Crypto in the World of Tomorrow
Over the past few years, crypto has become an increasingly hot topic. The reach of cryptocurrencies and the blockchain has expanded significantly. While Bitcoin was launched more than a decade ago, there are prospects of the next influential digital token rolling out in the near future.
The report by the BitMEX crypto exchange called “Five ways the world of crypto will change in 2022” offers us an interesting forecast. The study was based on existing research and analytical data on crypto and upcoming trends.
1. Growing Involvement of Women in Crypto
The increase in the popularity of cryptocurrencies among women does not look like something out of the ordinary, as the number of transactions and interactions with the exchanges is growing worldwide.
On January 11, 2022, Finder shared data on the cryptocurrency adoption index. It stated that the gender split of crypto owners as of December 2021 was 41% for women and 59% for men. That said, the Bitmex statement emphasizes that what drives this financial instrument forward and provides inclusivity is spreading education, advertising, and accessibility, together with better regulations. Thanks to this, the number of female investors may exceed the number of men in the crypto industry in the foreseeable future.
2. Solana Possibly Overtaking Etherium
The advantages of Solana, such as fast and cheap transactions and the application of smart contracts, allow the project to gain profit from NFTs, Web 3.0, and the Metaverse. Shortly after launching the leading mainnet in 2020, the Solana network attracted 400 decentralized apps (dApps). This led to a significant downturn for Ethereum’s positions that had obtained and developed a total of 5,000 dApps since 2015.
Moreover, there are two other factors that may accelerate Solana’s performance. The Proof-of-History protocol, introduced and used by Solana, provides the network with much greater security and resistance to censorship. There is also a chance to take advantage of the delay in Ethereum transitioning to Ethereum 2.0. This leads some to believe that Solana could potentially grow to $1,000.
3. Explosion of the Gaming Industry in the Crypto World
The surge of gaming in the crypto industry seems predictable, if not inevitable. Play-to-Earn crypto games use NFT through in-game assets and award players with these assets if they achieve a certain goal. Currently, new games based on this concept are in development.
According to the DappRadar report, cryptocurrency-based games are booming. The study demonstrated that the gaming business attracted an average of 1.2 million active users every day. The Axie Infinity game surpassed 2 million daily users in November 2021. Meanwhile, the Chainalysis report underlined that NFT sales volume reached $27 billion in 2021.
4. Need for High-Yield Savings Products
Traditionally, investors focused on capital accumulation. By 2022, many are warming up to the idea of making a profit from holding crypto assets. That’s why the consumer demand for high-yield savings products may soar.
The inflation in the US has increased. Many traditional securities no longer look as attractive as highly profitable savings offers on the cryptocurrency market in the context of dropping US interest rates. As a result, investors may turn to crypto lending platforms, including centralized crypto firms and decentralized finance. New proposals in the crypto industry are believed to be promising because of the high ROI and favorable opportunities to earn.
5. Crypto Firms Acquiring Trade Finance Companies Back
BitMEX highlights a surge in M&A activity in 2021, with the number of transactions rising to 201 — this is 131% more than the previous record of 85 in 2020. The total value of these transactions increased sharply by 730% or to $6.1 billion.
Many trade finance (TradeFi) companies have recently acquired crypto firms. However, let’s take into account that the approach in traditional finance is mostly very slow and conservative, while crypto firms are developing rapidly. Mergers and buyouts of TradeFi companies by crypto firms seem more likely.
We are most likely to witness the massive adoption of cryptocurrencies, including payment for products and services, particularly among women. According to the BitMEX forecast, we can expect a surge in Solana usage due to its competitive advantages. Crypto games and commercial mergers have also formed into a trend. Meanwhile, high-yield products can be an excellent means of combating inflation and increasing income.