Crypto investors would agree that the last year was nothing short of a roller-coaster ride. Almost every cryptocurrency witnessed record highs and delivered extraordinary results. However, in the month of May, close to 50 per cent of the market value was lost in a matter of seven days. To make matters worse, China imposed restrictions on crypto and imposed a ban on all transactions.
Other notable crypto events in 2021 included El Salvador’s adoption of bitcoin as legal tender, the explosion of meme tokens, and the sale of an NFT for a whopping $69 million. All in all, 2021 was a banner year for digital assets, and the new year brings with itself new milestones for cryptocurrencies.
Let’s look at five cryptocurrency price predictions for 2022 that determine when the crypto market will go up.
The Way Ahead For Cryptocurrencies
# 1 Ether Will Better Bitcoin Yet Again
In 2021, Ether broke out of its reputation of being the second fiddle and outperformed Bitcoin by a significant margin, gaining 418 per cent as opposed to 66 per cent for Bitcoin. This is the widest seen performance gap since 2015, the year Ethereum was launched. This milestone event certainly influenced the cryptocurrency price predictions for the coming year.
Experts have similar cryptocurrency price predictions for 2022 as well. This is because of several reasons, including the surge in NFT sale volumes. Most of these tokens continue to operate on the Ethereum blockchain. The major updates from the London hard fork and the Berlin update have also helped enhance the network’s ability to process transactions.
# 2 Meme Witness Obscurity in Cryptocurrency Price Predictions for 2022
2021 was the year of meme coins. Dogecoin counterfeit Shiba Inu, for instance, grew by 44,540,000 per cent in the last year. Squid, a cryptocurrency named after the famous Netflix series “Squid Game,” rose more than 75,000 per cent in less than a week before disappearing soon after. This is why we cannot recap the crypto trends of 2021 without mentioning meme coins.
However, there will be no mention of these coins in the cryptocurrency price predictions for 2022.
# 3 We will See New Regulations
New regulations are required to make it much easier for new investors to approach cryptocurrency – and if experts are to be believed, we can expect to see these regulations in 2022. Financial regulators are expected to issue a set of new enforcements and guidelines that would help drive cryptocurrency into the mainstream.
While security regulations regarding cryptocurrency continue to raise questions, these regulations might bring some clarity in the space.
Stablecoins, which are built on numerous DeFi applications and have their values pegged to an outside asset like gold, could be one component of regulation here. Regulators may decide what a stablecoin issuer must do in order to call itself one. This is one of the most revolutionary steps influencing the cryptocurrency price predictions for 2022, as these regulations can be of great significance when the crypto market goes up or down.
# 4 The Year of Female Crypto Investors
While looking at cryptocurrency price predictions for 2022, you must also know that this is going to be the year of women crypto investors. The profile of the mainstream cryptocurrency investor is going to change in 2022. As of now, a typical crypto investor is a 38-year-old man, annually earning close to USD 111,000. But, this is going to witness a change this year.
As more and more people grow ‘crypto-curious’, women are also showing interest in buying and owning digital assets. Now, if these interested individuals actually go ahead and take action, the demographics of the digital asset industry can change drastically. This would lead to a broadening of the investor base and a push for cryptocurrency into the mainstream. This interest might lead to action when the crypto market goes up.
# 5 More Major Retailers will Accept Cryptocurrency When the Crypto Market Goes Up
Last year many companies started accepting crypto as a form of payment to join the ever-growing list of crypto-friendly businesses. At the same time, retail giants like Amazon and Walmart are bringing crypto and blockchain experts on board to put together a digital currency strategy. This could be because of the positive cryptocurrency price predictions.
Now, as and when the crypto market goes up, and more and more people become interested in cryptocurrency price predictions, 2022 might be the year when paying with digital assets becomes a reality. This could partly be because Gen Z is living a digital-first life and may own crypto they’d like to spend.
# 6 More Nations Will Adopt Bitcoin When the Crypto Market Goes Up
Many global financial giants say that more nations will adopt bitcoin in 2022 thanks to the bullish cryptocurrency price predictions. Since they may bypass the prejudices of traditional banks and other financial services providers, cryptocurrencies could help boost financial inclusion for individuals and enterprises in developing nations.
This will be an enormous move in order to ensure stability as and when the crypto market goes up.
# 7 Is DeFi Influencing Cryptocurrency Price Predictions?
Bitcoin’s market segment has declined as the crypto sector has matured, with new digital currencies such as Ethereum now playing a suggestively larger role. Experts believe that this trend will continue throughout the next year, as investors look for tiny pockets of cryptocurrency in the hopes of making large gains. This is one of the most significant factors influencing cryptocurrency price predictions for the year.
# 8 Diverse Uses of Digital Assets
Consumers are generally aware that cryptocurrency exists, but they are unaware of its practical applications. For many, it’s regarded as a novelty, an investing instrument for institutional or retail investors, or something that caters primarily to the hippest members of Generation Z. Expect this to change in 2022 as the markets show bullish cryptocurrency price predictions.
With optimistic cryptocurrency price predictions and a diversifying investor base, 2022 is undoubtedly going to be an exciting year for crypto stockholders. From more innovative entries to newer technologies waiting to take the crypto world by storm, this year has a lot in store for investors. What’s there to see is how the market responds to these changes and opens new avenues for crypto-owners.
Read More: Cryptocurrency Predictions 2022: Your Guide To Understanding The Crypto Market