Because the yr is about to finish, a lot of corporations working within the crypto area have shared with Cryptonews.com their predictions for 2022.
That will help you perceive what a few of the main gamers within the area see for the subsequent yr, we determined to try what subjects are trending amongst those that dare to invest concerning the future.
1. Ethereum’s place to be solidified
“We consider that after Ethereum transitions to [Proof-of-Stake – PoS], the drop in transaction charge on [Layer 1] will solidify Ethereum’s place because the go-to place for utilizing DeFi functions,” Yenwen Feng, co-founder of the decentralized derivatives buying and selling platform Perpetual Protocol, stated.
Layer 1 refers back to the Ethereum community itself, whereas Layer 2 refers to any chain constructed on high of the bottom chain, sometimes to make transactions sooner and cheaper.
Additionally of the opinion that Ethereum’s place as a base layer will likely be solidified is Will Harborne, CEO & co-founder of decentralized finance (DeFi) platform DeversiFi, who stated that 2022 would be the yr wherein Layer 2 chains constructed on Ethereum will attain “important mass adoption” – and that they are going to surpass the bottom layer by way of each complete worth locked (TVL) and quantity.
2. Continued development for play-to-earn video games
A development that has already taken off this yr, and that a number of corporations count on will proceed to develop subsequent yr as effectively, is the increase of crypto-based play-to-earn video games. Generally known as GameFi, it is a sector of the crypto area that blends DeFi with gaming and the metaverse – all sizzling areas over the previous yr.
“Play2Earn or GameFi is the place I see essentially the most development potential as a result of it’s the simplest way for over 1 million individuals to hitch the ecosystem inside 1 to 2 years,” stated Jori Armbruster, CEO of the social lending platform EthicHub. “The complete gaming trade will pivot to be constructed on high of public blockchains, bringing thousands and thousands of customers to those networks.”
Equally, George Harrap, co-founder of the Solana (SOL)-based DeFi protocol Step Finance, can be optimistic concerning the crypto gaming sector, however stated these is not going to depend on Ethereum’s Layer 1, however somewhat varied second-layer options and different blockchains like Solana.
“For instance, Axie Infinity [AXS] needed to construct their whole new chain on [the Ethereum sidechain] Ronin as a result of Ethereum was gradual and costly. You possibly can’t construct a gaming platform on Ethereum L1’s,” Harrap stated.
3. Ethereum will face competitors
Though some are optimistic about Ethereum’s place subsequent yr, others say they consider Ethereum will face rising competitors from each Layer 1 blockchains and Layer 2 options, specifically on the subject of crypto gaming.
“Ethereum isn’t going to get solved subsequent yr, not even shut, so there may be simply going to be a proliferation of extra Layer 2’s and Layer 1s,” stated Step Finance’s George Harrap, earlier than delivering a last punch to Ethereum followers, saying “you’re not going to see gaming stuff on there.”
4. Regulatory readability and convergence of crypto and TradFi
A number of of the businesses that shared their predictions for 2022 with Cryptonews.com additionally stated they consider 2022 will likely be a yr the place laws turn out to be clearer around the globe. Based on some, this might blur the strains between crypto and conventional finance (TradFi) additional.
“2022 will definitely see better clarification on nationwide regulatory frameworks, for higher or for worse,” stated Johannes Schweifer, CEO of blockchain infrastructure supplier CoreLedger. He added that crypto “can’t be ignored any longer,” and that international locations will likely be pressured to “both help, or suppress, the expertise.”
In the meantime, based on Sidney Powell, co-founder of institutional capital market Maple Finance, a development of DeFi companies which can be compliant with laws may even result in “a giant increase of institutional credit score flows into the digital economic system.”
“[…] the strengths of DeFi and TradFi will converge,” and institutional sentiment will flip in favor of crypto, Powell argued.