10 predictions regarding the cryptocurrency market for 2022

10 predictions regarding the cryptocurrency market for 2022

Coinbase Chief Product Officer (CPO) Surojit Chatterjee provided 10 cryptocurrency market predictions for 2022, which we report below

1: Ethereum scalability will improve, but new L1 chains will see substantial growth
As millions of new users enter the crypto and web3 industries, the scalability challenges for ethereum are likely to grow. But Chatterjee is optimistic about ethereum’s scalability improvements with the emergence of ethereum2 and many L2 roll ups, yet he is also confident about solana, avalanche and other L1 chains. In addition, there will be new L1 chains emerging with a focus on specific use cases such as games or social media.
2: There will be significant usability improvements in L1-L2 bridges
According to Chatterjee, as more L1 networks gain traction and L2s grow larger, the crypto industry will desperately seek improvements in the speed and usability of cross-L1 and L1-L2 bridges. There will be interesting developments in the usability of the bridges in the next year.
3: Zero-knowledge-proof technology will get more traction
2021 saw protocols like ZkSync and Starknet begin to take hold. As L1 chains become clogged with increased usage, ZK-rollup technology will attract the attention of both investors and users. A new privacy-focused use case will emerge, including privacy-safe apps and game models that have privacy built into the core. This could also lead to more regulatory focus on cryptocurrencies as KYC / AML could be a real challenge in privacy-focused networks.
4: Regulated Defi and the emergence of on-chain KYC certification
Many Defi protocols will embrace regulation and create separate KYC user pools. Decentralized identity and on-chain KYC attestation services will play a key role in linking the real identity of users with the endpoints of the Defi wallet. There will be greater acceptance of ENS-type addresses and new systems will emerge from cross-chain name resolution.
5: Institutions will play a much more important role in participating in Defi
Institutions are increasingly interested in participating in Defi. For starters, institutions are attracted to above-average interest-based returns compared to traditional financial products. Furthermore, the reduction of costs in the provision of financial services using Defi opens up interesting opportunities for institutions. However, they are still reluctant to participate in Defi. The institutions want to confirm that they are only transacting with known counterparties who have completed a KYC process. The growth of regulated Defi and on-chain KYC certification will help institutions gain trust in Defi.
6: Defi insurance will emerge
As Defi proliferates, he also becomes the target of security hacks. According to London-based firm Elliptic, the total value lost from Defi exploits in 2021 was over $ 10 billion. To protect users from hacks, valid insurance protocols will emerge in 2022 that guarantee users’ funds against security breaches.
7: NFT-based communities will compete with social networks
NFTs will continue to expand in the way they are perceived. NFTs will become the next evolution of digital identity and users’ passports to the metaverse. Users will congregate in small and diverse communities based on the types of NFTs they own. User-created metaverses will be the future of social networks and will begin to threaten the centralized versions of today’s advertising-driven social networks.
8: Brands will begin to actively participate in the metaverse and NFTs
Many brands are realizing that NFTs are excellent vehicles for brand marketing and establishing brand loyalty. Coca-Cola, Campbell’s, Dolce & Gabbana and Charmin released NFT collectibles in 2021. Adidas recently launched a new metaverse project with Bored Ape Yacht Club. There will be more exciting brand marketing initiatives using NFT. NFT and the metaverse will become the new Instagram for brands. And just like on Instagram, many brands can start as NFT natives. There will be far more celebrities jumping on the bandwagon and using NFT to enhance their personal brand.
9: Web2 companies will try to join Web3
Facebook is already trying to reformulate itself as a Web3 company. So there will be other large Web2 companies dipping their toes into Web3 and metaverse in 2022. However, many of them are likely to create centralized, closed network versions of the metaverse.
10: Time is ripe for DAO 2.0

DAOs will become more mature and mainstream. More people will join DAOs, pushing a change in the definition of employment – never receiving a formal offer letter, accepting tokens instead of or alongside fixed salaries, and working in multiple DAO projects at the same time. DAOs will also face new challenges in terms of understanding how to do M&A, manage payroll and benefits, and coordinate activities in increasingly larger organizations. Regulators will take a greater interest in DAOs and will attempt to educate themselves on how DAOs work.

COMMENT

They ignore the cryptographic crisis and the ability to reveal all encrypted information.
Not only with quantum computers but also with hacker attacks, as explained on this site and on the site www.technosolution.org