The crypto sector had its ups and downs in 2021, but it was a landmark year overall, with the market cap of the entire crypto market increasing to over $3 trillion. Bitcoin gained 70%, a trend that was also visible in the value of major coins like Ethereum and a slew of altcoin newbies, some of which witnessed hundreds of percent rises.
In 2021, other noteworthy events in the crypto industry included the growing popularity of non-fungible tokens (NFTs) and the birth of the Metaverse, with Facebook morphing into Meta and leading the way in the establishment of a virtual universe.
Many of the crypto themes that began to develop last year will be continued and evolved in 2022. The following are some of the new cryptocurrency trends in the coming year:
A New Regulatory Landscape
Many government agencies and financial institutions investigated the financial impact of cryptocurrencies on global economies in 2021, and many central banks weighed the implications of digital assets to their financial stability. In China, bitcoin was outlawed, and India took the first steps toward enacting legislation prohibiting the ownership of all private crypto assets. El Slavador, however, has made Bitcoin legal tender.
Without a doubt, government involvement and regulatory activities will increase in 2022, including the creation of central bank digital currencies and the adoption of digital currencies by central banks (CBDCs). 79 countries are currently exploring and building their own digital currency, according to the CBDC Tracker.
Broader Web 3.0 Adoption
Web 3.0 is one of the most important bitcoin developments for 2022, as it is more intelligent, connected, and open. It is a blockchain-based version of the internet that will allow users to retake control of their data, eliminate the risk of a site crash due to a single point of failure, and free website owners from dependency on the firms who operate the servers. In 2022, linked cryptocurrencies will prosper as Web 3.0 takes momentum.
A Bitcoin Resurgence
Bitcoin sank under $35,000 in mid-January after reaching a high of nearly $67,000 in November 2021, but has already begun to recover. In a memo to investors, FSInsight predicted that Bitcoin will surpass $200,000 in the second part of 2022, representing a 460 percent increase. While some analysts predict that Bitcoin will crash in 2022 to as low as $10,000 due to a perceived lack of fundamental worth, others believe that Bitcoin will bounce, roaring back to its previous high and beyond it to reach at least $100,000.
Expansion of the NFT Market
The ongoing rise of the NFT business will be another of the top bitcoin trends in 2022. Non-fungible tokens make use of smart contracts to give artists access to decentralised funding and provide a highly secure means of proving ownership of digital assets. As a result, as more artists desire control over their work, the NFT market is growing in popularity, with increasingly high valuations.