Crypto Predictions for 2022

Despite the recent price plunge experienced in the first week of January, the price prediction for the large cryptocurrencies still looks good. However, there will be a lot of dynamics that will come into play that will greatly determine whether these predictions will be realistic.

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1. The Total Market cap of crypto will reach $5T. More institutional investors will come in crypto, and there will be another bullish momentum which attracts retail investors. This will not be a smooth sailing, and there will be some scary crash. But we will get there.
2. Web3 will become the largest target for VC investments: In 2021, we saw a huge increase of VC investment into web3. The big names like A16z are already heavily investing in Web3 and in 2022 more and more VCs will follow
3. High competition between Blockchains. In 2021, the dominance of Bitcoin decreased in favor of Ethereum. And in 2022, we will see Ethereum lose some of its dominance to other Blockchains as well. However, a lot of these other Blockchains will be based on the technology of Ethereum, and Ethereum will probably still remain the biggest smart contract platform.
4. Metaverse NFTs. In 2021 most of the hype around NFTs was for digital art NFTs. But in 2022, the hype will move to the metaverse. For an NFT to be valuable, it will need to have an actual use case in a metaverse.
5. DAOs Break Through: DAOs can be described as decentralized organizations with a wallet, and this might be the future of companies. In 2022 there will be a huge momentum for DAOs, similar to what we already saw for DeFi and NFTs.
6. Regulation. The US issued new regulations in 2021 as part of the US infrastructure bill. In 2022, the crypto industry is going to lobby hard to amend. In anycase, centralized stablecoins will become regulated, with an obligation to have enough collateral, and to let the US government freeze the fund of any coin holder. Other countries will follow the lead of the US and issue similar regulations.
7. An Algo Stablecoin Winner: My last prediction is that 2022 will finally see an algorithmic stablecoin that works reliably. We already have some, but they are not ready yet. This is important because algorithmic stablecoins are 100pct decentralized and cannot be controlled by government