With the first financial quarter truly over and the second one moving on nicely, 2022 is becoming a white knuckle in the cryptocurrency market. Interest in cryptocurrency has also risen and is a topic on everyone’s lips. It’s no wonder that investors are highly interested in crypto trends to find out its momentum in 2022. Here are a few cryptocurrency trends expected to dominate the financial market this year.
Although Bitcoin dominance reduced in 2021 and investors started to look for alternatives such as Ethereum, Polkadot, and Solana, BTC remains the main cryptocurrency asset. Altcoin dominance increased from 30% to 60% between 2021 and January 2022. Still, the demand for Bitcoin and its derivatives is expected to increase in 2022.
Banking is also expected to grow this year. Bitcoin represents an asset with the advantage of having a counterparty or credit risk, making it suitable as collateral. According to InvestorJunkie.com, there is even a plan to create an island that will only use Bitcoin.
The advent of DeFi, also known as Decentralized Finance, has drawn more attention to the crypto community. The concept involves the conventional financial transactions on the blockchain, which are possible using crypto contracts. The rate of search interest for individuals in DeFi has risen by around 5,300% in the last five years.
According to recent DeFi reports, the value of cryptos covered by Decentralized Finance smart contracts (Total Value Locked) has increased from $2 billion to $15 billion in 2022. One of the most famous DeFi applications is yielding farming, which involves lending crypto money or assets to other platforms for new cryptocurrency or interest. It’s also said to be the process of using DeFi to increase returns.
This is undoubtedly the most crucial cryptocurrency trend. Some years ago, companies and financial organizations were unconfident about the cryptocurrency ecosystem. However, things are changing, and most institutions today are collaborating with the crypto market and allocating lots of capital to cryptocurrency.
The end of 2020 registered about $15 billion in institutional assets in the cryptocurrency market. Experts claim the number is expected to increase in the coming years. According to a PayPal report, users who purchased cryptocurrency with their app registered more logins than before the platform allowed the transactions. Therefore, it’s more evident in the money management industry.
As the cryptocurrency sphere continues to expand, significant demand for blockchain is growing, too. The increasing popularity of cryptocurrencies and the technology that fuels growth in the blockchain industry has contributed to a higher demand for experts in the sector. For instance, blockchain is at a point where private organizations and governments have realized how the technology has improved people’s lives and created more robust organizations.
The same applies to agencies specializing in public relations. Some dedicated companies hire experts in the field to serve customers and help maximize coverage in business and media. Regardless of the crypto-related field, companies need experts to meet their business goals.
The cryptocurrency market has been unforeseeable in the past few years. Since the market is filled with many trends, having the right knowledge about crypto trading and market change can help you decide on the right investment. Innovation in this industry will continue, but these trends are a few in the cryptocurrency world.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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