Blockchain will be like in 2022

The blockchain market in 2022 will revolve around regulatory issues, DeFi developments, coin meme, and “crypto winter” predictions.

The blockchain market in general and cryptocurrency in particular has had a tumultuous year. Bitcoin – a cryptocurrency based on blockchain technology – experienced several deep price corrections but quickly regained momentum. Currently, the value of Bitcoin has increased by nearly 70% since the beginning of 2021, according to CNBC .

Blockchain is not only applied in the field of cryptocurrencies but has extended its influence to many other fields. However, experts also warn of a recession in 2022.

‘Crypto Winter’

Carol Alexander, a professor at the University of Sussex, thinks that the Bitcoin price could plummet to $10,000 in 2022 and almost wipe out all of its gains over the past year and a half.

“In 2018, Bitcoin dropped to almost $3,000 after climbing to a high of nearly $20,000 a few months earlier. If I were an investor, I would think about getting out of Bitcoin because its price is likely to fall deeply. in 2022,” Alexander told CNBC .

Meanwhile, according to Ms. Lynn Hoang, Director of Binance Vietnam, the cryptocurrency market cycle with a rotation every 3-4 years is undeniable. However, the “crypto winter” may come but it will be very different and not last as long as 2018.

“Cryptocurrency investors are not just individuals now like four years ago. They are large financial groups, companies and investment funds. Last year, it was estimated that more than $30 billion was raised. pouring into the market this year’s ‘winter’, if it ever comes, will be a positive purge. Unsustainable and poor quality projects will be eliminated. both the copper and the market,” explained Ms. Lynn Hoang.

Experts predict that the cryptocurrency market will have great fluctuations in 2022. Photo: Monexsecurities.

Similarly, optimists say that this year’s “winter” is different as more and more big names join in. Mr. Phan Duc Trung, founder of Blockchain Universal Forum, said: “With Facebook, Microsoft… realizing metaverse ambitions and big brands like Nike and Adidas entering the crypto space, could see more investment coming into the market this year. That bodes well for the crypto market in 2022.”

The Rise of DeFi

In recent years, Bitcoin’s share in the cryptocurrency market has been steadily decreasing, leaving room for something else like Ethereum. Experts predict this trend to continue into 2022. University of Sussex Professor Alexander told CNBC : “As retail investors realize the dangers of trading Bitcoin, especially on physical locations point unregulated, they will move to other coins on the blockchain in the decentralized finance (DeFi) system.”

Bryan Gross, network manager at crypto platform ICHI, also believes that emerging DeFi systems will be a thriving area of ​​crypto for the year. DeFi is part of a larger trend in the future of Web3 , or the third phase of the Internet. This is the stage where data on the Internet is decentralized, not influenced by administrators. This trend is supported by many technology billionaires, but there are also other billionaires like Elon Musk, Jack Dorsey are skeptical.

Nils Gregersen, founder of Paycer UG, thinks 2022 will be a boom year for DeFi. “We’ve only seen the tip of the iceberg. There are so many new products coming out that we can’t even imagine today,” Gregersen told Forbes .

Ava Labs President John Wu also made a similar prediction. Forbes quoted Wu as saying, “DeFi will continue to lead in terms of total value in the ecosystem, but blockchain gaming will also bring more people to crypto.”

According to analysts, blockchain games are considered a subset of the metaverse because most of the game developers in the blockchain world are building their ecosystems to be more connected to the virtual world. Metaverse is in its infancy. Therefore, investors will continue to pour money into the market in 2022.

NFT, the explosive coin meme

Some market analysts forecast that this year, NFT will continue to boom. According to Ms. Lynn Hoang, after popularizing in the fields of games and art, NFT will quickly spread to many other areas of life.

Meanwhile, the coin meme, the most controversial topic of the past year, is still a mystery. Forbes assesses this as just a temporary trend. The meme coin pumped blow by celebrities such as Elon Musk will quickly be brought to the true value. On the contrary, many believe that the coin meme has crossed the line as a joke in the crypto market and built a niche of its own. On the bright side, the coin is a good vehicle to bring more people to the cryptocurrency and blockchain market at a low cost.

Legal story

Analysts around the world say that 2022 is a big year on the “legal front” of applications based on blockchain technology, such as cryptocurrencies, NFTs, blockchain games.

Last year, China banned all activities related to cryptocurrencies. The US also introduced tighter regulations on the market. Last week, the Korean government asked Apple and Google to remove NFT, or P2E (play for money) games from the app store in the country.

But in another aspect, the fact that governments make specific regulations is also a good stepping stone for the market to develop stably and in the right direction, helping users avoid fraudulent projects.

According to Mr. Phan Duc Trung, in Vietnam, developers should not only focus on GameFi or NFT but should pay attention to the overview of the legal framework of the blockchain economy, including digital assets. “In fact, this is a difficult issue for legislators, but we can learn from the experience of neighboring countries such as Singapore, Thailand or Japan,” Trung said. “Blockchain startups need to stick to regulations, do things that aren’t prohibited by law.”

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