27 January 2022: When it comes to the remainder of 2022, there are multiple areas in which you can place investments depending on what you are most bullish on. Non-Fungible Tokens (NFTs) had a monsterous run in 2021. Decentralized Finance also famously made a massive run in the summer of 2020, literally dubbing that quarter DeFi summer. Now, with multiple Silicon Valley tech companies betting big on the metaverse, it may be the next big thing. So what truly is the better bet for 2022?
Don't Bet on These: Bitcoin ETFs and Dog Coins
The latest Bitcoin ETF to get the axe by the SEC was Fidelity's, which was denied today. While Bitcoin ETFs would serve as an obviously bullish development for the likes of Bitcoin (and really the cryptocurrency space in general), the SEC has made it abundantly clear that it does not feel confident in the market's volume domination by Tether. In fact it has cited preventing "fraudulent and manipulative acts and practices [in order] to protect investors and the public interest" as a main reason in denying Bitcoin ETFs.
Another bad bet for 2022 is the resurgence of meme coins, - particularly dog coins. The two largest meme coins still to date - Dogecoin and SHIB - can be found soundly in Bityard's Spot market analytics. While extremely popular in 2021, these coins do not have utility other than being enjoyable and after absolutely massive declines from their all time highs (80% for DOGE and 75% for SHIB), many retail holders are sitting at a loss.
Keep Your Eye on DeFi's Growing Usability
Despite a major decline in cryptocurrency markets, the top DeFi applications and protocols have been a sort of "waiting room" for many holders choosing not to offload their coins and tokens. These DeFi protocols allow users to participate in robust borrowing/lending markets, stake their tokens, participate in liquidity pools, and more.
There are a number of popular DeFi protocols on Bityard, including the following:
While there is no guarantee all of these protocols will see full adoption and sought after longevity, many have been maturing for years. Aave for instance just released its V3 protocol to the public today.
As the actual utility of DeFi protocols continues to mature, expect to see the total value locked in DeFi to dramatically increase over time. This is expected and predicted to hold true through 2022, even during an extended market downturn.
Wide Scale Adoption is Keeping NFTs Relevant - For Now
It seems like every single non-blockchain entity is either investing directly into NFTs, minting their own, starting exchanges, or participating in the NFT space in some fashion. Over the course of 2021, the NFT space went absolutely parabolic as billions poured into different NFT collections, exchanges, and protocols. This includes investments from individual artists, celebrities, athletes, institutions, exchanges, and companies.
With such an immense year of adoption and other interesting crypto-related sectors on the rise, it seems unlikely that the NFT space will duplicate its run from 2021 here in 2022. However, anything is possible.
Top Coins to Bet Big on the Metaverse
Arguably the greatest specific sector of opportune growth for 2022 is found in the developing metaverse space. The metaverse is a loose term more or less dictating the development of a digital world that has been adopted from the first coining of the word by sci-fi writer Neal Stephenson in 1992. This includes many different specific areas, one of which is the highly anticipated rise of blockchain gaming.
With nearly every major tech company (including the likes of Microsoft, Apple, & Meta, with Meta even stealing staff from the others for its plans) interested in the metaverse, cryptocurrency projects already ahead in this area have garnered some extra attention. On Bityard, the industry's top performing metaverse-related cryptocurrencies are available.
The top five coins to watch for in relation to the metaverse are the following:
All of these coins have eclipsed market caps of over $1 billion USD and have seen steady engagement, development, and interest.
So what is the better bet for 2022 - DeFi, NFTs, or the metaverse? Judging by the outside interest, the metaverse stands as arguably the best sector to enter due to the high degree of attention it is receiving. This is closely followed by the bluechips of DeFi, including the likes of AAVE and UNI. With so much development happening in both sectors, so long as sound investment strategies are being utilized in foundationally sound cryptocurrencies, there is a high ceiling in 2022 for both.
The Giving Block
Because this article is a part of the Publish0x Bityard writing contest, Bityard will be donating 50,000 SHIB through The Giving Block on behalf of this post! The Giving Block facilitates cryptocurrency-based donations to select charities. Be sure to check them out here.
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