The cryptocurrency market is one of the most volatile markets in the world. With that volatility, it’s not easy to make predictions about what might happen in 2022. But we can still try! This blog post will explore crypto trends for 2022 and how they might affect the market.
The top four trends are:
Let’s look at these trends.
- More Regulation
One of the main trends we can expect to see in 2022 is more government regulation. There are over 200 cryptocurrency-related bills currently being considered by legislatures worldwide. And some countries like South Korea and Japan have already implemented stricter crypto trading policies due to money laundering and tax evasion issues.
With stricter regulations for exchanges, many might be discouraged from participating in ICOs or even selling their coins on exchanges, resulting in less activity within the market overall (less demand). Bitcoin Era is a top trading platform that you must use.
- Major Blockchain Breakthroughs
Bitcoin and Ethereum will be used as major payment methods in dozens of countries worldwide. Many governments, including those who oppose cryptocurrencies, will begin to see their benefits over traditional currencies for citizens and businesses alike.
Most notably, Japan is already taking steps towards legitimizing Bitcoin as a currency with its new law that goes into effect next year. This trend could quickly spread across Asia, which has been at the forefront of cryptocurrency trading volume since its inception.
- Declining Bitcoin prices
Bitcoin prices have been declining for the past few months, and this trend is expected to continue throughout 2022. This could be due to several reasons, including global economic instability, increasing regulation of cryptocurrency, and waning interest in Bitcoin as a payment method.
However, despite declining prices, Bitcoin is still expected to be the dominant player in the cryptocurrency market throughout 2022. Other cryptocurrencies such as Ethereum and Litecoin may see some gains in popularity during this period, but they will not overtake Bitcoin’s market share.
- Increasing Government Interest
The G20 nations are working together to develop a standard for cryptocurrency regulation. They will likely delay the full implementation of their plans until after the 2020 elections, but it is clear that they intend to take action on cryptocurrencies in some form or another.
Suppose one country were to act unilaterally without regard for other nations’ interests. In that case, that could cause issues with international trade and possibly even lead to war if tensions rise high enough between countries.
- Web 3.0 is predicted to break into the mainstream
This will be the year that Web-based applications and services finally overtake their traditional counterparts. With more people using smartphones and other devices to access the internet, it’s becoming increasingly difficult for companies to ignore the potential of decentralized technologies. We can expect to see a lot more dApps being developed in 2022 and an increase in mainstream adoption of cryptocurrencies.
The Bottom Line
The world of the blockchain is moving forward at lightning speed. It’s important to remember that while some cryptos like Bitcoin and Ethereum will inevitably fall out of favor, other cryptocurrencies may rise in value based on their true utility. The technology itself has proven useful for many non-crypto currency purposes (such as logistics), which can help bring more trust into this nascent space.