing web3, NFT, Gamefi, DAO, etc., Metaverse prototype products may appear in 2022 .
6. ETH 2
DeFi, NFT, web3, and Gamefi are expected to welcome hundreds of millions of users into encryption products .Therefore, the scalability of ETH, the largest public chain of smart contracts, is worthy of attention.
ETH 2 sharding, merger and Rollup L2 are expected to make some progress in 2022, which is worthy of attention, including the migration of ETH miners’ computing power.
7. Public chain and cross-chain
2021 witnessed the outbreak of new L1 public chains such as Solana and Avalanche and side chains such as Polygon and Ronin. Facts have proved that the encryption industry has great demand for public chain infrastructure in the process of penetrating into other industries. You can build a public chain first, and then develop products on it; it can also be an explosive encryption product that triggers a public chain.
2022 may continue to witness the development of public chains (such as Polkadot, Cosmos, Nervos, etc.), and there may be new products or public chains that focus on specific uses such as games or social media.
And in the future, we may live in a multi-chain world, cross-chain bridge products across L1, L1-L2 will continue to develop, and the speed and availability of various bridges will see great progress. Perhaps similar to the Swap aggregator, an aggregation bridge will be born across the chain, bridging all bridges/chains.
8. Supervision: USD stablecoin and Bitcoin spot ETF
Of course, the big trend every year is indispensable for supervision. In terms of supervision, China and the West have parted ways. Although cryptocurrencies, especially BTC, were anti-regulatory when they were born, there are other cryptocurrencies that are the main application. Supervision will greatly expand the application population, and web2 developers and giants will also accelerate their entry into the encryption field.
The US dollar stable currency has greatly strengthened the dominance of the US dollar in the world. The United States is expected to strengthen the supervision of the US dollar stable currency in 2022 . As the U.S. encryption power further strengthens, perhaps the Bitcoin spot ETF will be approved by the U.S. SEC in 2022 .
9. Encrypted payment expansion
In 2021, encrypted payments will gradually come into people’s lives, such as Paypal, Squar, AMC, etc. Encrypted payment is expected to expand further in 2022, and mainstream service providers in all aspects of clothing, food, housing and transportation (e-commerce, air tickets, hotels, restaurants, car rentals, etc.) will accept encrypted payments.
Amazon reported accepting Bitcoin payments in 2021, although it was later denied. With the expansion of crypto users , Amazon, Microsoft, and Apple are likely to accept cryptocurrency payments in 2022, and mainstream social applications in various countries such as Facebook’s Whtapp, Telegram, Signal, Discord, and line will accept cryptocurrency payments in 2022.
10. DCEP and China
As a Chinese media, the last trend is left to China. The 2022 Beijing Winter Olympics is the right time for DCEP to internationalize .
China’s policy in 2021 completely eliminated cryptocurrency mining and trading. But in the past ten years, the land of China has sowed encryption fire. In 2022, Chinese traders and developers will not leave the crypto market completely. In 2022, we are ready to change, and we hope that China will not miss the web3 paradigm revolution.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ten-trends-outlook-of-the-encryption-industry-in-2022/
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