Hello guys,

Perfect occasion to write about what is happening on the crypto market for 2022 with MyCryptoOutlook2022 ! Coincidence or not, I just wanted to write about this lately but did not want to be another dude writing on the crypto market for the coming year... But, well, I guess, it was a sign to share my thoughts on this , so, here they are ! Hopefully you will gain some insights from this ! Let's go !

A BIT OF CONTEXT

So, what is waiting for us in the coming year ? Well, let's have a look into our cryptal ball... Or even better ! Instead of guessing the future, let's have a look at what happened recently to help us there a bit, for, as you may know, history does not repeat itself but it often rhymes.

Alright, so as you surely know, this is kind of a bloodbath in the crypto market lately... That is the least we can say. You just buy the dip & it keeps dipping, like an unwelcoming infinite loop... But why is that so ? Let's understand the reasons for this & if this is a short-term trend or a general dynamic that is here to stay.

• The main reason for this early crash & what I think will be a general trend in the crypto market for 2022 is the uncertainty of the FED's decisions. Due to the highest inflation in ages, the FED can no longer pretend that these high rates of inflation around the world are of transitory nature. They are partly caused by the massive congestion due to the economic upturn following the lifting of COVID-19 restrictions and, unfortunately, they are here to stay. There are estimates that major ports delays will be expected for the summer of 2021... So, be prepared to buy another dip !
• Another reason that might explain the crash, also related to the FED's decisions, is the political turmoil regarding cryptocurrencies. The Central Bank of Russia has planned a ban for mining & trading cryptocurrencies recently. As you are probably aware of, China is no friend to cryptocurrencies unless it is the digital yuan that they have full control of. The US has no will to ban cryptocurrencies but Joe Biden lately said that this industry seriously needs heavy regulations so that crypto markets do not represent a threat to the financial system. To be frank, this was to be expected in the end. Wasn't it the purpose of cryptocurrencies in the beginning ? China & other major states (mostly Russia and countries that were welcoming to miners) seized the opportunity when this was aligned with their interests, but it felt to them lately that in the long run, it can be a major threat to their power... The many excuses from China for instance are proof of that.
• An important reason for this crypto crash is the removal of funds from VC. As always in the market, the VC are super powerful due to the massive funds they can invest. They can literally move markets by themselves. As cryptocurrencies are seen as a super risky asset, they prefer safer asset for now & the decisions of the FED to raise interest rates in the coming year also helped the VC managers to make up their minds... If they plan to remove liquidity from the stock market, there is no reason that crypto markets will be exempt from this. That's why, according to some analysts, the bubble in cryptocurrencies has burst & we may see a bitcoin trading below 30, 000$... The investments from venture-capital firms into early-stage start-up has also slowed down drastically in the past year... and the trend is also here to stay.

Not super joyful outlook, but facts are facts. So, let's be as realistic as possible predicting what is coming. So, let's have a look at the predictions for the crypto market in 2022 as a general overview ! 

Remember that you can buy all these juicy moon potential coin on BitYard if you haven't already ! Link at the end of the article !

PREDICTIONS FOR THE CRYPTO MARKET IN 2022 -- ALL IN ONE SITTING 

So, 2021 was quite a year for crypto, let's be honest. It will be quite hard to top that. Mainstream adoption is on the way, El Salvador is gaining momentum with their bold decision of making Bitcoin legal tender & so many moonboys ready to jump on the next promising coin out there... So, I guess, 2022 will be quite the opposite. And so far, I guess I am winning my bet... but let's understand why I believe so & please leave a comment if you share another point of view !

