While the crypto market has experienced an incredibly volatile year, it has also seen significant price hikes and sustained growth over the course of the previous 12 months.
To this end, the wider cryptocurrency market has seen its total market cap value fluctuate between $2.4 and $3 trillion, while further growth is forecast across a range of currencies in 2022 and beyond.
In this post, we’ll appraise some of the leading crypto trends for 2022, while asking why assets such as Bitcoin (BTC) are so popular.
Why is Crypto So Popular?
There are numerous reasons why this market is so popular, including both universal factors and those that relate to the real-time market conditions.
In terms of the former, cryptocurrency is underpinned by innovative blockchain technology, which creates decentralised ledgers and tokens that are completely immune to third-party manipulation.
As a result of this, cryptocurrencies aren’t controlled by central banks, creating completely immutable records and transactions across the board.
When it comes to the live market conditions, it’s also fair to surmise that crypto assets like BTC have seen their value appreciate markedly over the course of the last 18 months. This long-term growth has been sustained despite perpetual bull and bear runs, suggesting that the token has increased value as a so-called “buy-and-hold” asset.
Crypto also remains enduringly secure, making it ideal for both casual users and investors who want to manage their capital online.
Key Crypto Trends for 2022
OK, we hear you ask, but what are the key crypto trends for 2022? We’ve broken down three of the most prominent and impactful below:
● #1. Increased Adoption Within the Traditional Financial System: In September of this year, El Salvador became the first nation to adopt BTC as legal tender. While other nations are looking to create their own crypto assets that are backed by central governments, there’s no doubt that we’re likely to see more countries incorporate some form of crypto into their existing financial models. This will increase adoption rates within the system, while driving greater familiarity and trust among potential users.
● #2. More Use Cases Will Emerge From Crypto: 2021 has also been a banner year for non-fungible tokens (NFTs), with the aggregate value of such entities in the art market totalling a whopping $774 million. This is the latest use case for blockchain technology, and one that enables users to create unique digital art that can never be forged. This is part of a wider trend, and next year will undoubtedly see blockchain help to create new digital applications and improve existing processes across a broad range of industries.
● #3. Increased Trading Activity: Cryptocurrency tokens can be traded in the financial marketplace, and there’s no doubt that assets such as Ethereum and Litecoin will join BTC in being highly popular among investors through 2022. What’s more, a growing number of online trading platforms are now offering access to crypto assets, including third-generation coins that have the potential for marked growth in the months and years ahead.