In 2021, when bitcoin finally went public, it was the most significant year in its history. Not only did certain tokens skyrocket, with Bitcoin increasing by 60%, Ethereum by 400%, and Binance Coin by 1,300%, among others. The key drivers were innovation and integration in the DeFi, NFT, and Metaverse realms, as well as the broad adoption of cryptocurrency by institutional investors, enormous corporations, and even governments, including El Salvador’s adoption of Bitcoin as legal cash.
Many factors, including the fact that several well-known personalities, including Elon Musk and Eminem, have publicly declared their support for the creation of cryptocurrency wallet apps, point to 2021 being the most significant year in history. What occurs in 2022, then?
Cryptocurrency has a lot to live up to, and while no one expects a repetition of 2018, the market might find it difficult to replicate the astounding gains of the previous year. As we begin the new year, there are still many promising developments in the cryptocurrency industry to keep an eye on.
DeFi yield farming’s advancement also lays the way for more complex and possibly lucrative financial solutions. For instance, Synthetix creates artificial assets in the form of ERC-20 smart contracts that track and provide returns on investments in the creation of cryptocurrency wallet apps without requiring the token to be held by the owner. With SynFutures, a related project, users can create and exchange cross-chain and off-chain assets based on Ethereum.
These kinds of DeFi schemes have the benefit of giving you access to resources that ordinary investors don’t have, and they can assist you in gaining a significant amount of money if you can anticipate changes in the market.
Sales of non-fungible tokens exceeded $20 billion in 2021, drawing attention to them. Bored Ape Yacht Club and CryptoPunks NFTs saw hundreds of multi-million dollar transactions lead the way, with a single JPG by artist Beeple going for a record-breaking $69 million.
NFTs are unquestionably here to stay, despite the hype and high costs. They have far too many applications, including those in asset tokenization, the arts, real estate, and gaming, to name a few. The advantages of using NFTs are also evident, such as the ability for musicians and artists to include automated royalties in the sale of their works. Meanwhile, by employing NFTs to fractionalize private ownership, real estate sellers can contact millions of potential customers.
It suggests that the future of NFTs and the markets that trade them is bright. Right now, OpenSea is the undisputed market leader, representing more than 60% of all 2021 sales. On the other side, it is anticipated that decentralized platforms like Infinity will grow in popularity. A distributed NFT market called Infinity seeks to surpass OpenSea by more accurately capturing and portraying the demands of the neighborhood.
Infinity is collaborating with Common Protocol to transition to a direct governance model and make it quicker and less expensive to list NFTs by levying a 1.5 percent transactions charge that goes to the neighborhood treasury.
The Metaverse’s most important year
By 2022, the Metaverse will have expanded to become a significantly larger part of our culture and economy thanks to its dynamic character as a facilitator of social interaction, recreation, commerce, commerce, gaming, and instruction, to name a few uses.
The Metaverse holds a lot of potential as a virtual environment that mixes vr headsets, smart glasses, and video to enable users to interact with virtual avatars. It will usher in a new age in which our physical and digital lives become more linked, making connectivity easier and making each of our online interactions more realistic.
Despite Mark Zuckerberg’s strong backing, Facebook won’t have a monopoly in the Metaverse.
On the other side, fully decentralized metaverses will pique people’s interest. We’re talking about online environments where NFTs can be used to buy virtual property, such as The Sandbox and Decentraland. Another exciting Metaverse development is play-to-earn gaming.
DEA is building an entire virtual society around its Fun Mining platform, which enables players to discover different worlds, engage in combat and other game tasks, earn in-game currency, and then exchange it with other players.
It’s possible that the Metaverse is still in its infancy, and no one can predict how significantly it will influence how people engage with technology. In any case, the Metaverse and its development over the following ten years will be sketched out in 2022, with implications for how people interact, work, unwind, and play in the virtual world.
Expand the number of legs on Web 3.
All indications point to 2022 as the year when a Web3 environment will be created as a result of the interaction of DeFi, NFTs, and the Metaverse.
The evolution of the internet, which started with Netscape and AOL’s static Web1, continues with Web3. Then came Web2, which was much more exciting but was still driven by large corporations like Google and Facebook. Web3 allows for the complete decentralization and permissionlessness of the internet while giving individuals back control over their data.
For the benefit of their communities, DAOs ought to cooperate.
Decentralized autonomous organizations (DAOs), which are community-led organizations designed for a variety of purposes, including investing, fundraising, tokenized wealth management, and transparent governance, had a strong year in 2021.
The GoodDollarV2 release in December raised the bar for UBI distribution. A crypto-based UBI is created for the entire community by employing yield farming and liquid mining rewards to ensure a steady flow of money into the protocol. As 2022 draws nearer, more DAOs may start cooperating for the benefit of their communities.