If you are a crypto trader, you can attest that 2021 was a seemingly great year. Although it had its setbacks and drawbacks, it’s still one of the best years in the history of cryptocurrency. Thanks to institutional and retail investors, the crypto community is becoming even more mainstream, increasing user adoption. Most cryptocurrencies recorded their all-time highs last year; with several innovations coming into the crypto space, 2022 is set to be an even greater year for crypto enthusiasts. According to crypto price prediction, the crypto space is set to triple its current market cap on or before the end of 2030.
2021 was great. 2022 should be greater for everyone willing to take the risk. The crypto community has far more opportunities than any other sector, and 2022 has even more interesting trends to watch out for. So, is 2022 going to be bullish or bearish? What are the crypto trends that will be coming this year?
Below are some of the top trending crypto trends to watch out for this year
Crypto regulation has been in debate for a very long time. However, 2021 seems to be another reviving year, with the US sitting on about 35 new crypto regulations. This means that 2022 will see a lot of enacting of these regulations. So, as an investor, it is advisable that you take note of this process to balance every of your crypto transactions and be sure your taxes are up-to-date. Recall that last year, China banned every crypto-related transaction, and it happened. That shows how crypto regulation could get if you don’t plan. This is one of the most important trends to watch out for in 2022.
One of the ecosystems where regulation is most likely to hit harder is the DeFi ecosystem. There has been heavy scrutiny in the decentralized finance industry because of its growth. It was one of the most successful ecosystems in the crypto space last year. This year, regulatory bodies would be out to curb every one of its transactions to protect individuals and institutional investors from the price volatility of the crypto community. So, ensure you understand what crypto to invest in 2022 and keep yourself updated regarding the crypto regulation trends.
The crypto space was born due to technological advancement, and it has been evolving since then. This tells how much technology could get to making the world a better and safe place to live. With the evolution of technology, there’s always something new coming, such that for every innovation, an update is somewhere waiting to be released. Before now, coins and banknotes used to be the only means o exchange or tender. Right now, we have hundreds of digital currencies in the crypto space that could be exchanged for traditional fiat. So, the future of cryptocurrency in the next ten years down the line depends on how advanced technology would get by then. Several crypto founders are working on amazing projects and upgrades to improve their networks, making them more user-friendly and planning to increase their adoption rate. As this grows, the crypto community grows, and the mainstream adoption grows. This year, the crypto space would be enjoying several technological upgrades as major altcoins set to work on their networks with bigger and better upgrades.
Focus on decentralized finance
DeFi was one of the most talked-about ecosystems in the crypto space last year, and the reason was the growth it enjoyed. This is because of the competition between the projects in the DeFi space. Ethereum, a top-gun in the DeFi space, has about five other projects competing with its dominance. Hence, all projects are such that they keep their communities carried along, and their infrastructure stays updated regularly. Decentralized finance has several branches where you don’t even have to participate in active trading. You could invest your asset and get commissions. Some of these could be done on DEXs where you can be a liquidity provider, being an investor on lending platforms, and a yield farmer in DeFi Yield farming. This year, several investors would be looking into DeFi even more than last year, forcing its adoption into the mainstream to increase even higher. Solana and Terra are some of the Ethereum killers, and they have upgrades all piled up to overtake Ethereum by dominating the DeFi ecosystem. Ethereum, on the other hand, is also working on making its consensus PoS instead of the initial PoW, which seems to have several issues and has caused lots of setbacks on the Ethereum network. Keep an eye on DeFi. It’s set to do greater things this year!