Cryptocurrencies had a watershed year in 2021. Despite many hurdles during the year, such as Covid-19, inflation, lawsuits, and restrictions, the crypto town remained unaffected. Furthermore, while being in their early stages of DeFi development, various sectors like DeFi, Gaming, NFTs, and Metaverse continued to thrive due to these challenges.
Now is the time to shift gears to the next level of renovations since we only have a few weeks till the start of 2022. While NFTs were one of the most critical hot developments in 2021, they are currently on the verge of a tremendous expansion in 2022. Bitcoin and Ethereum, on the other side, have experienced a fantastic breakthrough in terms of organizational acceptance, and 2022 is going to be massive. Web 3.0, the rise of stable coins, and data-driven protocols appear to be gaining traction.
1. NFTs and related platforms to move ahead at a Rapid Pace:
Non-fungible Tokens have given rise to an entirely new crypto economy. Initially seen as a transitory fad, NFT marketplaces like Opensea and Mintable, game platforms such as Axie Infinity, and artworks such as CryptoPunks grew in popularity. These platforms now have a devoted following of content creators, traders, and service providers.
According to a recent analysis by Messari, total secondary sales in multiple areas such as gaming, PFPs (profile pictures), sports, and collectibles totaled over $15 billion. Ethereum takes the lead as interoperability reaches its pinnacle.
2. Mining of Liquid Assets:
Liquidity Mining is a term used to explain the process of extracting liquid assets Liquid mining, also known as harvesting agriculture, was the fastest-growing epidemic. This incentive encourages cryptocurrency investors to create a decentralized network for their coins.
Regrettably, this offers the requisite liquidity, and, as a result, the protocol is mistakenly launched. Liquid mining is a DeFi trend that will never die.
A sophisticated financial protocol is a modern example of liquidity mining. This is a DeFi application that allows users with an Ethereum wallet to withdraw assets or supply liquidity in one of the liquidity pools.
Users are rewarded according to the Compound’s main concepts. Liquidity mining has been an unstoppable DeFi trend since Compound introduced COMP’s governance token last year. According to the new protocol, anyone who buys or rents COMP tokens will be rewarded.
Farmers’ automated production, such as grain harvesting, will be more automated this year due to the creation of a better DeFi platform.
3. Ethereum to lead from the front:
In every discussion around DeFi wallet development trends in 2022, Ethereum is an important pointer. In 2021, Ethereum was the best support for DeFi, and it is projected to continue on this road. DeFi’s goal is to build everyone’s loyalty by simply rotating charges ranging from $5 to over $30.
To enable the movement of information between different blockchain networks and encourage user interoperability, cross-chain technology has come up as the most recent manifestations of the 2021 DeFi trend.
Matic, An Indian blockchain scalability platform known as “Ethereum’s Internet Blockchain,” is a critical endeavor to spread the DeFi sector’s load across numerous blockchains.
This is an excellent example of cross-chain technology and a solution to some of Ethereum’s existing issues, such as excessive transaction counts, poor user experience, and exorbitant costs.
Tokens of Governance Will Become More Important You may have observed that all of these rapidly expanding DeFi platforms has its token.
4. Governance Tokens at disposal:
These tokens are not the same as traditional cryptocurrencies. The goal of these tokens is to offer token holders voting power over the DeFi system.
A DeFi project like Compound, for example, enables users to use native tokens for various farm or rent income protocols. On the other hand, the Compound has its token (COMP). This token also controls the Compound DeFi protocol’s development.
Token holders vote for the project, and the token’s value rises as the DeFi protocol obtains more users or raises TVL. Governance tokens were quite popular in 2021 if the price is any indication. On TV’s three major DeFi platforms, the prices of governance tokens have climbed dramatically since early 2021.
Since the beginning of the year, the largest MakerDAO has grown its tokens (MKR) nearly five times. Since January 1st, COMP has climbed 1.5 times.
Since early 2021, the value of Governance Tokens (AAVE) has doubled on Aave, the third-largest DeFi lending platform.
The Gaming Industry’s Monetization:
Globally, more than 2 billion individuals play games, spending over the US $ 159 billion each year. The blockchain gaming sector will experience significant growth in DeFi as more individuals spend their time on entertainment.
The blockchain game is built around the idea of a player executing a specified activity to mine a token. If your industry is monetized, the DeFi protocol will be required to enable game portability.
BitSport, a cryptocurrency game platform, introduced crypto owners to sponsor game tournaments last year. This year, such tournaments and other gaming platforms are projected to grow again, making them one of the most promising DeFi ideas in 2021.
DeFi generates new and appealing trends for merchants by monetizing the game business.
5. Stablecoins to dominate DeFi Solutions:
Another field where DeFi is gaining traction is the stablecoin industry. Over the last year, stablecoin has grown by $ 20 billion, while stablecoin offerings have risen to over $ 26 billion. TetherUSDT is the most prominent participant, accounting for over 79 percent of the market.
The US dollar dominates the stablecoin market, with CircleUSDC being one of the most visible figures. Fat stablecoin is expected to lose market share as the industry matures and deploys government stimulus measures. This will further attract more.
And last but not Least…
6. Advent of 5G will Boost DeFi:
Traditional finance is about to be fundamentally transformed by DeFi. Traders can lend, borrow, and earn higher-class incentives than typical financial institutions can provide. To ensure high-speed connectivity, Defi will switch to 5G, eliminating the requirement for servers to be located near bitcoin exchanges.
The year 2022 will be a watershed moment in terms of technological advancements. The ecosystems of NFTs, ETFs, DeFi, and Stablecoins are on the hunt for the next step. In general, the crypto realm is expected to break into the mainstream in the coming year. Moreover, many people are also investing their money in the DeFi development process. As we move closer to the new year, cryptoverse is witnessing some groundbreaking innovations with each passing day, and the year 2022 looks promising. Crypto domain experts can help innovators and entrepreneurs to enter this new realm of cryptoverse with new vigor in 2022. Contact Antier Solutions now and ask the experts how to make a mark in the crypto-verse.