In 2021, digital assets had a banner year, but 2022 could be even better, as cryptocurrencies will hit new heights in the coming year. Last year was special because the day-trading excitement that erupted during the 2020 COVID lockdowns was translated into meaningful implementation and innovation by businesses like Twitter. From bitcoin to dogecoin, almost every cryptocurrency hit new highs and saw massive gains. In May, though, the market dropped over half of its value in just seven days.
The value of digital currency has climbed roughly 70% since the beginning of 2021, bringing the crypto market’s value to $20 billion. It’s been a year marked by the emergence of the first big crypto business, Coinbase, in April, growing engagement from Wall Street banks like Goldman Sachs, and the authorization of the first bitcoin exchange-traded fund in the United States.
Crypto Predictions for 2022
With next year already setting itself up to be another wild ride for digital currencies, let’s take a look at some of the strong predictions for crypto in 2022.
Bitcoin ETF comes rated first.
The authorization of the first spot bitcoin exchange-traded fund in the United States is a significant event that crypto investors anticipate in 2022.
Although the Securities and Exchange Commission approved ProShares’ Bitcoin Strategy ETF earlier this year, the product monitors bitcoin futures markets instead of giving investors significant exposure to the cryptocurrency.
Meme coins will rapidly deplete.
Meme coins are effectively a casino, but they benefit from positive feedbacks since winners generate a lot of public interest, which keeps the winnings coming in. A descending or sideways cycle, on the other hand, can be pretty painful. In 2022, crypto entrants will exhibit reduced ape-like behavior and a centralization around intelligent investment. That means coins like doge, which peaked in May, will continue to lose momentum, and additional pumps will have limited upside.
Bitcoin will reach a value of $100,000.
It may appear to be a realistic projection for bitcoin’s price in some areas. Still, it’s worth remembering that bitcoin’s price did demonstrate some of its abnormal returns in 2021, ranging from recessions around $30,000, including all highs of about $70,000. Increasing inflation, global loose monetary policy, and the growth of cryptocurrencies all point to the same conclusion: crypto assets will be around for a long time.
‘Defi’ could be added to the rotation.
As individual investors become aware of the risks of trading bitcoin, particularly on unregulated exchanges, they will shift to other blockchain-based coins that serve a fundamental function in decentralized finance.” Analysts expect this trend to continue in the coming years, as investors seek tiny pockets of cryptocurrency in the hopes of making significant gains.
Best Crypto List
Here is a list of the most significant cryptocurrencies you should consider immediately purchasing.
It’s a decentralized software platform that lets you build and deploy smart contracts and decentralized applications without worrying about unavailability, forgery, control, or third-party involvement.
Dogecoin, also known as memecoin, is the 12th largest cryptocurrency. It exhibits the never-ending speculation in the cryptocurrency market.
Its goal is to provide interoperability in different blockchains. Its protocol connects permissioned and decentralized network blockchains, allowing systems to collaborate under one roof.
Litecoin is known as a public global payment platform that is not centralized. It has a faster block production rate and thus a faster processing time for transactions.
Cardano aspires to be the international finance operating system by producing Defi products related to Ethereum and methods for chain interoperability, illegal voting, and legal arrangement tracing, among many other concerns.
It is an open-source cryptocurrency that is 100 per cent charity and community-driven. It focuses on decentralization, sustainability, and superior security processes.
Binance Coin (BNB)
It is a utility coin to pay for costs related to transactions on the Binance Exchange. In market capitalization, it is the third-largest cryptocurrency.
We have seen significant changes in the cryptocurrency business during the previous ten years. Since 2021 was indeed the year that blockchain and crypto-assets became a popular topic of discussion and research, the following year appears to be on track to be the year that policy and laws catch up with market reality.
Although it is still far too soon to predict how well the blockchain and crypto-asset industries will develop, the entire picture is clear: these technologies have entered the mainstream. Whatever price changes for various tokens or coins occur, it is evident that the awareness and acceptability of crypto assets will continue to grow. As the calendar turns to 2022, consumers, traders, and company owners would be well to keep a close eye on this sector.
You can look at other research and insights at cryptolaun.ch to better understand the cryptocurrency and why it’s time to turn to it because it’s hitting new heights every day.