The Crypto industry achieved a great breakthrough in 2021, reaching millions of new users. As of 2022, the market capitalization of all cryptocurrencies is more than $1.6 trillion. In addition, it is known that there are more than 300 million Crypto users worldwide.
If you are new to the Crypto industry or are considering investing, this article may be good for you. Worried about what to invest with your hard-earned money? This is precisely why we will talk about Crypto trends that will shape the future by 2022 for you. Let’s get started now if you’re ready.
1. The Rise of NFTs
Undoubtedly, one of the most exciting emergencies in the Crypto space is non-fungible tokens, namely NFTs. As you know, NFTs have almost turned into the mainstream investment tool for Crypto in 2021. In addition, it will have the most significant part of the Crypto industry in the coming years. NFTs do not claim rights to an asset or physical thing like Bitcoin. NFTs can be swapped or split into even smaller parts.
In short, NFTs can reflect collectibles, physical or digital artwork, and items from video games. NFTs use the ETH blockchain as their technology infrastructure. In this way, NFTs gain the infrastructure where you can make intelligent contracts as if they define a physical product.
According to the statistics of some independent organizations, the monthly NFT transaction volume in October 2021 was determined as $15 million. In addition, the value of Ethereum in the NFT market has increased significantly from 3 million to 33 million dollars. As you can see, NFTs are still in their infancy but continue to spread rapidly across the industry. It is thought that this increase will accelerate, especially with the acceptance of NFT by the Art World.
2. Valuation of Altcoins with Various Technologies
Altcoins are cryptocurrencies designed as an alternative to Bitcoin. Since making its name in the financial industry, Bitcoin has started to appear in a variety of new cryptocurrencies. Specifically, Litecoin, Ethereum, and Ripple are old cryptocurrencies like Bitcoin but are considered Altcoins.
Such Altcoins are highly preferred due to the expensive transfer fee of Bitcoin. Various altcoins are used by thousands of bettors, especially in the industry.
In addition to all these, Altcoins are often seen as investment tools. And most people in the industry use it for this purpose. We would like to talk to you about some altcoins that can leave their mark on the industry by 2022.
- Solana
- Binance Coin
- Cardano
- Chainlink
- Ethereum
- Decentraland
If you have a little knowledge about the industry, all of the Altcoins we share with you are closely related to Metaverse, Blockchain technology, and NFTs. If you are considering entering the industry and do not know where to start, you can read our .
3. Crypto Industry Adoption by More Countries
With the rise of Cryptos, 2021 has been a very important year for the regulation of the market. The search for legal solutions for the Crypto industry continues by states and authorities. Governments and governments feel that Cryptos should be audited and tracked.
One of the most popular cases is when . According to this lawsuit, the SEC is placing claims on Ripple Labs for an unregistered $1.3 billion sale to the public. As a result of the course of this case, the existence of XRP was put in danger.
In addition to all this, the CFTC initiated civil enforcement action against the cryptocurrency exchange BitMEX. Although the regulations and the pressures on this issue still continue, the Crypto industry continues to grow at full speed.
4. DApp Market Is Evolving
DApps, or decentralized applications, are software that works as a peer-to-peer network. Decentralized applications hold potential market value. Accordingly, decentralized applications have grown by 369% since 2019.
DAppRadar said that they estimate the transaction volume in 2020 to reach $271 billion. The trading volume in 2019 was just $21 billion. We realize this growth sounds crazy. In addition to all this, many DApps run on the Ethereum blockchain and perform DeFi transactions. Again, according to DAppRadar, 45% of DeFi DApps run on the Ethereum blockchain. The transaction volume naturally belongs to Ethereum. 95% of DApp transactions happen on DeFi Ethereum software. It is estimated that 2000 DApps are currently running on the Ethereum blockchain.
The most popular Ethereum-based DApps you can transact with are;
- Uniswap (ETH Based)
- KLAYswap (based on ETH Blockchain)
- Raydium (built on Solana blockchain)
- PancakeSwap (based on Binance Smart Chain)
5. The Emergence of DeFi Applications and Yield Farming
With the year 2021, DeFi, that is, decentralized finance applications emerged. It became so popular in the process that we can say that it even surpassed NFTs. Basically, the same classical financial transactions that take place on the blockchain apply to DeFi. These financial transactions are always activated using smart contracts. With the DeFi technologies, the need for financial intermediaries, which we have traditionally been used to, has completely disappeared.
According to DeFi Pulse, there is currently a $95.28 billion Crypto investment in DeFi. This was $32 billion in 2020. The leading cryptocurrency in the DeFi industry is Ethereum, with a 17.8% market share. The most popular application of the DeFi industry is undoubtedly “yield farming.” Yield farming is a system where you lend your cryptocurrencies to platforms for interest. Yield Farming showed an increase of 942% compared to 2020.
Yield farming, if you’ve noticed, is similar to traditional banking. Clients deposit their cryptocurrency investments into a platform’s pool, earning interest income. To explain in more detail, the investor stakes a new Crypto platform with the money invested in the platform pool. In this way, they will get a new crypto asset in exchange for the liquidity they invest in.
The compound is currently considered one of the largest yield farming DeFi platforms. By depositing cryptocurrency in Compound’s pool, users receive a coin representing a share from that pool. The amount currently raised on the Compound Platform is just over $10 billion. And the total amount borrowed is $4 billion.
We know that you are confused by all this information. That’s why we want you to take a look .
Final Words: Decentralized Exchanges DEXs
DEXs allow users with Crypto assets to trade directly without the need for an intermediary. Also, Crypto users get full control of their assets thanks to DEXs. The term decentralized stock market has attracted attention with an increase of 315% in the last 2 years.
In addition to all these, the trading volume of DEXs reached $56 billion as of January 2021. When we look at the 26 billion dollars in 2020, it appears as a value increase of more than 1000%. We showed the platform, which holds most of this transaction volume, in the topic of DApp at the top of our article. Uniswap is a decentralized trading platform for Ethereum. And Uniswap holds more than 50% of the trading volume of DEX platforms.