The beginning of a new year is a time of speculation about the future of the cryptocurrency market. The trends in 2021 were pretty clear, but will they continue in the new year?
DeFi has led the way so far
The DeFi sector has been a solid catalyst for growth in 2021. Projects under this sign have been recording dynamic moves, overwhelmingly upward. There was a lot of talk about them in the mainstream media. Unfortunately, not necessarily positively. The consequences of hacking attacks, which some of them had to face, were widely echoed. Technology development is based on process errors – it is inevitable. Thus, the motto “it doesn’t matter what they say, it matters that they say it” fits perfectly in DeFi. There are many indications that they will continue to talk, as a number of regulations of the sector are being prepared, which more and more countries are planning to introduce. This may fuel further recognition of DeFi and lead to further growth.
The sector that divides the market the most and at the same time causes a lot of speculation is NFT projects. This is a buzzword that has recently been breaking search engine popularity records, and increasingly becoming a tagline on social media. The race for expensive images and their ownership rights is gaining momentum. It definitely has a right to survive. The question remains whether its form will change. More and more voices are being raised about the risks associated with NFT projects. At the same time, however, their practical applications in industry are being implemented. An example is digital proofs of originality for clothing, which are increasingly being considered by well-known brands. Meanwhile, NFT is increasingly merging with another sector… the Metaverse!
That’s right – what about the Metaverse?
The coordination of the NFT sector with the Metaverse, may be crucial to the survival of the former. Imagine a business meeting in a virtual space. Dress, suit, shoes, office appearance…. These are essential elements for these kinds of “live” events. When they take place in a virtual space, they do not lose their importance. NFT is about creating an image in the Metaverse, which in turn, in the face of ubiquitous lockdowns, gains space for legitimate growth. This doesn’t just apply to business meetings, but also to simply spending time with friends. There are many indications that there is still much to be discovered, and perhaps even created, in the Metaverse. Will it be the black horse of the 2022 race?
From the Metaverse, it is close in turn to games, which are also gaining popularity. Here too, the mainstream media is setting the pace for their growth. The profits that can be made by playing Axie Infinity, for example, make many people dizzy. Who would not want to combine business with pleasure? Gaming and earning money is exactly that. Moreover, the gaming sector is highly developed and many manufacturers, despite being virtual world creators, are not yet connected to the blockchain. The room for growth here therefore seems to be huge.
A number of unknowns
The above sectors are some of the possible driving forces of 2022. However, we should remember that blockchain technology is still young and there is still a lot to be discovered. At any time, a new tier 1 project could emerge that will revolutionize the market. Similarly with tier two projects, which significantly lift many restrictions, building a number of bridges. The real “black horse of the competition” may therefore still be undiscovered.