It was the most crucial year in bitcoin history when it finally went public in 2021. It wasn’t only that some tokens soared, with Bitcoin rising 60%, Ethereum rising 400%, and Binance Coin rising 1,300%. The widespread adoption of cryptocurrencies by institutional investors, huge organizations, and even governments, such as El Salvador’s adoption of Bitcoin as legal tender, as well as the innovation and integration we saw in the DeFi, NFT, and Metaverse spheres, were the main drivers.
There are a bevy of reasons to believe that 2021 will go down in history as the most crucial year ever, including the fact that a number of well-known people, including Elon Musk and Eminem, have openly announced their support for crypto wallet app development. So, what happens in 2022?
One thing is certain: crypto has a lot to live up to, and while no one is predicting a repeat of 2018, the market may struggle to match last year’s stunning gains. However, there are still plenty of bright areas in the crypto sector to monitor as we enter the new year.
The development of DeFi yield farming also paves the path for more sophisticated and potentially profitable financial products. For example, Synthetix produces synthetic assets in the form of ERC-20 smart contracts that track and earn returns on crypto wallet app development assets without requiring the owner to hold the token. Users can build and trade Ethereum-based cross-chain and off-chain assets with SynFutures, a similar project.
DeFi schemes like these have the advantage of giving you access to assets that typical investors don’t have, and they can help you make a lot of money if you can foresee market shifts.
NFTs (nonfiction textbooks) continue to attract people’s curiosity.
Non-fungible token sales totaled more than $20 billion in 2021, putting them in the spotlight. Hundreds of multi-million dollar purchases of Bored Ape Yacht Club and CryptoPunks NFTs led the way, with a single JPG by artist Beeple selling for a record $69 million.
Despite their excitement and exorbitant price tags, NFTs are undoubtedly here to stay. They have far too many uses, ranging from gaming to the arts, real estate, and asset tokenization, to name a few. The benefits of employing NFTs are also clear, with artists and musicians being able to include automated royalties in the resale of their works, for example. Meanwhile, real estate sellers can reach millions of potential buyers by using NFTs to fractionalize property ownership.
It suggests that NFTs, as well as the markets that sell them, have a promising future. OpenSea is the clear market leader right now, accounting for more over 60% of all 2021 sales. Decentralized platforms like Infinity, on the other hand, are predicted to gain in popularity. Infinity is a decentralized NFT marketplace that aims to exceed OpenSea by better representing and absorbing the needs of the community. By charging a 1.5 percent transaction fee that goes to the community-controlled treasury, Infinity is working with Common Protocol to migrate to a direct governance model, as well as making it faster and cheaper to list NFTs.
The most influential year in the metaverse
The Metaverse’s dynamic nature as a facilitator of social contact, recreation, trading, business, gaming, and education, to name a few applications, will ensure that by 2022, it has grown to become a far greater part of our culture and economy.
The Metaverse, a digital realm that combines virtual reality, augmented reality, and video to allow users to interact with digital avatars, has a lot of promise. It will usher in a new era in which our digital and physical lives become increasingly intertwined, simplifying connectivity and enhancing the lifelikeness of each of our online interactions.
Despite Mark Zuckerberg’s enthusiastic support for the Metaverse, it will not be dominated by Facebook. Fully decentralized metaverses, on the other hand, will pique people’s curiosity. We’re talking about virtual worlds like The Sandbox and Decentraland, where people may use NFTs to purchase digital land. Play-to-earn gaming is another hot Metaverse prospect, with DEA creating a complete virtual civilization around its Play Mining platform, which allows users to explore new worlds, fight and perform jobs, gain in-game goods, and then trade them with other players.
The Metaverse may still be in its early stages, and no one knows how much it will shape how humans interact with technology. In any case, 2022 will be the year that the Metaverse and its progress over the next decade are laid out, affecting how people work, relax, play, and socialize in the virtual world.
On Web3, increase the number of legs.
The coming together of DeFi, NFTs, and the Metaverse is resulting in the creation of a Web3 environment, and all signs point to 2022 as the year.
Web3 is the next step in the internet’s growth, which began with Netscape and AOL’s static Web1. Then there was Web2, which was a lot more intriguing but was still dominated by big companies like Google and Facebook. With Web3, people reclaim control of their data and the internet becomes completely decentralized and permissionless.
DAOs should work together for the good of their communities.
In 2021, DAOs (decentralized autonomous organizations) had a great year, fast establishing themselves as community-led organizations structures for a number of purposes, including investing, fundraising, tokenized asset management, and transparent governance.
The December release of GoodDollarV2 has set a new standard for UBI distribution. It works by using yield farming and liquidity mining rewards to ensure a consistent flow of funds into the protocol, resulting in a crypto-based UBI for the entire community. As we get closer to 2022, we might see more DAOs working together for the betterment of their communities.