The previous year observed various ups and downs in the world of Bitcoin cryptocurrency. Despite all these changes and uncertainties, the market cap of crypto went up to $3 trillion and it is expected to increases manifolds by the end of year 2022.
Recent developments in the cryptocurrency including NFTs, metaverse, Ethereum, etc. have also made this currency a huge attraction for investors all over the globe. Bitcoin saw an overall 70% gain last year which shows how much potential cryptocurrency has.
All of these and many other trends are also happening in cryptocurrency this year as well and that is what this article is all about.
Here are some of the hottest cryptocurrency trends that you need to learn about in 2022
- Better Regulatory Landscape
This year various governments and international financial institutions are looking into the potential effects of cryptocurrency on the overall global economy. Various risks to financial stability are being considered by these bodies which can lead to a more crypto-friendly regulatory landscape than ever.
Though some countries like China and India banned the currency some others like El Salvador adopted a different approach where they even issued a legal tender for cryptocurrency regulations.
The creation of CBDCs i.e., a bank for digital currencies shows a greater interest of various nations in regulating cryptocurrency. Cryptocurrencies such as LPNT are worth looking at. You can do the LPNT login to learn more about this cryptocurrency.
- Web 3.0 Adoption
One of the biggest cryptocurrency trends of 2022 is the adoption and evolution of web 3.0. It is a more open, connected, and intelligent way to conduct your crypto business safely.
This offers a block-chained version of the internet and allows to remove site crashes resulting from a single failure point. Cryptocurrency linked with web 3.0 is the hottest cryptocurrency trend that is going to dominate 2022 and many more years to come.
- Bitcoin Resurgence
The January of this year saw a drop in the peak of bitcoin from 67000$ to $35000. This lasted for a short while and then the cryptocurrency bounced back stronger than ever.
A recent note to investors by FSInsight stated that Bitcoin is expected to hit a climb of 460% in the second half of 2022 which means it can reach a peak of about $200,000.
Many believe that cryptocurrency will most likely continue this upward trajectory where it will reach its previous high and then it will exceed its bare minimum of $100,000 without any trouble.
Some people are predicting its collapse but these people too are predicting that the maximum drop will be probably $100,000.
- Environmental Ramifications
Lately, most environmentally cautious individuals and organizations are turning against cryptocurrency for its increased carbon footprint.
Cryptocurrency is created or mined using very high-power computers that run continuously and consume and then emit harmful gases into the environment.
According to research conducted by the University of Cambridge, Bitcoin mining is consuming about 0.5% of the total electricity globally which is more than what a country like Sweden consumes in one year.
The environmental impact of crypto mining can lead to stronger opposition from the general public which can contribute to strict global restrictions on this industry. Along with Bitcoin, LPNT is also becoming quite popular. The LPNT coin login portal will help you learn all you need to know about this cryptocurrency.
- Bitcoin Exchange-Traded Funds or ETF’s
ETF was launched in the October of last year by ProShares. It is the first US-based ETF that offers capital appreciation through minimum exposure in terms of future Bitcoin contracts.
The Bitcoin ETF is going to get a lot more attention from crypto investors for being completely liquid, transparent, and risk-free. This is also expected to create a major spike in the retail investment front which is quite amazing.
- Institutional Investment in Cryptocurrency
This year many corporate organizations and giants in investment have shown a massive interest in the crypto industry. According to an estimate, venture capitalists have invested about $30 billion in the crypto sphere so far this year.
This trend will only grow since various tech and other companies like Microsoft, Meta, and Nike are transitioning to Metaverse and virtual products.
Decentralized Finance banks or DeFIs are also going to be a huge thing in the coming months. This year will also see the introduction of RBIS which is developed to drive more demand.
This will lead to interest-generating wallets, a crypto exchange app, and a launchpad that will fund the new and promising cryptocurrencies.
There is so much room for innovation and development in the cryptocurrency industry. And though so far, the market of cryptocurrency has been unpredictable and volatile for the past few years, it is still going to persist for a long time.
We really hope you have learned something of value by looking at these few cryptocurrency trends for the year 2022. We hope you find this information useful and we wish you the very best in learning and mastering every aspect of cryptocurrency that there is.