Proponents of the cryptocurrency market have long been waiting to see the day that cryptocurrencies become the main form of currency in use worldwide.
While 2022 may seem like it’s a long way off, it’s not that far away when you consider just how much the crypto world has grown over the past decade.
By 2022, there’s every chance that blockchain and other crypto-related technology will be more pervasive than ever before, and software developers will be creating new and innovative ways to incorporate these technologies into everyday life to streamline processes and boost overall efficiency.
In this article, we’ll take a look at some of the top trends to look out for in 2022 when it comes to cryptocurrency.
Here we go!
1) Security Tokens
Until now, only accredited investors have been able to invest in cryptocurrency. Security tokens work like shares of stock and can be bought with fiat currency—meaning anyone, regardless of how much money they have, can invest in them.
In addition to enabling lower-income people to get into crypto, security tokens also increase liquidity because they’re easier to transfer than a share of stock. More liquidity means higher volume and faster adoption rates by traditional investors. It also makes it easier for companies to raise capital via ICOs or IPOs (initial public offerings).
Since Coinbase has announced plans to list its security token, expect more exchanges that deal in significant cryptocurrencies such as Bitcoin, Ethereum, Ripple XRP and Litecoin to do the same. Some experts say having security tokens available on meaningful exchanges could boost volume on those platforms by up to 30 per cent over time.
2) Fractional Ownership
With a growing number of big-name businesses getting involved in cryptocurrency and blockchain, it’s natural that we see non-crypto companies embrace these same technologies.
You might already be familiar with fractional ownership – that’s where one person owns (and has access to) a share of multiple properties at once, rather than just one.
Some vacation home owners choose to offer access to their property weekly through sites like HomeAway; others are beginning to offer small equity stakes in their businesses via blockchain platforms like Loci.
The jury is still out on whether or not fractional ownership will become popular enough for large corporations to start using blockchains for transferral. Still, as long as there are the top cryptocurrency exchange development company in India and worldwide, you can bet fractionalizing will remain part of our lexicon.
3) A Crypto Exchange in Every Wallet
Blockchain technology can also help consumers make more informed decisions regarding investing. With a crypto exchange in every wallet, cryptocurrency owners have access to a secure, decentralized marketplace where they can buy, sell and trade crypto assets.
Imagine if Starbucks took advantage of blockchain technology and issued its crypto token that coffee drinkers could use at their local branch and at any participating coffee shop as an example of how this might work.
While paying with a digital Starbucks Coffee Token (SBPT) would probably be cheaper than paying with dollars, SBPTs might take up valuable storage space on people’s mobile devices or wallets.
Again, such tokens are relatively easy to store offline—where space is limited—instead of bitcoin tokens. At some point, we may even see physical coins or certificates backed by blockchain-based assets or cryptos.
4) Futures Trading
Speculators and investors use futures trading to bet on cryptocurrency prices. Futures allow traders to bet that a cryptocurrency will increase in value (long position) or fall in value (short position). Some companies have emerged that offer derivatives-trading services, including BitMEX, Deribit, OKCoin and LedgerX.
Companies like Robinhood Crypto also allow consumers to invest in cryptocurrency futures. However, these types of investments are still unregulated. These digital options are not subject to traditional consumer protections like FDIC insurance like most cryptocurrencies.
5) Merging Fiat and Crypto
More and more companies are integrating cryptocurrency with fiat currency, meaning you’ll be able to spend your bitcoin wherever credit cards are accepted.
This trend isn’t just great for practical purposes as cryptocurrencies continue to gain momentum, converting cash into digital currency will likely provide more financial liquidity options.
Plus, as blockchain technology continues to improve, it won’t be long before we see big banks leverage crypto-assets in creative ways like smart contracts.
6) Educational Events
Educational events, seminars and workshops are an integral part of the Cryptocurrency trends for the next few years. The price of knowledge is low, but it’s priceless when applying that knowledge in real life.
Take every opportunity to get your name out there—you never know who might walk into one of your talks and become an invaluable partner in your future success.
We expect more educational organizations will hold blockchain technology-based courses each year as its acceptance grows exponentially on a global scale. It wouldn’t be surprising if many companies began to hire blockchain developers for their learning process.
Similarly, we expect there will also be significant growth in online educational platforms relating to cryptocurrencies.
7) Global Adoption
Some analysts believe that cryptocurrency isn’t a fad that will disappear anytime soon. As more and more people adopt it as an additional means of saving, spending, and investing money—with over 2 million bitcoin wallets now containing one or more digital coins—blockchain technology is only going to grow.
Deloitte projects that cryptocurrency-related blockchain investments will grow from $2 billion in 2017 to $10 billion by 2022. There’s also plenty of reason to believe that blockchain technology has applications outside of virtual currencies, too.
For example, blockchain could create secure voting records, help prevent voter fraud, protect data integrity, deliver medical records, facilitate financial transactions, provide trustworthy proof of ownership and enable smart contracts.
DeFi, or decentralized finance, refers to all financial products built on top of blockchain technology. These apps and dApps include EtherLoan, MakerDAO, Compound Finance, OpenSea and many more.
As DeFi continues to grow in popularity, we can expect these projects to bring about an exponential increase in Ethereum’s value (we already see a huge spike in Ethereum price thanks to these projects).
This can then lead to greater adoption rates and ultimately to a very bright future for blockchain technology as a whole. The evolution of DeFi will be one of our top cryptocurrency trends for 2022.
9) Decentralized Apps (DApps)
Decentralized applications (or DApps) are blockchain killer apps. A DApp is simply an application that runs on a P2P network of computers, just like any other P2P application.
You can install them and run them on your computer. They are built using decentralized software architecture that utilizes blockchain technology to promote openness, neutrality and independence of both users and developers.
As such, they often promote better security against hacking or manipulation by any single party. The best-known DApps today include BitTorrent and Bitcoin wallets. Ethereum’s blockchain also hosts hundreds of DApps such as Gnosis, Golem Network, Blockcat and Augur.
10) Crypto Intelligence Sharing Networks (CISN)
CISN is a research initiative where banks and other financial institutions can share and analyze cryptocurrency intelligence in real-time. This way, they’ll be able to identify potential criminal activities sooner than later and respond immediately.
The goal of CISN is not to block cryptos but rather ensure that all stakeholders have access to enough information about them at any given time.
It’s also important to mention that no one single institution will manage or own CISN; instead, it will run on an open-source blockchain platform and be governed by everyone who participates in it.
Another key point worth highlighting here is that CISN will only accept legitimate cryptocurrencies. Any tokenized assets from ICOs or exchanges are strictly prohibited, which means that crypto users won’t be able to use illicit tokens like Bitcoin (BTC) for anything associated with CISN.
It’s vital to identify any cryptocurrency trends that will impact your business positively or negatively. As with every new technology and marketplace, there will be ups and downs and good times and wrong—but it’s essential to be prepared with a sound plan.
With that said, consider what these top cryptocurrency trends have in store for you, your business, and your customers.
Also, you can contact the leading best cryptocurrency software development company In India to learn more about the crypto trends for 2022 and beyond.