Published 2 weeks ago • 5 minute read

Cryptocurrency Trends Wealth Managers Should Keep An Eye On In 2022

The last years have been exciting for the worldwide cryptocurrency market and the blockchain system. Digital currencies are one of the most widespread subjects worldwide and growing in popularity daily. The crypto sector is evolving in countless new directions, and investors cannot stop wondering what trends will be most prominent in 2022. 

Those interested in cryptocurrency trading know that a lot is going on in the industry these days. In 2022, a couple of different trends have emerged and will most likely be sticking out. Using cryptocurrencies has become legal in most countries, and the number of companies accepting digital currencies as payment methods has increased. The last year has been described as a brilliant time for crypto investment due to institutional and retail investors. Virtual currencies, understood only by a small group of specialists until a couple of years ago, have become a household name. Experts predict that the global crypto investments will triple by 2030. 

If you’re a wealth manager, here are the trends you should watch in the following months.  

Ethereum remains one of the strongest players in the crypto sector

Investment specialists think this is the ideal moment to trade crypto because it’s the most affordable investment time. Using a crypto exchange platform where you can track and analyze coin’s performances such as Binance, helps traders make well-informed and strategic decisions. If you’re planning to invest in digital currencies now, you should know that Bitcoin isn’t the only crypto on the market. There are thousands of virtual currencies, and one of the most popular is Ethereum. Crypto investors think you cannot go wrong because it dominates the cryptocurrency market, and Ethereum prices will grow. Ethereum is one of the well known virtual currencies to invest in at the moment. It was the first to introduce smart contracts and encourage developers to create mobile and desktop apps (dApps) using blockchain technology. One of the reasons Ethereum remains one of the most popular cryptocurrencies is its loyal community and team. 

Crypto regulations

In 2021 there were several developments in crypto regulations, with the US authorities partly regulating the market and several regulators scrutinising the DeFi space. Crypto experts predict that market regulation will play an important role in the industry’s evolution. Regulators try to lower the market’s volatility and exercise more authority in the sector. If they succeed in their efforts, they can mitigate some of the negative effects associated with a massive sell-off. Regulations also have the purpose of reducing the use of digital currencies for illegal purposes. 

Regulatory announcements impact the price of cryptocurrencies in the volatile market, and no one can predict if they will go north or south. As an investor, it’s crucial to remember that volatility is temporary because the markets need time to adjust to any change. Regulation is good for the cryptocurrency market because it gives people more confidence to invest. 

The market is steadily shifting towards DeFi

Few people are aware of the existence of DeFi as it’s still in a nascent phase, so if you’re new to the cryptocurrency market, you might not have heard about it. At the moment, DeFi deals with issues like credit scoring, scalability, and financial privacy, but as more fintech companies search for ways to enter the market and develop improved blockchain solutions, we expect these problems to get solutions. Financial specialists are confident that the future of the system with DeFi can trigger mass adoption of the technology by Fintech businesses, government, and banks. 

The demand for DeFi tokens and related projects will grow in 2022 and beyond, so you should keep this trend in mind if you plan to invest in the sector in the following months.    

The rise of Web 3.0 can mean the death of Internet giants

Blockchain technology is more popular than ever, and it’ll most likely trigger growth in some unique areas of the internet. Entrepreneurs and tech moguls are constantly searching for ways to invest in cryptocurrency and blockchain, and Web 3.0 provides them with the necessary tools to do it. Specialists predict that it can become something more extraordinary than the IT industry has ever expected to witness. Web 3.0 is described as a new Internet breed that aims to become a decentralised variant of the virtual world. It promotes transparency and provides users with unlimited access to content, resources, and agreements. Web 3.0 tokens are decentralised projects that rely on smart contracts to facilitate online transactions. It translates into people owning virtual content and a direct threat to the existence of Internet giants like YouTube and Instagram. 

Institutional adoption of Bitcoin and Ethereum

The Global Crypto Adoption Index revealed an 880% 12-month increase in cryptocurrency adoption globally as people are looking for ways to prevent currency debasement. The currencies with an aggressive virtual currency adoption are also more likely to experience currency debasement. For example, when Michael Saylor, a well-known corporate backer, announced that his company purchased 21 454 BTC, making a total of 114 042, which is worth over $5.6 billion, it drew the attention of several other entrepreneurs and companies who followed his example and embarked in a journey to purchase Bitcoin. 

Reports reveal that asset managers, banks, and fintechs also make an effort to facilitate blockchain investment, trading, and payment to investors. A long list of companies now accepts virtual currency payments. To name a few, Shopify, PayPal, Amazon, Starbucks, Microsoft, Coca-Cola, Visa, and MassMutual. Brands in all sectors are looking for ways to engage with blockchain technology and cryptocurrencies, and the next natural step would be for them to accept payments in virtual currencies and even shift some of their cash reserves to popular cryptocurrencies like Ethereum and Bitcoin. 

Financial experts expect Bitcoin to challenge the world’s largest quoted stocks like Microsoft, Google, and Apple. At the moment, Bitcoin ranks seventh according to market cap, and its supporters believe that it can surpass gold at some point. Ethereum also has risen in popularity over the last years and has become the world’s second-largest digital currency. 

Above are only some crypto trends that’ll impact the market in the following months. Keep in mind that the industry is unpredictable and ever changing. 

 

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