If you read the first part of this piece and wonder why there is a second, trends and events usually drive the crypto market. So, crypto users, developers, and investors like you always want to be aware of these upcoming trends to position themselves correctly.
Since the new year is an ideal time for people to make significant decisions or moves in the market, being equipped with the proper knowledge helps them stay profitable. Therefore, we urge you to sit back and discover more of the major trends, events, predictions, and projects that will likely happen within the year so that you can do exploits!
Without much further ado, let’s get down to business.
More DAOs Adoption
The crypto space will likely see the introduction of more decentralized autonomous organizations (DAOs) to address upcoming governance issues at DeFi organizations.
DeFi organizations’ decision-making, or governance, is frequently decentralized (from the fees they charge users to their product offerings). In the early stages of DeFi, a single person or a small group of people may be driving a decentralized application.
However, as the DeFi project gains traction, they frequently seek to step back, handing control over to the community that uses it. This transition is expected to take the form of a decentralized autonomous organization (DAO) in the future. Their rules and regulations are embedded in smart contracts, and they may issue governance tokens, which give coin holders the power to partake in decision-making processes.
Play-to-Earn Crypto Gaming Will Skyrocket
Blockchain gaming burst onto the scene in 2021, with Axie Infinity (AXS) being the first to introduce the concept of play-to-earn games. This, along with improved graphics and gameplay, increased demand for crypto games. Play-to-earn games allow players to earn in-game tokens and NFTs, which they can then exchange for cash on a cryptocurrency exchange.
While Alien Worlds, Axie Infinity, Sandbox, and Splinterlands became popular in 2021, Illuvium, MicroPets, and Star Atlas are scheduled for release in 2022. As the number of players for these games grows, the demand for the tokens used to buy, sell and earn NFT characters grows, supporting exchange prices. Also, the growth of the metaverse in 2022 is expected to boost the popularity of the in-game metaverse.
The Rise of Fourth Generation Blockchains
The blockchain as we know it has evolved in four stages. As exemplified by Bitcoin, we saw the rise of distributed ledgers and enforced digital scarcity in first-generation blockchains.
The concept of smart contracts was introduced in the second generation of blockchain, which was led by automation and the development of trusted code platforms such as Ethereum and Hyperledger. This enabled the digital tokenization of physical assets.
Around the same time, the technology was subjected to initial scrutiny and concerns about scalability, transaction speed, and network efficiency.
The creation of new third and fourth-generation solutions seeks to overcome speed and scalability issues. Third-generation blockchain platforms such as Aion, Cardano, and EOS introduced technology such as sharding to address scaling issues to reduce transaction costs and improve speed. These platforms also advanced blockchain’s distributed application capabilities.
Fourth-generation blockchains are being developed to address prior challenges and enable trust in simple ways, thereby accelerating business network formation, operation, and reconfiguration. In addition to facilitating onboarding, these low-cost, highly scalable platforms are designed to make pragmatic trade-offs, such as recognizing that not all transactions are created equal and employing variable consensus mechanisms.
Interesting fourth-generation blockchain platforms, such as Insolar and Aergo, are making business networks easier to use by hiding the complexity of the underlying blockchain technology through business-oriented interfaces.
Bitcoin to Challenge The Market Cap Of World’s Largest Stocks
As things currently stand, Bitcoin appears poised to challenge the world’s largest stocks by market capitalization, which include Apple ($2.83 trillion), Microsoft ($2.44 trillion), and Google’s holding company, Alphabet ($1.92 trillion). Compared to the world’s largest corporations, Bitcoin ranks seventh in market capitalization, trailing after Tesla ($0.93 trillion).
Bitcoin has amassed a market capitalization of this magnitude in just ten years. If its value increases by another 200 percent, it will be worth far more than Apple’s current valuation.
Although that may appear to be a long shot, it is worthy to note that Bitcoin has grown at a compound annual rate of about 200 percent over the last decade. While Bitcoin may not see that kind of growth in the short term, many Bitcoin maximalists believe it will eventually surpass gold (market value around $11 trillion), dwarfing companies like Apple and Microsoft.
The Increased Emergence, Demand and Adoption of Blockchain-as-a-Service (BaaS) Solutions
Because of the many developments in the blockchain environment, BaaS has emerged as a way to boost blockchain adoption in the business world.
Blockchain-as-a-Service (BaaS) is a third-party company that creates and manages cloud-based networks for companies in the business of creating blockchain applications.
BaaS enables its clients to leverage cloud-based solutions to build hosts and enable them to operate related functions on the blockchain and their applications. They can do this without worrying about overcoming technical difficulties or incurring operational overhead. As a result, they need not invest in additional infrastructure developments or bother about lack of skills.
BaaS providers enable clients to concentrate solely on their core business and blockchain functions. BaaS demand is steadily increasing and will continue in 2022. Microsoft, Amazon, and R3 are major players in this space.
More Crypto and Challenger Banks Will Surface
In the coming years, we are likely to see an increase in the number of challenger and crypto banks aimed at meeting the needs of millennials and Gen Z.
Both Gen Z and millennials are increasingly interested in new methods of managing money. This has resulted in the emergence of challenger banks that completely digitize finance and this trend is sure to hasten the arrival of crypto banks.
2021 saw an increase in the integration of blockchain with other technologies such as Big Data and Artificial Intelligence, among others. Corporations are also becoming more interested in using blockchain for IoT (internet of things) applications.
IoT is essentially a platform that connects embedded devices to the internet to collect and exchange data with one another. It enables devices to interact, collaborate, and learn from one another’s experiences, similar to humans.
The IoT market is rapidly expanding, and this trend is expected to accelerate in 2022 due to the recent adoption of the 5G network. However, the 5G IoT market currently faces limitations caused by the incredibly fragmented IoT ecosystem.
Blockchain technology seems the most appropriate and efficient solution to the numerous 5G IoT challenges. The automated encrypted and immutable nature of blockchain can help solve many problems related to security and scalability. More pilot projects and initial use cases in this field are expected to be announced in 2022.
It is worth noting that these trends are founded on several premises. However, if these forecasts come true, 2022 will be a fantastic year for blockchain and the crypto industry. As we begin this year, one thing is sure: whatever happens next will be history in the making—and fascinating to witness and document.
But before making any investment decision, we recommend conducting your own research bearing in mind the most recent market news, technical and fundamental analysis of the crypto market, and expert opinion. Furthermore, never invest more than you can afford to lose. And we hope to see you make more profits in 2022!