I thought I would paint one vision of what might be in store for cryptocurrencies in 2022. Most of this is just an extrapolation of where were are today + a generous dose of hopium. Take it with a large pinch of salt!
More and more people will get into cryptos
Crypto has had a great ride in 2021 when it comes to adoption. Most of this adoption has been in winning over financial institutions. In 2022, crypto will become an investment vehicle for the masses. This will be spearheaded by banks acting as custodians and offering crypto based investment portfolios to their customers.
As the realization that blockchain is disrupting business models seeps into the public consciousness, altcoins will be viewed as investment in tech startups. As a result the correlation between altcoins and Bitcoin will breakdown and greater emphasis will be placed on the fundamentals of each token. Good projects will receive substantial investment while lesser projects will flounder.
As more and more people start to interact with DeFi and staking, scalability and usability will become critical issues. DeFi experiences that are easy and cheap to use for the ordinary person will become important.
Digital identity will become important
The traditional world the crypto world will continue to come together and be unified through regulation. A key part of this will be KYC and AML laws. DeFi solutions that blend in KYC will become important.
This will give rise to the importance of digital identity solutions that allows for verification while maintaining privacy.
Low energy coins will become important
The energy usage of cryptocurrencies will receive a lot of attention. POW will be viewed as wasteful and POS will be seen as a favorable alternative by lawmakers.
NFT 2.0 will develop
NFTs will be used to tokenize and fund music, film, and games development with holders getting a slice of the revenue.
NFTs will move on from being associated with low quality jpg images to high quality artwork. The first ever art galley to physically show case digital NFTs will launch.
Layer 1s will become invisible
Layer 1 blockchains will increasingly be seen as infrastructure that DApp developers care about but DApp consumers are oblivious to. Alternatives to the EVM operating system will become popular similar to iOS and Android today.
The same DEX will exist on multiple blockchain platforms and liquidity will be aggregated across them.
Real world governance and Crypo governance will intermingle
The first ever governmental election recorded on a blockchain will happen in 2022. This will pave the way of governance of all sorts moving onto the blockchain from housing boards to stockholder voting.