• Removal of liquidity in the markets. Drawbacks from newcomers as they can be misled (thank you Elon) & removal of funds from VC mainly. As it is often the case in crypto, it is the newcomers that don't understand the fundamentals & trade on some TikTok advice that end up panic selling & losing it all. Plus, the removal of VC, as explained earlier, will remove lots of liquidity from crypto to safer assets. So, bloodbath, and it is already there...
• NFTs will keep going up but it will be more reasonable. The bubble around celebrity-branded NFTs will burst at some point & people will realize that it cannot be traded like art. Nevertheless, the general trend for NFTs will remain strong with generative art & big impactful projects with real value.
• Ethereum will remain big as Eth2 is coming. Though, some altcoins can gain big time in 2022, no one out there, except for the King of crypto, is capable of competing with Ethereum in the coming year. I guess most of you have watched the interview from Vitalik by Lex Fridman explaining that the transition will be smooth despite all the technical difficulties. And so far, no lies. The Beacon Chain is merging with the current Proof-of-Work chain & with sharding and roll-ups on the way, Ethereum will really be able to scale ! Also, so many more bridges for Ethereum so it clearly is here so stay !
• Meme coins will have a hard time this year... Well, they are like a big lottery but some meme coins have the potential to turn into real projects, like Shiba Inu with ShibaSwap DEX, for instance. But a very risky bet if you want my two cents on this.
• Metaverse coins will get big. With the recent new paradigm shift initiated by Facebook now Meta, coins like Decentraland & Sanbox will be big this year. No need to remind you that a piece of real estate in Decentraland was sold for a whopping $ 2.4 million.
• Slowing down of the main altcoins out there. I believe that all the main Ethereum competitors will experience a decrease in value in 2022, as Eth will gain more ground with the consensus layer & this will be a time of testing for these networks. I am talking of course of Polkadot, Terra, Solana & Avalanche. So far, Solana has experienced a massive drawback in value with some "issues" on their network. Terra & Avalanche seem super solid so far but we will see on the long run (personally love these 2 projects, have a deeper look at them if you can). For Polkadot, it will all depend on the Parachain Slot Auctions (maybe an article about the process & everything related to this in the near future).
• This is just a bet but I imagine PoW being trendy again in 2022. Bitcoin has proved that PoW works & Kadena, Handshake are showing that it has a bright future. With all the transition from PoS, I find PoW regaining popularity in the coming year very likely : it was first, it has proved efficient despite being not environmentally friendly & it is also way more decentralized.
• Lots of ban of mining & trading from many countries but also lots of adoption as legal tender as well. Will be a split between pro & anti crypto states. Small countries or countries that are dependent on $ will tend to go all in with Bitcoin while authoritarian governments or those that want to have a strong grip on their currency will ban mining & trading cryptocurrencies. Will see how it plays out but can be very interesting.
• There will be some heavy regulations on the way for crypto. It has already been announced but the focus from the government will keep growing for the industry. According to some analysts, “2022 will be a big year on the regulatory front, no doubt. The interest from various governments, and especially the U.S., to bring regulation into the crypto space has not been higher.” And lawsuit like that of Ripple will become rare as clarifications will be made by governments for 2022.
• Lots of payments innovation. Payroll with Juno, Streaming Payments with Superfluid, Quadratic Payments with Gitcoin & Charitable giving with The Giving Block - more on that at this end of this article. Also too much to write about this so maybe another article for this one - stay tuned !
• Defi getting bigger in adoption with TLV going up despite VC leaving - so much more to say also there, the details in another article if I find some time to write.
• A big surge in fan tokens & fan NFTs. It is just the beginning with Sorare but really like the Metaverse this is just the start of something big. Content creators & cryptocurrencies will go along really well in 2022 as well !
• Axie Infinity & other Play-to-Earn games will continue rising. Some people from the industry even say that in 5 years, the vast majority of games will pay you to play. 
• Tokenization of NFTs. Since they are very illiquid asset, there are some initiatives to develop some form of tokenization of it like PleasrDAO & PartyDAO building collective binding infrastructure. Again, this is just the beginning.
• Surge in DAOs. They are not well understood by everyone now, but will play a big role in decentralization & how people connect & automate decisions in the future. 2022 will be no different than 2021 for that matter but this will get so much more traction. Again, another article for this also...

Alright, I guess I will just stop there & keep the content for other articles because there are so many more interesting things to say & I just really want to dive deep into them. So, these predictions will give you a general idea of what 2022 will be all about. Probably less intense than 2021 but lots of evolution on the way, that's for sure. Before I leave you, quick words about our sponsors & as usual, take care & see you on the next one !

QUICK WORDS ABOUT THE SPONSORS 

Please have a look at https://www.bityard.com/ to see if my predictions will work out in 2022. This is the exchange you don't want to miss, and from the very words of Bitcoin.com that needs no introduction anymore : "BitYard copy trading system doesn't only benefit copiers. For listed traders, the copy trading system also brings them extra incomes." So, trust me you are good to go, just follow the link & enjoy this amazing experience.

A nice shout-out for this amazing project. Go have a look at what they do, it is awesome. Jack Dorsey was just wrong, Web3 is not only about VC controlling what is happening on the Web, it is also about DAOs, organizations and people working to give everyone their fair share through technology. Big fan of the project, wish them well.

Thanks for reading until now & give me your predictions in the comment before you go !

Cheers,

Matthieu