2021 proved to be a great year for international cryptocurrency marketing as well as the blockchain ecosystem says Brian Colombana. The capitalization smashed all other records that came close to $3 trillion, and there was a dramatic price increase. That aside, El Salvador was the first country to say yes to Bitcoin as a legal tender.
Are you wondering what can you expect for the year 2022? In this article, we will talk about the cryptocurrency predictions by Brian Colombana.
1) Bitcoin stays the king
Even though the dominance of Bitcoin went down by 20% in 2021 and the investors started to check out other options such as Polkadot, Solana, and Ethereum, Bitcoin to date is the “heavy” asset. The Bitcoin dominance gets calculated as the ratio of the market capitalization and the overall crypto market cap. Even Altcoin prominence went up to 30% to 60% between the years January 2011 and January 2022.
In the long-run, holding in Bitcoin went up by 16% above 2021. Simultaneously, the short-run holding supply went down by about 32%. The outcome is what is known as “Sovereign Supply,” which went up to a maximum of 13 M BTC. And it is this macro consolidation that had raised the optimism in Bitcon.
2) The cross-blockchain bridges
It connects various blockchains and enables the users to send the cryptocurrencies from a single chain to the other. Till date, there are 20 popular bridges. Also, the cross-blockchain link protocols like Rune will always enable increased peer-to-peer swaps. And as of now, the majority of bridges get connected to the Ethereum network because of the Ethereum Virtual Machine compatibility, such as the Binance Smart Chain Bridge, Tezos Wrap Protocol Bridge, Avalanche Bridge, and Solana’s Wormhole Bridge. In totality, the possibilities for the cross-blockchain is anticipat to play an effective role says Brian Colombana. The multi-blockchain projects and the interoperability will also become the essential elements of the DeFi industry.
3) The liquidity and DeFi
The objective of DeFi is to offer financial services without any centralized intermediaries via the automated protocols on the blockchains. It is center around two crucial elements: protocols for lending, trading, and investing and stablecoins. It has ample potential and can get use to complement conventional finance. Also, in 2021, the DeFiecosystem increased sevenfold on an annual basis, with a market dominance of close to 17%. Also, the number of users resorting to dApps increased by 592%. The Inflation Adjusted Total Value Locked of DeFi is close to $150 billion.
According to Brian Colombana, as the market for cryptocurrency increases more that might avert the institutional investors, it has started to identify this asset class as a legal investment scope, even though the full-fledged regulation is still there. One can say that the bank-like regulatory set-up for the stablecoin issuers might get propose in the year 2022.
Hence in totality, we can anticipate there will be a wider adoption of the blockchain technologies. There will be a scope for tracking, digitizing, and monitoring several procedures, including medical data usage, attributes, identities, authenticating suppliers, and money transfer. Hence, the scopes are endless using this technology.