After a healthy year that saw peak prices for some popular cryptocurrency, 2022 holds many predictions for the next 12 months. Will the year see the increasing rise of meme coins, or will established options continue to reign supreme? There will always be some surprises, and after a year that saw Coinbase IPO listed on NASDAQ attracting investors, what will the new year have in store? Here are a few developments we could see in 2022.
Alternative cryptocurrencies, or altcoins, may see further interest across the year thanks to the rise of the memecoin in 2021. Seen as a less-serious option in their early days, the outlook has changed and saw well-known options like Dogecoin experience peak growth and newer cryptocurrencies to enter the market. The mass appeal of memecoins means digital currency like Floki Inu is capturing the imagination, riding on the power of memes whilst growing a community of regular people rather than venture capitalists. Everyone likes an underdog, so will the older breeds like Dogecoin make way for newer altcoins, or will they continue to perform in 2022. The popularity of memecoins is sure to not wane in the foreseeable future.
Providing a new way for gamers to interact and transact with creators, crypto-gaming is expecting to make big waves this year. With the metaverse a concept that is becoming more mainstream, having a centralized hub using blockchain technology to buy, sell or trade instead of traditional monetary formats is becoming more widespread. Where it was an option with casino-style games over the last few years, 2022 could see the beginning of a push into the video-game industry and more mainstream use. With NFTs continuing to have their moment, gamers are more aware of the concept even if they had little knowledge of cryptocurrencies before. Many digital currencies are building their own metaverse and marketplaces to spend coins gained through PlayToEarn games, so expect more to come from them as well as the mainstream gaming companies.
Decentralized finance is all about providing further options to users for their money, and DeFi applications will continue to rise in 2022. From borrowing to lending, they provide an alternative to traditional banks and lenders using blockchain, running similar to P2P lending options where users can lend to one another cryptocurrency. As they can sometimes offer lower interest rates and fewer requirements to apply compared to banks, they are an appealing option and help those who lend earn interest. Whilst not without its risks, users can even use NFTs as collateral to borrow cryptocurrency. The next 12 months could see more products such as savings enter DeFi and provide somewhere for NFT and other online creators to buy and sell.
Central Bank Digital Currencies
Whilst long expected that the traditional banks would make a move into digital currency, 2022 could be the year of seeing this emerge. If you can’t beat them, join them, and with cryptocurrency becoming ever more mainstream, central banks will eventually offer their own versions. Many countries around the world have plans to launch in the next few years, including China with its digital yuan. The big question is when will the US and UK and other European countries will enter the fold. With more large businesses and corporations accepting cryptocurrency payments for goods and services, a huge buy-in from central banks and financial institutions is on the horizon.