The cryptocurrency world took off recently as the total market capitalization of all cryptocurrencies now exceeds $0.9 trillion and it’s estimated that there are over 300 million crypto users worldwide.
What Are Cryptocurrencies?
A cryptocurrency is a digital asset that can circulate without the centralized authority of a bank or government. Cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
So, now let’s explore the biggest trends in the crypto space in 2022 and those that are likely to continue through the future.
TOP 10: Incorporation of non-fungible tokens (NFT)
Fungible tokens, such as Bitcoin do not represent any claim to an asset or physical things making them easily tradable. Whereas, NFTs represent claims to physical or virtual things. According to Martech 360, non-fungible tokens have a huge potential considering their usability for both physical and virtual property. Event organizers will soon mint NFT tickets onto a chosen blockchain and will sell them at a set price or auction them.
Big brands now looking for NFTs are the most significant developments in 2022. This in turn will provide companies the opportunity to explore the emerging NFT space.
TOP 9: Stablecoins And CBDCs Alter The Crypto Ecosystem
Although the most prominent stablecoin, Tether, is facing legal problems, the stablecoin concept is still rapidly gaining momentum. According to Exploding Topics, the total market value of stablecoins is estimated to be around $150 billion.
CBDCs are digital tokens issued by central banks essentially as the digital version of their fiat banknotes. Most central banks are considering CBDCs of at least one of two varieties: retail or wholesale. According to CSIS, about 50 central banks are researching or developing retail CBDCs, including 10 with pilot programs. Three retail CBDCs in the Bahamas, eastern Caribbean, and Nigeria have already launched.
TOP 8: Cross-blockchain bridges for trading cryptocurrencies
Cross-blockchain bridges help connect different blockchains, enabling users to transfer cryptocurrencies from one chain to another, as stated in Make Use Of. Cross-blockchain bridge protocols facilitate more peer-to-peer swaps.
According to Martech 360, there are about 20 popular cross-chain bridges. Overall, cross-blockchain bridge possibilities are expected to grow as they are connected to the Ethereum network due to Ethereum Virtual Machine (EVM) compatibility. This further boosts the process of making multi-blockchain projects and interoperability to be the main theme for cryptocurrency.
TOP 7: Rise of DeFi
DeFi provides financial services without centralized intermediaries. According to Martech 360, this is possible through automated/smart protocols on blockchains making the need for financial intermediaries almost unnecessary. DeFi has great potential and can be used to complement the current traditional finance system. Last year, the DeFi ecosystem grew very popular in the crypto community. The growth of decentralized finance is still at the beginning stage as currently, it has around 17% dominance in the crypto market.
According to Finance Monthly, DeFi is booming with the total value locked in the overall value of assets deposited in transactions having risen from $700 million in December 2019 to over $200 billion at the beginning of 2022, equivalent to Greece’s 2017 GDP.
TOP 6: FTT/FTX
FTX is one of the world’s largest cryptocurrency exchanges. It enables customers to trade digital currencies for other digital currencies or traditional money, and vice versa.
FTX and FTX crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTX’s native token, FTT, plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low as of Nov. 9. FTX’s unexpected collapse left the cryptocurrency market and its investors reeling, according to Nerd Wallet.
TOP 5: Collapsed the Luna Crypto Network
The Luna crypto network collapsed in what’s considered the largest crypto crash ever, with an estimated $60 billion wipeout, shaking the global digital currency market. According to Forbes, the Luna crypto crash was caused by its connection to TerraUSD (UST), the algorithmic stablecoin of the Terra network.
The Luna meltdown impacted the entire cryptocurrency market, which was already highly volatile and experiencing difficulty at the time. It’s estimated that the Luna crash ended up tanking the price of bitcoin and causing an estimated loss of $300 billion in value across the entire cryptocurrency space.
TOP 4: Ethereum Merge
The world’s second-largest cryptocurrency has undergone a significant transformation to a new system for processing transactions on Sept. 15, 2022. The network’s shift from proof-of-work (PoW) to proof-of-stake (PoS) has been years in the making, according to Euro News.
Ethereum transaction fees are not expected to change as a result of the Merge. According to Coin Desk, future network updates, like danksharding and proto-danksharding, may help to address Ethereum’s high network fees, but these updates are not expected until 2023 at the earliest.
TOP 3: The Market For DApps Expands
Decentralized Applications (DApps) are software applications that run on a distributed peer-to-peer network. The global DApps Market is forecasted to reach USD 368.25 Billion by 2027, according to Ein News. The DApps market is anticipated to expand significantly due to the growing rate of online gambling along with the need for peer-peer transactions to reduce the chances of online payment breakdowns.
The continual adoption of advanced technology and IT-based applications among users is augmenting the market growth. Moreover, DApps is an open-source application, which means to build this application, developers are not required to take permission from any authority. Besides, the cost-effective development charges to build a decentralized application are also stimulating overall market growth.
TOP 2: Bitcoin Going Down
The world’s largest cryptocurrency lost about 58% of its value in the second quarter of 2022. Around $1.2 trillion has been wiped off the entire cryptocurrency market, according to CNBC. Macroeconomic issues, such as rising interest rates and rampant inflation, led to a sell-off in stocks and filtered through to the cryptocurrency market.
TOP 1: Regulation Is Unavoidable
Cryptocurrency regulations have been and will become unavoidable. According to Martech 360, last year, the crypto world witnessed significant regulations being imposed on cryptocurrency trading. From China banning all crypto-related activities, to the U.S. authorities regulating some aspects of cryptocurrency. These significantly effective regulations were implemented to exercise authority to reduce the high volatility of the crypto market.
In the future, cryptocurrency regulations will become unavoidable as they help minimize the use of crypto for illegal businesses and simultaneously help in mitigating the damages associated with sell-offs. Regulators are now investigating the DeFi space as well making cryptocurrency regulations unavoidable and playing a significant role in the crypto market.
Why Should you be Aware Of Crypto Trends & News?
The cryptocurrency market has been almost completely unpredictable over the last few years. Not only due to innovations, but also due to general market volatility with mainstream coins along with many altcoins. However, one certain thing, is that innovation in this space will continue. So, you have to be updated daily with this field.
Here we conclude our list of the top 10 Best Cryptocurrency News & Trends in 2022 again:
- Regulation Is Unavoidable
- Bitcoin Going Down
- The Market For DApps Expands
- Ethereum Merge
- Collapsed the Luna Crypto Network
- Rise of DeFi
- Cross-blockchain bridges for trading cryptocurrencies
- Stablecoins And CBDCs Alter The Crypto Ecosystem
- Incorporation of non-fungible tokens (NFT)
These are innovative times for currencies and payments. So, we hope our list of the top 10 Best Cryptocurrency News & Trends in 2022 will help you to update with the latest trends and news. If you’re looking for articles in the Business – Crypto – Finance category, you may find them on our website, The Daily Top 10. The Daily Top 10 Team wishes you good luck in your future and we invite you to subscribe to our Newsletter and update daily with us, The World’s #1 Source Of Research-Based Content.