Top 6 Crypto Trends to Pay Attention to in 2022

It’s hard to argue with the fact that the crypto industry faced an extremely volatile environment over the last year. However, there were noticeable price spikes and stable growth in certain sectors of the crypto market.

Based on information from the previous year, a vast number of analysts have assessed the current situation and I’m ready to provide you with the most reliable predictions concerning crypto trends for 2022.

Bitcoin – the King of Crypto

The whole crypto market experienced a huge crash at the beginning of 2022, its total value plummeting from $3 trillion to less than $1.5 trillion. Being the most influential and crucial coin in the industry, Bitcoin dropped from $69,000 to $33,000.

Despite this incident and the fact that the most popular cryptocurrency’s dominance has fallen by 20%, Bitcoin is still the king of the crypto space. BTC’s total domination is confirmed by the enormous total crypto market cap and specifically-calculated market capitalization ratio. Also, investors generally tend to purchase Bitcoin for long-term holding.

Based on this information, the demand for Bitcoin and its derivatives is going to top off in price in the upcoming months, so pay attention to its movements and make sure to invest at the right moment. There is a growing number of trading platforms that can help you do this.

The Decentralized Finance Space

Photo: How-To Geek

Basically, DeFi is the crypto industry’s alternative to Wall Street and it isn’t burdened with many of the costs that Wall Street needs to cover, such as banker’s salaries and leasing of trading offices. DeFi is able to build fair and free-of-charge financial markets that can be accessed by any individual with an internet connection.

Using smart protocols and contracts operating on blockchains, the decentralized finance market aims to offer users financial services without centralized intermediaries. Special protocols for trading with stablecoins are the heart of DeFi.

Throughout 2021, the size of the communities behind different decentralized applications increased manyfold, while the overall DeFi ecosystem showed an incredible rate of growth. Most interestingly, more useful dApps based on unique concepts will continue to enter the market.

So do not underestimate the DeFi space in 2022 as it has the potential to bring you many benefits as well as solid profit.

Yield Farming

Photo: Binance Academy

Yield farming, also known as liquidity farming, is a way to earn rewards using cryptocurrencies. To put it simply, it means locking up cryptocurrencies in certain smart contracts and receiving regular dividends.

You may confuse the terms ‘staking’ and ‘yield’ farming, but there are some fundamental differences. The latter works with users called liquidity providers (LPs) who add funds to liquidity pools.

A quite reasonable question you may ask is – what is a liquidity pool? Well, it is simply a smart contract (a specifically designed program that automates financial agreements between two or more parties) that holds funds. In exchange for providing liquidity to the pool, LPs receive a reward. This reward can come from fees generated by the DeFi platform or from other sources.

These rewards are called annual percentage yields (APY), which can sometimes reach more that 100%. By following the proper approach, you can take advantage of yield farming in 2022.

Non-Fungible Tokens

Photo: Politico

Generally speaking, the use cases for NFT are unlimited, given the fact that they can be used to transfer rights pertaining to virtual and physical property. Realizing that, development teams all over the world are starting to implement these tokens in various spheres of human activity.

Huge high-profile companies have finally recognized the full potential of NFTs. For example, Nike has recently released a collection of NFT mystery boxes. Digital collectible items represented as NFTs are actively being sold as well (e.g. by Tidal, NBA, WNBA, etc.). Aside from that, Asics, Coca-Cola, McDonald’s and Original Penguin have also successfully used NFTs in their marketing campaigns over the last 12 months.

From a statistical point of view, the value of NFTs in the art market is a stunning $774 million. That shows genuine interest from users and creators, making it a definite trend for 2022.

Metaverses

Photo: ITHardware

For a long period of time, the idea of virtual worlds existed only in the imagination. However, everything is now changing rapidly. The word ’metaverse’ can be seen all over the internet and is rightfully considered one of the buzziest words around, particularly among crypto enthusiasts.

Last year, Microsoft and Meta (formerly Facebook) officially announced that they were creating their own approach to constructing digital worlds, i.e. ‘metaverses’. Users can be pretty sure that these huge industry players will develop largely centralized and comprehensive systems. Our mission, as users, is to support the dawn of the crypto world.

“The defining quality of the metaverse will be a feeling of presence – like you are right there with other people or in another place. Feeling truly present with another person is the ultimate dream of social technology. That is why we are focused on building this,” said the CEO of Meta, Mark Zuckerberg.

If developers manage to make the value transfers smooth and seamless between various crypto universes, it will inevitably spur a new wave of adoption. As a result, the NFT and blockchain games economy will be used more widely.

This is exactly what we are all looking for, so make sure you pay attention to the theme of the metaverse this year.

GameFi Industry

Photo: CYBAVO

Right now, GameFi is one of the hottest and most profitable trends out there. This sector’s rate of development is amazing, attracting thousands of users on a daily basis.

Originally, ‘GameFi’ was born out of a merging of blockchain tech and gaming. The newly-formed market segment allows users to own digital assets and to trade them with each other. As a rule, in-game assets are presented as NFTs, owned by players, allowing them to generate profits.

Hundreds of GameFi projects are entering the market every month, though not all Play-to-Earn games are worthy of your attention. Everyone has heard of Axie Infinity, right? But to be honest, the game is already highly saturated with experienced players that joined the project in its early stages, so it is quite hard to generate profit from it now.

That is why me and my professional team created a decent alternative called SIDUS HEROES. It is the first ever WebGL, AAA-level, Play-to-Earn, NFT and MMORPG game. The events of the game take place in a space metaverse in the distant future. Due to huge scientific breakthroughs, all living beings have become one with technology.

Within the SIDUS metaverse, players are able to:

• Build legions, unite Heroes from different backgrounds, train and rise together.
• Use the multiplayer feature to fight together.
• Enjoy unmatched HD rendering quality during the game process, thanks to its enhanced graphics engine built on WebGL.
• Farm for resources, craft, build and develop their own infrastructure.
• Take part in the political life of the universe, get elected, represent their own race, etc.

Actually, SIDUS perfectly combines the Play-to-Earn and metaverse concepts, making it the ultimate platform for users all around the globe. Our core team has made every effort to ensure that users can leverage all the benefits of the GameFi industry. I encourage every reader to join us early and start their profitable journey right now.

Final Word

In conclusion, do not overlook these hot trends in the industry and keep up with current events if you want to get maximum benefits for yourself. Also, make sure you follow verified media resources and blog posts to ensure your assets always remain safe.

Guest Posts

Author: Dan Khomenko

Chief Executive Officer at NFT STARS! and SpaceSwap. Executive board member of the Platinum.fund. International entrepreneur. Software developer. Property developer in Australia. Angel investor.