Cryptocurrency Trends are evolving at an incredible pace and more crypto assets are coming to the market every day.
According to CoinMarketCap, there are over 1600 CryptoCurrencies currently in circulation that hold a combined market cap of USD $220 Billion USD.
Given the upcoming trend, it’s safe to say that this number will only continue to grow in the future. In this article, we will explore cryptocurrency trends you can’t miss from tomorrow’s perspective.
1) Stronge Regulations Will Open the Market to Institutional Investors
Both China and South Korea are among countries that have enforced strict regulations on cryptocurrencies.
This move has affected cryptocurrency exchanges like Huobi, OKEx, and Binance by disallowing them from trading certain cryptocurrencies and ICOs in their respective markets.
While these regulations have greatly reduced investor interest in these exchanges, we predict an uptick of new cryptocurrency development companies in India over time as these companies strive to list more compliant coins.
2) Regulatory Oversight Will Increase Investor Confidence
Authorities in Asia and South America will move to increase regulations governing cryptocurrency exchanges. This increased regulatory oversight will give consumers confidence that their exchanges are safe. As a result, more investors—both individuals and institutions—will begin buying cryptocurrency.
It is unlikely that investors will be able to buy large amounts at first; institutional investors tend to be comfortable moving only tens of millions of dollars at a time because it can take months to see results from an investment like that.
3) Secure Exchanges and Custodial Services Will Become More Common
The rise of cryptocurrencies has given consumers new ways to buy and sell goods and services, but it’s also introduced a lot of new challenges. Cryptocurrencies are highly speculative, so exchanges that allow trading between them tend to be vulnerable to hacking attempts.
Similarly, custodial services that provide safekeeping can be targeted by hackers. As cryptocurrency becomes more popular, these companies will have to invest in security infrastructure to stay competitive.
Consumers who value their privacy may start moving away from centralized cryptocurrency exchanges and other custodial services in favor of decentralized solutions.
4) New Exchange Services Will Compete With Established Players
It’s always easy to compare today’s situation with a previous one and predict what will happen in five years. However, we shouldn’t forget that many other exciting developments can occur in just five years, especially regarding technology-driven markets.
A trend that I would keep an eye on is how new exchanges will compete with existing players. If you go back eight years or so, Facebook competed with sites like MySpace and Friendster. Today, Facebook has become a ubiquitous part of our lives.
The same could be said about Amazon versus eBay—or Uber versus traditional taxi services. In these cases, newer companies have managed to disrupt established market leaders by offering better products at lower prices. That same phenomenon could easily play out in crypto as well—and there are already some early signs that we’re seeing it already (e.g., Coinbase vs Gemini).
5) Wall Street Firms Will Start Crypto Trading Desks.
Even though cryptocurrency markets are down right now, that does not reflect their long-term value. Blockchain technology is here to stay and likely will play a significant role in reshaping our financial world in years to come.
With that in mind, Wall Street firms like Goldman Sachs and Citigroup have taken steps toward creating cryptocurrency trading desks over 2022. This trend will only increase as more investors realize cryptocurrencies are here to stay.
6) Future Crypto Startups Will Focus on Business Use Cases Instead of ICOs
The ICO, or initial coin offering, is a controversial crowdfunding method that saw a dramatic rise and fall in 2022.
In-house crypto funds will dominate institutional investment: Institutional money has been slow to enter cryptocurrency markets due to regulatory concerns and market volatility.
However, once institutions enter, they will likely allocate significant funds towards trading crypto and identifying emerging opportunities in crypto startups.
7) Tokenization of Real-World Assets Will Proliferate
As crypto becomes more mainstream, expect to see people tokenize real-world assets. Companies will allow you to invest in everything from a real estate portfolio to a professional sports team or music label.
That’s because these things will be easily tradable—and far easier to trade than if an illiquid stock or non-tradeable bond represented them. Tokenization also allows companies to create new markets that didn’t exist before.
For example, it might be possible for someone who lives on one side of town but works on another side to rent out their home while at work. Tokenizing their home could give them access to a new market that wasn’t previously available (commuters who need temporary housing).
8) Most tokens on Ethereum Will Migrate to Other Blockchains
As more decentralized applications are built on Ethereum, an increasing number of tokens will become unnecessary on its native blockchain. At that point, they’ll likely move to other blockchains like Cosmos or NEO that offer services similar to Ethereum but with better performance.
This shift will make it harder for Ethereum developers to build DApps, since most rely on existing tokens as functionalities in their apps. For example, a developer may want to create a decentralized exchange on Ethereum.
In order to do so, he would need all ERC20-compliant tokens (i.e., Golem [GNT], Augur [REP], Basic Attention Token [BAT]) to provide token holders with their utility functions—since each ERC20 token is unique and can only be used by one project.
9) Interoperability Between Blockchains Will Occur, With XRP as a Bridge Token.
Many blockchains help to solve specific problems, such as remittance. XRP could act as a bridge asset between currencies in different blockchains and facilitate value transfer between assets. Imagine a user on chain A wanting to send $10 worth of tokens to someone on chain B.
The sender would need to buy $10 worth of XRP before sending it over to chain B, where they can exchange it for their desired currency. This process would require two transactions instead of one, with XRP acting as an intermediary currency.
10) The Top 20 Coins by Market Cap Will See Significant Price Gains.
A major correction in 2022 sent crypto markets down 70 percent from their all-time highs. A recovery is expected, but some experts think that coins that made significant gains during 2022 will see prices fall by more than 50 percent.
Even if you are a crypto believer, it’s worth taking steps to prepare for a correction and a bull market. The most important thing you can do is be sure to allocate your money properly across different types of cryptocurrency investments.
Read Also: Top 10 Web Application Frameworks To Help You Stay Ahead of the Curve
Conclusion
So these are the top 10 cryptocurrency trends you can’t afford to miss in 2022. Cryptocurrencies are a new form of currency and investment. They are encrypted digital currencies whose monetary value is based on cryptography. Countries like Japan, Russia, and Australia accept cryptocurrencies as legal tender.
Many experts say that cryptocurrencies have many positive impacts on society, including greater financial inclusion, reduced remittance costs, increased economic activity in developing nations, more efficient use of energy resources, and mitigation of wealth inequality issues.
You can get in touch with the top crypto exchange development company in India to know more about the latest trends in cryptocurrency.
