Crypto world including DeFi, NFTs, metaverse and digital currencies continues to surprise us. The tremendous expansion and adoption of crypto assets has garnered much attention throughout and people look up awaitedly to further advancements and predictions in this sector.
Chainalysis, a blockchain data platform, published a comprehensive report on the cryptocurrency predictions for 2022 in February. We present to you the most important details of the report.
Here’s a look at the predictions that could matter to crypto enthusiasts and investors alike:
1) Governments will be friendlier to crypto
The year 2021 was a decisive year for the crypto sector when it infiltrated mainstream with a booming growth. This drew the attention of several countries who started working towards regulating the crypto framework to manage it better.
* At the Chainalysis policy roundtable constructive bipartisan discussions on digital assets in December 2021, the viewpoints of US Congress and Treasury were sought on this matter.
* Three of the US Congress members, Jim Himes, Tom Emmer and Cynthia Lummis advocated for cryptocurrencies and showed faith in its promise and potential.
* Himes said “The blockchain, in particular, is super intriguing as a way of disintermediating an almost medieval way of doing things around titles, contracts, and ownership.”
* Co-Founder and CEO of Chainalysis Michael Gronage said that the growing support of US legislators for cryptocurrencies would closely mean promoting it.
* He said that in 2022, more countries will endorse crypto as they see in it an opportunity to create jobs and other forms of value.
2) NFTs will stay in the crypto market
Non Fungible Tokens (NFTs) find presence now not just in digital art but community platforms, events and ticketing and transform majorly the interaction between digital and real world.
* The NFTs succeeded in capturing a significant market, with Ethereum smart contracts associated with the technology earning more than $43 billion in 2021.
* The Chainalysis found that the NFT boom was a worldwide phenomenon, as no one region made up for more than 40% of monthly web visits since March 2021.
* The blockchain firm concluded that the NFT market will evolve this year, as many more artists, creators, celebrities, and even video game makers launch collections catering to their fans, along with many other use cases that haven’t even been invented yet.
– Chainalysis Economist Ethan McMahon looked closely at NFT activity and believes this to be the first step of many as the technology is adopted further.
3) Crypto will be vital to law enforcement investigations
As opposed to the infamous notion about the cryptocurrencies being a facilitator of illicit activities and money laundering, Chainalysis verified that in 2021, only a meager 0.15% of cryptocurrency transactions were associated with illicit activities.
* The untraceable and anonymous transactions in cryptocurrencies are considered to be a problem but they could solve many forms of cybercrime.
* It can be used by the law enforcement professionals for investigating crimes where cryptocurrencies have been used with the right use of blockchain technology and other tools.
* Chainalysis’ Public Sector CTO and retired FBI agent, Gurvais Grigg said that crypto-related Illicit activities would continue.
* However, increase in global adoption, law enforcement education, business cybersecurity investment, will lead to recognition of cryptocurrency as a necessary tool for combating such crimes.
4) Whoever creates the one-well-built app first will win
The crypto space embodies NFTs, cryptocurrencies and DeFi world, each of which have their own unique and considerable market. The task however is to bring a single centralized platform or a super app where users can get to interact with all these three worlds together easily.
* Chief Economist for Chainalysis Philip Gradwell opined that many of the largest companies in the industry are already working on it.
* The one who is able to develop such a superapp first will likely have an edge over competitors, and will totally own that one well-built space much preferred by the users.
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