The blockchain space continues to evolve and grow at an impressive rate only months into 2022. What’s more interesting is that the industry has shown no signs to slow down, even when other industries in the global economy are showing signs of strain due to the pandemic and war between Russia and Ukraine.
We’ve seen the digital currencies like Bitcoin and Ethereum hit several high prices instigating the government to look into setting regulations and policies for cryptocurrency. At the same time, the people’s interest in buying crypto is skyrocketing. Both investors and pop culture are outing immense focus in blockchain and the potential it has.
While precise estimates are impossible, there are probable events that may happen in this space for the rest of the year. Here are 5 predictions regarding crypto, blockchain, NFTs, DeFi and more.
1.Decentralized Finance (DeFi) Goes Mainstream
DeFi can be understood as an emerging financial technology founded on safe disseminated ledgers, comparable to ledgers used in cryptocurrencies. In essence, the DeFi system will remove the monopoly banks and other financial institutions have on finances, financial services and financial products.
Despite being in its early days, its expected for DeFi to go mainstream in 2022 as more people are escaping the current financial monopoly. More people are using DeFi products like borrowing platforms, wallets, exchanges and lending platforms.
2.Growth of NFTs
Non-fungible tokens (NFTs) have been in existence since 2010. However, they recorded immense popularity in 2017 and have shown steady growth since then. Today, NFTs make up the largest buzz in the internet today. It is probable that the best is yet to come as some hurdles are still preventing development of NFTs. For a wider adoption, some things need to happen.
For status, the user interface for NFT platforms requires to be more available for other people to participate. Secondly, NFTs need to be useful outside the digital wallet space. For example, when other industries like the art world adopt NFTs, then they will become more valuable, even to non-NFTs participants. For example, NFTs can play roles in esports, sports ticketing and loyalties.
3.Growth of Ethereum
The blockchain space is still dominated by Ethereum. As popularity in cryptocurrency increases, we can expect a steady growth of Ethereum as the year progresses. More investors and people will rely on Ethereum as they make deals using the digital currency.
As mentioned earlier, the government has shown interest in regulating the cryptocurrency industry. Other financial institutions may also come up with crypto regulations in line with government activities. For example, the IRS is keen on ensuring investors know how to record their virtual currency as they file their annual taxes.
5.Growth of Bitcoin (BTC)
BTC will continue to grow and develop as more institutions adopt and own the currency. This is in line with the growing digital asset market. In turn, these companies will need to adopt BTC as an asset and even a revenue generator for their company. An advantage to this new system is that companies will avoid some of the adverse effects of entirely relying on the World Bank or IMF for debt assistance.
The blockchain space is only at its initial stages of growth. Therefore, there is a lot to expect as the year progresses. The above predictions may only be a tip of the iceberg So, keep watch for more updates regarding this new digital space!