2021 was a great year for the crypto market where we saw all time high of bitcoin and many others, we also also the Facebook entering the blockchain world and NFTs becoming high value digital assets.
Digital assets have had a very successful year, Crypto.com, and the exchange giant makes predictions for the year ahead.
The exchange’s research team forecasts continuing crypto adoption in 2022 – with a focus on a specific sector.
First, the exchange giant predicts that the number of international crypto users will “reach 1 billion by the end of 2022.”
“Nations can no longer afford to ignore the growing push toward crypto by the public. We may in many cases expect a friendlier stance towards the crypto industry:
We expect developed nations to devise clear legal and taxation frameworks for crypto assets.
In parallel, more nations facing a highly inflationary economy & depreciating currency may adopt cryptocurrency as legal tender, following the example of El Salvador.”
Next, Crypto.com’s research team predicts that cryptos will become a staple in traditional finance portfolios.
“Crypto will become a fixture in the alternative asset class for investment portfolios.
The first crypto ETFs launched this year were met with demand beyond their capacity, suggesting that more crypto instruments in the mainstream finance industry will soon follow.
Bitcoin and Ethereum spot ETFs [exchange-traded funds] like Valkyrie’s received approval earlier this year.
Traditional banks and financial houses like Morgan Stanley, Citi, Goldman Sachs, JP Morgan, E&Y, Bank of America, and Credit Suisse are seeking partnerships with crypto exchanges to integrate crypto into their main services from payments to transfers and investment.”
The exchange’s research team expects the mass crypto adoption to be fueled, in part, by the acceleration of one crypto sector in particular: the ever-expanding world of non-fungible tokens (NFTs), blockchain gaming, and the metaverse.
“The metaverse has grown exponentially in 2021, leading the way for evolution in online culture through NFTs, gaming, and online identities. It is crystallizing as the gateway for crypto adoption by non-natives.
We predict GameFi/Play-to-Earn to be one of the main vehicles for mass conversion to the crypto space, with traditional game studios racing to incorporate these elements into their existing line-ups.
As Web 2.0 tech giant Facebook, now Meta, peers into the metaverse and uses it as a venue for monetization, we expect more to follow.
NFTs collectibles are booming, with NFT profile pictures as a stepping stone between the metaverse and the real world as the space matures.”
Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Liu zishan/Natalia Siiatovskaia
