The lending and borrowing platform Crypto.com released a document outlining its 2022 predictions for the sector. According to the report, 2022 could be the year when nation states realize that the crypto industry is here to stay, leading to a friendlier stance of countries around the world towards the industry.
1. One billion cryptocurrency users by 2022
The first prediction made by Crypto.com analysts is that 2022 will be the year when the global number of cryptocurrency users reaches 1 billion for the first time.
As of November 30 this year, the number of crypto users globally stood at 292 million, the report said, while adding that the top three countries in terms of number of users are India with 100 million, the states United with 27 million and Russia with 17 million.
“Nations can no longer afford to ignore growing public interest in cryptocurrencies,” which will force them to adopt a more supportive attitude, the report predicts.
He adds that developed nations will likely develop clearer regulations over the course of the year, and that some high-inflation countries may follow El Salvador’s lead and “adopt cryptocurrencies as legal tender.”
2. Cryptocurrencies will become “a staple” of investment portfolios.
Second, Crypto.com predicts that crypto will become “a staple of TradFi investment portfolios [finance traditionnelle]“through crypto exposure tailored to the traditional financial market.
“Cryptocurrencies are set to become an essential part of the alternative asset class for investment portfolios. The first ETFs [fonds négociés en bourse] cryptos launched this year have seen demand exceed capacity, suggesting that other instruments in the traditional finance space will soon follow,” the report states.
He also notes that large companies in the world of traditional finance, in particular Morgan Stanley, Citi, Goldman Sachs and JP Morganare looking to partner with crypto exchanges, and more companies are expected to follow in 2022.
3. Play-to-earn, a catalyst for cryptocurrency adoption
Crypto-based play-to-earn games, sometimes referred to as GameFi, have seen exponential growth in 2021, and will become “one of the main vehicles for mass conversion to the crypto space,” the report predicts.
Traditional game studios will be in a race to introduce play-to-earn features into their games, further accelerating the boom in this area in 2022, according to Crypto.com.
4. Multi-channel becomes the norm
The researchers said that the development of a multi-chain environment already seen this year with many decentralized finance (DeFi) protocols, will continue.
“Cross-chain DeFi protocols will become the norm, paving the way for a future that replaces the siled chains of the past,” the report predicts, adding that interoperability and gateways between blockchains are becoming – and will continue to become – “more transparent.”
5. DAOs will change the way we work
Finally, Crypto.com predicts that Decentralized Autonomous Organizations, or DAOs, will change the way we do business in the new year.
“In the era of Web 3.0, we will see the influence and reach of [DAO] expand significantly beyond the crypto space, and become a widely accepted governance mechanism,” the report notes.
The researchers added that they anticipate more countries will develop legal frameworks for DAOs, and eventually recognize them “as legal entities”, opening up the possibility of using DAO structures in place of traditional businesses.
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