2020 and 2021 were great years for cryptocurrency as COVID 19 accelerated the digital transformation. Undoubtedly, 2022 is also witnessing huge breakthroughs and achievements as cryptocurrency trends are shaping the future of finance. We have just stepped in 2022, but new developments in the crypto world are emerging day by day. We can expect more crypto adoption and some of the top cryptocurrency trends ruling the crypto space in the coming six months.
If you are a crypto enthusiast, then you should know the increasing market trends of cryptocurrency in 2022 for everyone to watch out for:
Decentralized financial services or DeFi projects are going to be one of the top trends in the crypto market in 2022. DeFi projects have had a strong foundation in the financial field lately. Experts believe Defi to be one of the critical drivers for the accelerated adoption of digital tokenization. DeFi will also bloom along with the growth of Ethereum.
Growth Of Stable Coins
The volume of the stable coins in circulation was increased by 500% in the year 2020, with Tether and USD. As market leaders, dollar-pegged stable coins will see more light of the day in 2022. Regular currencies have become one of the trending crypto coins today. Stablecoins offer a wide range of advantages, so more investors invest in them to protect themselves from crypto market volatility.
Central Bank Digital Currencies
With regulations coming into the picture, experts also expect central banks to be a part of the game with the introduction of Central Bank Digital Currencies. CBDCS can also become the future source of payments and finance.
Cryptos Will Go Public
Increasing trends for cryptocurrencies may test their waters for IPOs. The growing popularity of crypto exchanges also expects them to go public. These may turn out crypto to be a well-established market with significant players defining the scope.
Make way for Exchange Traded Fund (ETF)
Crypto lovers are looking forward to the ETF in 2022. However, it may take some time as its decision on ETFs has been banned by the US SEC for a long time now. But, if EFTs get approved by the US SEC, more traders will invest in cryptocurrencies instead of exchange wallets. This will be another boom for the crypto world.
Nfts (Non-Fungible Tokens)
NFTs are digital assets that represent products in the digital and real world. These are used by the people who trade items and the art and gaming industry. In 2022, it is expected to see more adoption of NFTs.
Get ready to pay crypto tax as various countries plan to implement it soon. Governments of different countries have already created tools to monitor cryptocurrency transactions.
5G Is Expected To Go Mainstream
5G will be used on mining operations, operating DeFi applications, and introducing new services in the market. Network issues will be resolved as 5G will provide High-speed connectivity. This will eliminate the need to place servers near crypto exchangers.
Millennials Interest In Crypto
Besides investors, millennials are also interested in the crypto field. A large number of study materials in cryptocurrency will be made available to guide millennials in the highly volatile crypto market. The increasing crypto market trends will guide these millennials to invest strategically.
The Bottom Line
Investors eagerly look forward to what this year holds for the crypto market. 2022 is expected to be an eventful year for the crypto market. The strong market trends that began in 2021 are expected to continue in the subsequent years. An increase in the number of market participants is also likely. Investors expect the trends mentioned above in the crypto space in 2022.