BFC Bulletins Monthly News Digest
2021 was a seminal year for crypto, and 2022 is poised to follow up with yet another big year. Here are 10 predictions for crypto in 2022, divided into 5 major themes:
- Theme 1 – stablecoins will lead crypto growth.
- Stablecoin supply will reach USD 500 billion. With the stablecoin supply at USD 140 billion and showing no signs of slowing, USD 500 billion seems easily achievable this year as the stablecoin market continues its march toward USD trillions.
- USDC and UST will take the market share from Tether. USDC and UST are quickly establishing themselves as the dominant centralized and decentralized stablecoins. Their growth will likely see the market share of Tether fall significantly.
- Theme 2 – decentralized autonomous organizations (DAOs) will continue to evolve.
- DAOs will grow exponentially as coordination vehicles. DAOs can serve many purposes, including managing blockchain operations and coordinating the purchase of digital assets (among many others). As DAO popularity grows, much of this will be in its ability as a coordinating vehicle.
- DAO governance designs and infrastructure will mature. DAOs are still at a nascent stage of development. As DAOs grow, so too will the governance models and infrastructure that surrounds them.
- Theme 3 – fast chains, layer 2s (L2s) and cross-chain apps will enable widespread adoption.
- Fast chains continue to grow as L2s take off. 2021 saw the rise of fast, low-cost blockchains such as Avalanche, Ethereum, Solana and Terra. This will continue in 2022. Moreover, many transactions will also start to migrate off L1 solutions and to L2 solutions, which will enable them going more mainstream.
- Cross-chain usage will become seamless. In 2022, solutions such as Wormhole will make huge strides in enabling assets and information to be seamlessly exchanged across various blockchains and apps.
- Theme 4 – every (innovative) company will work with crypto.
- Financial institutions, advisors and fintechs will increase their crypto offerings. Crypto has become too big for financial institutions, advisors and fintechs to ignore. 2022 will be the year that crypto products are rolled out to consumers on a wide scale.
- Gaming studios will go all-in on crypto. The success of Axie Infinity has led to a flood of other crypto games, most of which are not very good and lack staying power. However, the concept of games that enable true ownership will become foundational to the future of gaming. In 2022, traditional game studios will begin the move to crypto gaming.
- Crypto will start to eat the world. As crypto adoption continues to invade an increasing number of companies and aspects of our lives, it will become the new norm and the ‘crypto’ distinction will begin to slowly die away.
- Theme 5 – all venture capital will be crypto venture capital.
- A record amount of venture capital funds will be deployed into crypto. In this first 9 months of 2021, USD 15 billion was invested into crypto startups, a near 5-time year-on-year increase. 2022 is likely to see an even larger increase in the amount of venture capital pumped into crypto investments.
2021 was a seminal year for crypto, and 2022 is poised to follow up with yet another big year. Here are 10 predictions for crypto in 2022, divided into 5 major themes:
- Theme 1 – stablecoins will lead crypto growth.
- Stablecoin supply will reach USD 500 billion.
- USDC and UST will take the market share from Tether.
- Theme 2 – decentralized autonomous organizations (DAOs) will continue to evolve.
- DAOs will grow exponentially as coordination vehicles.
- DAO governance designs and infrastructure will mature.
- Theme 3 – fast chains, layer 2s (L2s) and cross-chain apps will enable widespread adoption.
- Fast chains continue to grow as L2s take off and help make them more mainstream.
- Cross-chain usage will become seamless as information becomes easily exchanged across various blockchains and apps.
- Theme 4 – every (innovative) company will work with crypto.
- Financial institutions, advisors and fintechs will increase their crypto offerings, taking crypto to a new scale.
- Traditional gaming studios will go all-in on crypto and move to crypto gaming.
- Crypto will start to eat the world and become the new norm.
- Theme 5 – all venture capital will be crypto venture capital.
- A record amount of venture capital funds will be deployed into crypto.
To read more in depth on these predictions, visit here.
