The acceleration of digital transformation will mainly influence cryptocurrency trends in 2022. With established markets such as gaming adopting cryptocurrencies, coupled with the growing popularity of NFTs and the interest of central banks to make their own developments in this regard, in the year that has just begun, the financial world will witness how regular users will be inclined to use this type of currency. Jason Simon, an expert in cryptocurrency and FinTech, provides some trends that can be expected in 2022 for the crypto space.
This year, non-fungible tokens (NFT) made a lot of buzz, with some people even going so far as to sell real estate to buy Bitcoin (BTC). BTC and Ethereum made an incredible leap in terms of their acceptance by traditional entities. But what we will see in the coming year will be unparalleled. Over the next 12 months, cryptocurrencies will experience a much more profound expansion.
“It’s no secret to anyone that 2022 will be much bigger for this growing space that many people are embracing,” assures Simon. “Added to what we’ve already said are the birth of an official cryptocurrency, and that data-driven protocols are shaping up to take center stage in the year that just kicked off.”
The massification of NFTs will definitely be a trend coming in the next few months. Quite a lot has been said about NFTs during 2021, but this will not compare to what will happen in 2022. Many thought this would be a passing fad. Instead, they generated a whole new economy for the crypto space.
Little by little, you see more and more NFT marketplaces like Opensea and Mintable, gaming platforms like Axie Infinity, and art galleries like CryptoPunks. These platforms currently have a strong community of creators, merchants, and service providers.
Market analysts like Simon revealed that the different marketplaces traded more than $15 billion. That figure was reached thanks to secondary sales in different sectors such as gaming, PFP (profile pictures), sports, and collectibles.
In addition to this, central bank digital currencies could appear in 2022. Another trend to watch out for in 2022 is central bank digital currencies (CBDCs). These are digital versions of fiat currencies such as the dollar and their ultimate goal will be to replace cash. That is, among some of the main advantages of CBDCs is that they reduce the costs of issuing paper money.
In the same way, governments will be able to alleviate the burdens derived from the implementation of social aid plans. This will be very timely to restore economic fluidity to a world recovering from a pandemic.
“CBDCs are coming, of that there is no doubt, that yes, they will have to coexist with currencies like Bitcoin,” Simon points out. “Financial markets have room for both private and central bank-issued money. Which is a relatively new development, as the last time private money was issued was almost 100 years ago.”
The data-driven protocol is a fad that will be more than imminent this year. One of the factors that will accelerate the adoption of cryptocurrencies in 2022 is digital transformation. Last year, digitization helped citizens maintain a more or less normal life while the pandemic lasted.
As a result, the amount of data generated was monumental. Thus data-driven protocols were born, some of which were developed in open source. The main objective is to enable companies and individuals to exchange and monetize data and data-driven services.
Thus, in 2022, data-driven protocol projects such as The Graph and Ocean Protocol, will quickly become popular. For example, the Ocean protocol was developed on top of the Ethereum blockchain and uses “data tokens” to access data sets.
“Overall, 2022 is going to be massive in terms of developments and adoption. The ecosystem of NFTs, ETFs, DeFi, and Stablecoins is in store for next-level developments. Overall, the cryptocurrency market is likely to cast aside that veil of mystery surrounding it. Instead, we will see cryptocurrencies become universally adopted, even by central banks,” concludes Simon. Developers will start using blockchain technologies to organize the immense amount of data we have generated over the past 18 months.