Since the inception of cryptocurrencies in 2008, the world has entered a new era of advancement. Despite decentralisation issues, the uses and facilities that crypto brings to the world can’t be ignored. Blockchain spread its roots to almost every field of life. It has penetrated the infrastructure sector, payments systems, financial systems, services sector, media and entertainment industries. Despite the scorching advancements in technology, experts say that the real race has still yet to begin as many big organisations have started owning crypto. Above all, the advancement to date is the tip of the iceberg, and the real game has yet to begin. Here are some crypto trends that everyone should keep an eye on in the near future.
This information should be considered an educational guide and not financial advice to you.
Regulation has been the major concern of crypto from the day first. Despite hefty investments in crypto, the countries have not yet established straightforward regulation policies toward crypto trading. It seems that they are struggling to manage their control over crypto assets. In the US, they put forward different visions on cryptocurrencies. For example, the US’s SEC views cryptocurrencies as securities, while CFTS calls them commodities. On the other hand, the IRS classifies crypto as property for income tax purposes.
Regulatory bodies are burning their minds to bring crypto under their umbrella. For example, Canada is the first country to approve Bitcoin ETF on Toronto Stock Exchange. Furthermore, Canada classifies crypto as Money Services Business (MSBs).
The United Kingdom takes crypto as property but not legal tender. The exchanges are bound to be registered with Financial Conduct Authority, whereas crypto derivatives trading is banned in the UK.
China has strict regulation over cryptocurrencies as they do not class them as legal tender. Furthermore, crypto exchanges are banned from operating in China. You can check out the regulation status of most involved nations on Investopedia.
Anyways, proactive steps are being taken worldwide to regulate crypto. In the near future, a strong decision toward crypto regulations is expected, making it one of the top crypto trends to watch.
Major Organisations Owning Cryptocurrencies
Blockchain technology with its underlying assets/currencies, Bitcoin and other cryptocurrencies are praised for being anticipated game changers in various industries like shipping, supply chain, banking and healthcare. Besides this, many cryptos, including the Bitcoin, have limited supply, making them a more reliable source of long term store of value. All these benefits crave big companies to invest in them heavily.
As of December 2021, MicroStrategy, a prominent business analytics platform, claimed a holding of 124,391 BTC in reserves. Tesla of Elon Musk holds 42,902 Bitcoins, probing their interest in crypto. Later on, they sold 10% of them, which is a completely different saga. Similarly, crypto-focused merchant bank Galaxy Digital Holdings, founded by Michael Novogratz in January 2018, holds 16,400 BTC. The company also partnered with other crypto firm anticipating their potential in them. Check out the list of top 10 public companies with the biggest BTC portfolio here
The interest of corporates in cryptocurrencies ignites more trust in blockchain and hence gives reason to small organisations and investors to risk their capital. It would be a nice topic to look for what is going to happen in the near future because many organisations are not consistent with their investment decisions and accepting crypto as their payment mode. So, it is one of the top 10 crypto trends everyone needs to watch out for.
Introduction of CBDCs
Any country’s Central bank takes key economic decisions. The expanding flames of cryptocurrencies put the central authorities in turmoil as they seek no way to counter the effects or control them in a favourable way. So they come up with the idea of Central Bank Digital Currency (CBDC). They are defined as the digital token pegged to the value of that country’s fiat currency.
To date, 9 countries have fully launched CBDC. However, 8 of them are from the Caribbean. Nigeria becomes the first country to institute a CBDC. It is the first country in the African continent to create a CBDC.
There is a looming discussion on media that the top-notch countries will introduce the currencies in the near future. It is worth watching and following this crypto trend imagining the world economy reaction after the first world countries have their own CBDCs.
Crypto intro in ETFs
A cryptocurrency exchange-traded fund (ETF) is a fund that is made up entirely of cryptocurrencies. This exchange-traded fund (ETF) monitors the price of one or more digital tokens. The share price of such ETFs fluctuates daily based on investor sales and purchases. They are traded daily, much like common stocks.
Crypto ETFs are the next big thing in the trend that investors will be seeking in the future. Crypto ETFs will reduce the ownership cost significantly and rise liquidity abnormally. The first cryptocurrency ETFs began in October 2021. This fund tracks the Bitcoin futures prices.
Apart from that, there are hardly any crypto ETFs with a crypto portfolio. If there are any, they have sheer dependence on Bitcoins.
Despite the benefits, there are strict regulations by the authorities regarding Crypto ETFs. So, the trend of crypto ETFs is worth to be followed.
Countries have devised the technology to track crypto transactions with the surge in crypto transactions. This helps apply the taxes and hence keeps the transactions safe and secure. In addition to that, authorities devised to prevent any illicit transactions and safeguard investors’ trust.
The United States has taken a step by developing a smart technology that can extract raw data from fibre-optics to identify the IP addresses and IDs of individuals dealing in Bitcoin online.
Many countries are also seeking to implement taxes on crypto gains, exchange, mining and purchasing. Although the tax basket could be different, it is for sure that they will implement them.
Experts say this would change the crypto market trend either to the boom or the bust. Due to a lack of regulation and central monitoring, crypto has been abused for money laundering. With a proper taxation system and monitoring, there is a possibility that the liquidity would be put out, making the market worse off. So it is one of the interesting crypto trends to follow in 2022-23.
