Along with Blockchain technology, cryptocurrency has gained massive attention, so what are the trends?
2021 was the peak of digital currency development. Both Ethereum and Bitcoin reached an all-time high market price late last year. This new year may bring even bigger changes in Blockchain and Cryptocurrency.
While it is impossible to predict exact shifts, we have compiled expert opinions on Cryptocurrency trends in 2022 to help you navigate this market. Find out down below.
>>>Read more: Expected Trends Of Blockchain In 2022
Table of contents
I. Cryptocurrency legal status
For a long time, law-makers have been wary of digital currency’s decentralized nature. In fact, 51 countries around the world have imposed implicit or absolute bans on digital currency. In other words, governments are prohibiting banks from offering cryptocurrency trading services, or banning it altogether.
However, the reality is that more and more people are investing in crypto, and governments are starting to take notes. El Savador have adopted Bitcoin as legal tender, making the currency an accepted means of exchange for goods and services. This South America country can be the first domino to fall. Investors worldwide can expect loosened regulations on cryptocurrency, at least in some developing countries.
II. Large financial institutions and cryptocurrency
In 2019, Bank of America’s Chief Executive Brian Moynihan banned wealth managers from putting any client money into cryptocurrency-related investments. No more than two years later, in October 2021, this giant company released a 140-page report which states digital assets are “a blossoming class of asset that are becoming too hard to ignore”. Furthermore, Blockdata found that 55% of the world’s 100 biggest banks are investing in companies and projects related to digital currencies and Blockchain.
It is easy to understand why financial institutions are turning towards digital currency. The cryptocurrency market has reached $2 trillion, and almost every investor – including the largest financial institutions are racing to get a piece of that pie.
III. The booming of play-to-earn games
Cryptocurrency is closely related to Blockchain-based play-to-earn games. Play-to-earn crypto games reward users with digital currency, then users can trade or withdraw to hard cash. It is mind-blowing to realize people are buying real-world assets with in-game tokens.
Axie Infinity is the best example in this case with over 8 million players in 2021 and an expected 10 million by 2022. Other famous games like The Sandbox and Monster Clan are also gaining increasing number of new players every month. The development of these games is driving cryptocurrency growth. Stefan Altejevic – founder of CryptoBlokes – says an average player is bringing in $50-400 per day, which is decent income for citizens of developing countries like the Philippines.
However, we are only at the beginning of the journey, and seeing that a lot of play-to-earn games turn out to be scams, investors should be wise and informed before making any purchase decision. What happens next is unpredictable, but we can safely assume that play-to-earn games will only gain more attention in the future, making cryptocurrency one of the hottest investing tools worldwide.
To understand more about Blockchain, NFT and Cryptocurrency, head over to our related articles:
>>>Read: Applications of Blockchain to Financial Services
>>>Find: Forecast the development of NFT in 2022