2021 is a breakout year for cryptocurrencies and blockchain technology. Token prices, technological advancements and layer-2 adoption have exceeded all expectations. The NFT market has grown vibrantly. The ERC-721 NFT standard topped ArtReview’s annual “Power100” list. The Wall Street trading firm recently hired a crypto broadcaster and no-experience DeFi trader in the financial markets for its newly launched crypto arm.
- Real Vision CEO predicts $100k Bitcoin and $10k ETH by the end of 2022
- Apple VP sagt, AirPods würden von „mehr Bandbreite“ profitieren, als Bluetooth bietet
- Vietnam is in the top of countries with the highest percentage of cryptocurrency holders
- VinFast applies Blockchain technology, NFT, in e35 and e36 car bookings
- Facebook hunts employees from Microsoft and Apple for Metaverse plans
Price cycles can play an important role in market euphoria, but in terms of the continued growth and expansion of the digital asset ecosystem, 2021 is just a kick-start. Can the uptrend be sustained in 2022? Here are four predictions for the market in the new year.
1. The Year of the DAO and the Ownership Economy
Like the metaverse, DAO is a new concept that has been widely accepted by users in the past year. This trend is consistent with the general intellectual, cultural and moral environment of the current era (the era of living with the covid pandemic). The global workforce has been re-evaluating what it means to collaborate in a completely decentralized way.
Jesse Walden of Variant Fund, an investor at Gro, has spoken often about how technology is allowing us to move closer to the ‘Ownership Economy’. In it, individuals can actually share ownership in some of the platforms they contribute to.
This collaborative economic model helps ensure better engagement with users over time, he says. This helps platforms become more flexible, inclusive, and innovative. They will be run in optimal condition, taking advantage of incentive marketing to increase the network’s effectiveness.
An example of an ownership economy in the workplace is Uniswap. This is a cryptocurrency exchange that allows traders to buy and sell digital assets just like on any centralized exchange, with a transaction fee. However, unlike centralized counterparts, Uniswap is open source and user-owned. It doesn’t treat those transaction fees as profits. Instead, it distributes fees to traders making the market to provide liquidity and make the product useful, ensuring a smoother experience.
Third-party developers have built a rich ecosystem around Uniswap. This further increases its popularity and enhances its functionality, outperforming centralized exchanges.
ConstitutionDAO is the most prominent DAO-related story of 2021. It was a failed attempt by a group of crypto users to purchase a rare, first-generation copy of the United States Constitution at auction. .
Even without success, the project resonated within the community. At the end of November, another DAO won a bid for another document – the Declaration of the Anti-Slavery Convention.
Gathering crowdfunding is one of the use cases for DAOs. After using DAO to launch the GRO token, Gro DAO has now set up a decentralized marketing team from members of the community. G-Force was tasked with improving two key KPIs. The first is the total value locked in the Gro protocol. The second is the size of the global Gro online community. Members will be rewarded with GRO tokens for their contributions.
The G-Force initiative aims to demonstrate the utility of DAOs in creating a decentralized organization, with a specific purpose related to accelerating the development of a project. This is not just about project management. It is also an exercise that tests the ability to engage the community through the marketing and promotion of the project.
Over the next year, we will see more such experimental initiatives around the DAO, helping it to become more popular. Projects will increase the use of DAO-based crowdfunding, to supplement or replace traditional VC funding.
2. Multi-chain thrives
Over the years, it seemed like no platform would really rival Ethereum. Many first-generation smart contract platforms failed to keep pace and gradually became obscure. But when DeFi adoption began to skyrocket in early 2020, Ethereum’s limitations, particularly high gas fees, quickly became the focus of the market. 2021 has seen an explosion of activity on layer-1 and layer-2 sequences, with BSC, Solana, Avalanche, and Polygon being the standout projects.
So, by the end of 2021, it is perhaps no surprise that cross-chain bridges and multi-chain protocols are seeing increased transaction volumes and user numbers. leap. Curve Finance, the most popular DeFi application by total value locked (TVL), currently operates on seven chains, a mix of Layer-2 and Layer-1.
In 2022, Ethereum’s Layer-2 will likely flourish, replacing Layer-1. Popular Layer-2s like Arbitrum and Optimism are attracting users from the community and Zero-Knowledge rollup is starting to join the DeFi ecosystem, including the Gro event being deployed on Argent zkSync.
The multi-chain ecosystem has huge advantages, especially in reducing transaction costs and creating multiple access points for new users. So we can expect this trend to continue, with more protocols being established on multiple chains and further improvements to the multi-chain user experience.
3. Web3 joins the game
NFTs, DAOs, and metaverse are simply components of a broader journey into the Web3 era, which will begin to become buzzwords in 2022. Elon’s brother, Kimbal Musk, is going all out. for this transition with a DAO of its own, the Web3 charity that addresses food equity. In a recent interview, Musk touched on the idea that Web 3 is enabled by community creativity. This effectively links all the related developments we are currently using.
In 2022, the boundaries that define different digital asset segments will become increasingly blurred. NFTs, DeFi, decentralized metaverses, and DAOs will begin to become part of the way we interact online and collectively known as Web 3. 2022 will be the year that marks the first time consumers begin to experience the experience. Web3 in their daily lives.
4. The market cools down, but doesn’t freeze
Price prediction is always a very difficult subject, but everything has its rules, the market can go up, it can also go down. At the beginning of December 2021, most of the crypto market was still eagerly anticipating another major bull run. However, based on previous cycles, a recession is still possible.
However, this prediction does not mean that the entire market will have a serious downturn. Keep in mind that this sector has emerged stronger than ever since the crypto winter of 2018 and 2019. With momentum and attention from the current community, this long and bleak period seems hard to repeat.
Furthermore, from a trading and investment standpoint, there is a big difference between 2018 and now. A $275 billion DeFi market has emerged over the past few years and is providing users with protected profits through stablecoin profit farming, which was not possible before. Gro products allow users to profit from a variety of sources with protected, low-risk tokens or more aggressive (but still market-neutral) stablecoin strategies.
As such, while the price cycles take place, the market itself will not freeze like it did in 2018. Moreover, the trends mentioned above have provided more than enough impetus to warrant benefits. for investors to develop and adopt digital assets during the next market cycle.
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According to Beincrypto