Continuous Volatility in Bitcoin Prices
Despite its popularity and decentralisation benefits, the prices of Bitcoin, which is a leading cryptocurrency, have never gained a stable status. News, free-market forces and investors’ actions could be the reasons for high volatility of bitcoin. One of the main reasons for the volatility in Bitcoin’s price is decentralisation and actions taken by various governments against it.
The stabilisation of Bitcoin thus demands main things to come on streams like the smooth regulation, word-wide acceptance and global acceptability of the payment system.
With time, it is expected that Bitcoin will gain some stability. However, this cannot be put concreteness forthwith, so it is one of the hottest crypto trends investors should watch.
DeFi Growth to an Apex
DeFi eliminated the roles of banks and intermediaries based on secured distributed ledgers. It works on the core values of decentralisation similar to those of cryptocurrencies. You can read in detail about DeFi on Coindesk.
Since DeFi is still in its nascent stages, so there is still room for improvement in this application to the blockchain. There are certain problems involved like scalability, financial privacy and credit scoring.
The solutions are expected to be overcome as giant Fintech has expressed its interest in them. 2022 could be the year where the world can anticipate improved DeFi with better blockchain solutions.
Upcoming crypto expansions such as decentralised finance and decentralised autonomous organisations may be the most promising crypto growth sectors in 2022. The future of DeFi is seen as the widespread adoption of DeFi by Fintech companies, banks and governments.
In 2022, there will be greater demand for DeFi tokens, projects and platforms. This year, total investments deposited into DeFi services surpassed $200 billion for the first time, and experts predict that demand will rise higher before the end of 2022. So, it is worth observing this crypto trend and making the maximum out of it.
Incorporation of NFTs
NFTs are popular among artists and creators as it helps them get access to decentralised funding options. NFTs resolve the copyrights issues in a way that the source code remains intact, and the history of changing hands is embedded in the digital art asset. Whether you are a singer or a painter, you can earn on your own without the intervention of any intermediary.
To date, many organisations mint NFT tickets on a particular blockchain and sell them. The selling could be at a set price, or you can put them to auction to receive a competitive market price.
With the surge of the NFT industry, the virtual land acquisition concept has gained a boom and experts stand at the further rise in this trend soon.
Diving economic giants in NFTs could be the most epic development in the NFT industry for the upcoming period. It gives a chance to explore more ways to exponentially grow businesses and also lets them enjoy the benefits of the real-world utility of NFTs.
Big brands Nike, NBA, Coca-Cola and Taco Bell, have already been involved with NFTs. This gives confidence to more highlighted brands to explore the depth of the crypto NFT world in 2022.
Advancements in Web 3.0
The world is constantly developing new ways to invest in blockchain and cryptocurrencies, and Web 3.0 is the next big crypto trend. Blockchain technology is becoming more popular than ever before, and the internet is one of the distinctive places where it is expected to grow.
Web 3.0 is a new internet breed that strives to be the virtual world’s decentralised version. It is poised to become the basis for something much greater than the IT industry imagined. It aspires for transparency, and users will be able to access a limitless quantity of resources, content, and agreements in the future.
Users will be allowed to own content online, potentially putting internet behemoths like Instagram and YouTube out of business. Web 3.0 tokens are decentralised projects that will employ smart contracts to automate internet transactions.
Who doesn’t like winning and getting recognised for their actions? The popularity of GameFi has gone through the ceiling. GameFi effortlessly incorporates this.
In 2022, GameFi may provide the visibility that the crypto world needs. While some projects have compensated participants with non-fungible tokens (NFTs), others provide enough value for their users’ money and time. Everyone enjoys playing games, and the value to earn prizes that may be useful in the future will appeal to the people.
The usage of blockchain technology enables them to penetrate the larger crypto market, allowing virtual commodities to transact for genuine economic value. The Crypto MetaVerse is a virtual reality world with enormous social and financial potential.
Metaverse would be a key element in 2022 by integrating the immersive environments of Virtual Reality, the addictiveness of video games, the interactivity of social media, and the value propositions of crypto. So it is one of the hottest crypto trends that every game must bookmark for references.
Crypto Stablecoins Growth
A stablecoin is a cryptocurrency that intends to provide price stability. They are backed by a reserve asset. You can enjoy privacy and instant processing with the security of cryptocurrency payments. Besides that, they provide volatility-free stable solutions like fiat currencies.
Even though Tether’s most prominent stablecoin has its own legal issues, the stablecoin concept is still gaining traction. The entire market value of stablecoins is estimated to be more than $157 billion. To be sure, Tether accounts for almost half of this market. Stablecoins are often utilised in DeFi applications because of their relative price stability.
If someone wants to engage in a decentralised transaction, they don’t want the value of their capital to decrease due to momentary-term volatility.
Keeping a hawk-eye on crypto news and trends is a must-have for investors, traders and economists. A trader can take advantage of these factors to make more informed trading decisions. Similarly, economist and financial advisors put forth their statements based on the news trends. To keep up to date with crypto, you always need to get in touch with the industry. You can find the latest crypto trends using the Algory crypto news aggregator; it provides authentic global crypto news from the platform of your choice.