A Glance of Crypto World in 2022 – Significant Happenings Traders can Expect in the Crypto Market
2021 was an incredible year for the crypto industry especially in November when the market value surpassed $3 trillion. Fast forward to 2022, crypto investors are anxious about what to expect in the crypto market.
In the first week of 2022, most cryptocurrencies have managed to remain stable but experts are keeping an eye on digital assets such as blockchain-based apps and non-fungible tokens (NFTs).
Just like last year, experts believe that these digital assets are set for another record-breaking year, therefore, advising the crypto traders to continue using the best trading platforms such as Naga Markets. This platform will not only enable you to trade and invest in cryptocurrencies but also in other financial markets.
Therefore, let’s look at some of the significant happenings traders can expect in the crypto market in the coming months of 2022.
Rise in the Non Fungible Tokens (NFTs) Activity
Introduced in 2021, non fungible tokens became a digital asset to reckon with as big companies such as Nike, Tacobell, and Pizza Hut are using NFTs in their businesses.
What’s more, major auction houses such as Christie’s and Sotheby’s have sold millions in NFTs to buyers worldwide looking to diversify their digital asset portfolios.
So why do companies spend cash on NFTs?
Because large amounts of people spend most of their time on digital platforms thus gives major brands an opportunity to market themselves in the metaverse.
In a new estimate, it was recorded that the digital platforms where NFTs are traded surpassed $40 billion in 2021. With more crypto traders expected to join the bandwagon NFTs value and demand are expected to continue growing in 2022.
Increase in Decentralized Finance (DeFi) Activity
In 2021, DeFi went through massive growth as the technology took financial services to the next level. Created to lower financial barriers, the technology enables users to freely purchase, sell, borrow, or lend cryptocurrencies such as Bitcoin and Ethereum.
With eCommerce sites and retail companies taking advantage of DeFi, 2022 crypto traders can only look forward to more amazing financial services.
Every cryptocurrency trader had knowledge of the ongoing war between Bitcoin and Ethereum. The second most valuable crypto on the market, Ethereum has fought to keep its second position after Bitcoin while still trying to reduce the market capitalization gap.
However, apart from the war between these two cryptocurrencies, experts are now keeping an eye on another crypto in the market, Solana. Officially launched in March 2020, Solana’s token got to increase its value from $1.59 in January 2021 to more than $250 in November.
That means Solana increased its value by more than 11, 000%, therefore, placing it as the fifth-largest cryptocurrency by market capitalization.
Currently holding the same position, Solana is still ahead of Ethereum when it comes to transactions as it can accommodate 700,000 transactions per second while Ethereum can only hold 15.
Note that, although Solace’s price has fallen since January, experts still believe it is a strong competitor to Ethereum.
Since the beginning of the crypto market, different experts have placed some predictions on how the crypto market will perform in the New Year and 2022 is no different. One of the biggest predictions was on Bitcoin reaching the $100,000 mark by the start of 2022.
Although that’s far from the reality as Bitcoin prices have decreased since the beginning of the year, crypto experts still insist it’s too early in the year to write off this prediction.
Other predictions for 2022 are that more businesses will accept cryptocurrencies as a means of payment thus leading to the increased market value of the cryptos.
As you know it is still early in the year to be certain how the crypto market will perform in 2022. As most governments tighten regulations when it comes to cryptocurrencies as well as other digital assets, crypto traders can only hope for a serious jump in crypto prices in the coming months.