The global crypto market will hit $2.73 billion worth by 2025? The year 2021 was great for cryptocurrency trading. While many understood the crypto market to be among a comparatively small community of investors, it has become a household name. Therefore, as an investor, you cannot help but jump into the bandwagon of opportunities presented by cryptocurrency.
Though cryptocurrencies from bitcoin to dogecoin recorded high and gave eye-popping gains, about 47% of the whole market value was wiped out in May 2021 within just seven days. So, the crypto market is quite volatile. Before risking your money to invest in digital currencies, you need to check out the latest trends.
Looking at bitcoin, for example, its price has dropped in value by nearly 50% from the time it was high in November. However, the latest records and current prices are impressive considering how it started in 2020. Therefore bitcoin is one of the tokens likely to experience faster price bumps in 2022 than Shiba and dogecoin. While Ethereum and bitcoin have gone through their ups and downs, shorts of all times high are seen to be gearing towards growth as crypto trading gets acceptance widely.
Crypto Trends Predictions Likely to Enhance Market Growth in 2022
Growth of Metaverse and GameFi
GameFi concept has experienced a massive rise. Here, you play, win and get a reward. Who doesn’t love winning and getting a reward? GameFi is integrating that aspect seamlessly. The concept of play-to-earn, coupled with improved graphics and gameplay, has led to a surge in demand for crypto games. As a player, the play-to-earn game implies you can earn tokens in-game and then swap on a cryptocurrency exchange to get cash. That will greatly promote growth in the crypto market in 2022 and beyond.
Metaverse growth is another area that will contribute to the growth of the crypto market in 2022. For example, Facebook has rebranded as Meta. That decision has put virtual worlds in the spotlight. While it is not clear whether virtual worlds will be decentralized or corporates will dominate the space, cryptocurrencies will be a greater form of payment in the Metaverse. And that has a greater role in the growth of crypto trading.
Web 3 Implication of Cryptocurrencies
Today, blockchain technology has become popular, and the internet is among the key areas projected to grow. As the world develops new ways to invest in cryptocurrency and blockchain, web 3 will be next to the great crypto trend. You are likely to get a reward for sharing your time, posting messages, or building online communities. While webs 3 are linked to Metaverse and gaming, it has wider implications. Imagine controlling your data and earning tokens for participation? Being an investor, anything related to web 3 needs to be on your radar as its keyspace to watch.
Global Shift Towards DeFi
Global fintech companies want to enter the market with better blockchain solutions. They look forward to enhancing scalability, credit scoring, and financial privacy. Many fintech companies are adopting Defi to address those issues, increasing the demand for Defi tokens and linked projects. Therefore, Crypto expansion like decentralized finance and autonomous organizations will be a great growth area of crypto in 2022.
The Boom in NFT Market
The rising of the NFT market has also led to the demand for cryptocurrencies. NFTS have become popular because they give many people a way to showcase and sell their digital work. Many celebrities have entered the NFT market by buying artwork, which has contributed to the expansion of the digital asset market.
You must surely checkout the Article on NFTs from Porch.com to get some more insights.
Many countries are working on regulating digital currencies. Having regulations in the crypto market will reduce high volatility as regulators exercise their authority. Regulations will help mitigate damages linked with massive sell-off. Apart from that, regulations can minimize the use of crypto for illegal business. The cryptocurrency market needs to win investors’ confidence, and that’s possible with the upcoming regulations.
You cannot gain much without risking. With digital currencies gaining popularity, you need to invest and earn like others. All you need is to master the crypto market trends and know when to deposit your money and earn. The future of cryptocurrencies looks brighter as the above projections will promote market growth in 2022.