Market Watch

5 Trends In The Crypto Market That Cannot Be Ignored

The cryptocurrency market is a roller coaster, but now it is back in the green zone: global capitalization has reached $2.12 trillion and continues to grow slowly but surely.

This is what determines the fact that in 2022 the industry will receive increased attention from states and investors. We have collected other trends that will be of interest to users.

  • DeFi is getting stronger

The fact that DeFi is the most promising cryptocurrency industry today is evidenced by the number of funds blocked in projects – according to DeFi Pulse, as of September 3, this figure reached $89.5 billion. Just compare: a year ago this figure didn’t reach even $6.3 billion.

Interest in DeFi is growing both among institutional investors and among large players creating new infrastructure for the crypto sphere. For example, Goldman Sachs intends to create a DeFi fund that will invest in blockchain and DeFi-related tech companies.

In addition to internal software, the giants are investing in the creation of e-wallet app development. A variety of solutions are being developed by Samsung, Twitter, and other well-known brands.

  • IDO replaces ICO and IEO

In the field of cryptocurrencies, IDO – a new way of attracting funding is gaining momentum. The initial DEX offering is a token launch model in which fundraising takes place through smart contracts. The tokens issued by the projects are already backed by investor liquidity pools on DEX.

IDOs have many advantages over regular ICOs and IEOs: they include an independent decision to conduct an IDO, immediate liquidity of tokens, instant trading, and lower transaction costs.

  • NFT is at the forefront again

The NFT industry experienced two popularity booms in a year. In August, trading volume on OpenSea exceeded $1.3 billion, although now the figure rolled back again.

This is still an experimental area, but big players are entering the NFT space. For example, the Alibaba Group has launched a market for copyright trading based on this tech. Moreover, it is expected that ТАЕ will bring serious profits to the GameFi projects.

  • Crypto cards battle for customers

At the end of 2021, the main payment systems will fight for crypto users’ favor.

Mastercard is now supporting some coins on its network. The company’s team says that cryptocurrency is an increasingly important part of the payments world, so they will allow merchants to accept digital assets as well.

At the same time, Visa is working on a project for a universal payment channel that connects blockchain networks with various crypto assets, stablecoins, and digital currencies of the central bank.

PayPal opened access to cryptocurrencies to US customers as well. They can buy, hold and sell digital money directly through the service. At the same time, the company announced the ability to pay with cryptocurrency at retail outlets.

  • Institutions are in the game

World institutions are interested in cryptocurrency just like ordinary crypto enthusiasts. For example, State Street Bank intends to offer cryptocurrency services to wealthy clients of its funds, and BNY Mellon has joined an alliance of six banks that are planning to launch Pure Digital – a digital asset trading platform.

At the same time, large companies are looking for cryptocurrency specialists. For example, Walmart is looking for a Head of cryptocurrency products. Lloyds Banking Group, one of the oldest UK banks, is also hiring a senior manager for digital currencies and innovation.

Cryptocurrencies and blockchain have become part of our day-to-day life and, we hope, the future. The trends mentioned in this article only confirm that. Let’s see how they show themselves in 2022.