2021 has been a momentous and action-packed year for the cryptocurrency industry. Bitcoin attained new heights, with its price going up by nearly 70 %. Ethereum also had a fantastic year with some robust gains, on some occasions much better than Bitcoin. As per Investopedia, Bitcoin continues to be the leader among the entire pack of cryptocurrencies, as far as parameters like user base, market capitalization, and popularity are concerned. The NFTs or Non-fungible tokens have become far more accessible to mainstream artists and retain investors. Metaverse, an integral part of the cryptocurrency world, became far more popular. Everybody witnessed a few record land deals through the year in the Metaverse. Its name was changed by Facebook to Meta and is currently the pioneer in creating the virtual universe. Investors seem to be waiting eagerly to see what 2022 has in store for the cryptocurrency market. The New Year is expected to be a successful and eventful year, as far as, the cryptocurrency market is concerned. Robust market trends that started in 2021 will probably continue in the year to follow. The cryptocurrency industry will be witnessing a boost in the total number of participants in the crypto market. Let us explore some of the Cryptocurrency trends that are expected to dominate the scene in 2022.
Crypto Regulations Will Continue To Be In Focus
Regulators worldwide assessed how cryptocurrency had been impacting the economy throughout 2021. The Central banks from several nations have been warning of financial stability risks from cryptocurrency. The crypto industry witnessed tremendous regulatory action throughout 2021. Right from the adoption of Bitcoin, by El Salvador, as essentially a legal tender to the ban imposed by China on crypto-associated activities, 2021 witnessed quite a bit of legal action. The trend is very much expected to carry on in 2022 with new vigor and enthusiasm. You could expect to witness the advent of CBDC or the Central Bank Digital Currency.
Institutional Investments Are Likely To Go Up In Crypto Markets
According to the latest crypto news, the cryptocurrency industry has attracted huge investments from reputed financial organizations and companies. As per reports, a whopping amount of $ 30 billion was put in by investors that included venture capital funds during 2021. Facebook and Microsoft have grand Metaverse plans. Moreover, top brands such as Adidas and Nike have entered the crypto space. This sterling news has made way for more investments in the upcoming year. There would be tremendous activity in DeFi space. Banks also have begun to acknowledge the power of cryptocurrency and are considering adding more support to the cryptocurrency market. Big banks such as, Goldman Sachs, have plans of rolling out newer loan products that are backed by cryptocurrencies.
Conclusion: Be Prepared for Government Backlash to Go On to the Next Year
The world is eager to embrace cryptocurrency, but governments are keen on cracking down on it. Banning crypto may not be possible, but governments are determined to make things difficult for people to trade. One could expect that in Europe and the United States, there will be increased scrutiny about cryptocurrency mining and its climate impact.