What areas of the cryptocurrency market will attract investors in 2022?
Сryptocurrency projects that already exist will be attractive to investors next year. According to Larry Chermak, vice president of research at The Block, crypto platform operators and data providers will also benefit.
“If you already have an established exchange or data exchange business and just need a little money to grow, they will never have a problem,” the analyst said.
Chermak believes that the focus in 2022 will also be on Layer 2 protocols, which can be used to conduct faster and cheaper transactions on top of blockchains. A prerequisite for this will be the launch of decentralized applications originally designed for L2 solutions.
The analyst believes that the decline in interest in NFT will not prevent the growth of this direction. The market for non-fungible tokens will be more sophisticated in the next phase.
“Probably, some specialized NFTs will not be in such demand next year. But some of the more creative and in-game assets … I think we’ll see something,” said Cermak.
In addition, the expert recalled that Tesla’s bitcoin investments in 2021 became a prerequisite for customer interest in cryptoassets. Some companies from traditional business sectors that have not previously invested in digital assets are interested in this topic.
“We need to know what bitcoin is. We need to learn more about how this ecosystem works, get to know DeFi and L2,” Chermak outlined their motives.
Meanwhile, the first cryptocurrency showed growth again according to Coinmarketcap data, breaking the $48,870 mark. At the same time, yesterday, December 20, the price of bitcoin fell below $46,000.
The price of BTC within 3–6 years is able to reach its maximum mark — this is about $0.5 million, says Mikhail Malyshev, head of the Teza Technologies hedge fund. Also, according to his forecast, bitcoin will gradually surrender its leading position in the crypto market in the coming years.
“The price of BTC should reach the upper level within 3–6 years. It is difficult to say what it will be, but the range of $150–500 thousand is quite probable,” said the head of the fund.
In what direction do you think the cryptocurrency industry will develop in 2022? And what do you think about the prospects for the main cryptocurrency in the coming years?
