These are the 4 trends of 2022 For Investors To Watch

2021 is a breakout year for cryptocurrencies and blockchain technology. Token prices, technological advances and the introduction of Layer 2 have exceeded all expectations. The NFT market has grown dynamically. The NFT standard ERC-721 topped ArtReview’s annual “Power100” list. The Wall Street trading firm recently hired a crypto announcer and DeFi trader with no experience in financial markets for its newly launched crypto arm.

Price cycles can play an important role in market euphoria, but in terms of the continued growth and expansion of the digital asset ecosystem, 2021 is just a kick-start.

Can the upward trend be stopped in 2022? Here are four predictions for the new year market.

1. The year of the DAO and the ownership economy

Like the Metaverse, DAO is a new concept that has been widely accepted by users over the past year. This trend is in line with the general intellectual, cultural and moral environment of the current era (the era of living with the Covid pandemic). The global workforce has reevaluated what it means to work together in a completely decentralized way.

Variant Fund’s Jesse Walden, an investor at Gro, has spoken many times about how technology enables us to get closer to the “property economy”. In it, individuals can actually participate in some of the platforms they contribute to.

This collaborative economic model helps ensure better interaction with users over time, he says. This makes platforms more flexible, integrative and innovative. They are operated in optimal condition and use incentive marketing to increase the effectiveness of the network.

An example of a property economy in the workplace is Uniswap. This is a cryptocurrency exchange that enables traders to buy and sell digital assets for a transaction fee, just like on a centralized exchange. Unlike its centralized counterparts, however, Uniswap is open source and user owned. It doesn’t treat these transaction fees as profit. Instead, it distributes fees to traders in order for the market to provide liquidity and make the product useful to ensure a smoother experience.

Third-party developers have built an extensive ecosystem around Uniswap. This further increases its popularity and functionality, outperforming centralized exchanges.

ConstitutionDAO is the best-known DAO-related story of 2021. It was a failed attempt by a group of crypto users to buy a rare copy of the United States Constitution of the first generation at auction.

Even without success, the project was well received by the community. At the end of November, another DAO won a tender for another document – the Declaration of the Anti-Slavery Convention.

Collecting crowdfunding is one of the use cases for DAOs. After Gro DAO used DAO to launch the GRO token, it has now built a decentralized marketing team made up of members of the community. G-Force was hired to improve two important KPIs. The first is the total locked in the Gro log. The second is the size of the global gro online community. Members are rewarded with GRO tokens for their contributions.

The G-Force initiative aims to demonstrate the usefulness of DAOs in building a decentralized organization whose specific purpose is to accelerate the development of a project. It’s not just about project management. It is also an exercise that tests the ability to engage the community through marketing and promoting the project.

Over the next year we will see more experimental initiatives around the DAO that will help make it more popular. Projects will increase the use of DAO-based crowdfunding to complement or replace traditional VC funding.

2. Multi-chain thrives

Over the years, it seemed like no platform really rivaled Ethereum. Many first generation smart contract platforms failed to keep up and were gradually being forgotten. But as the DeFi rollout skyrocketed in early 2020, Ethereum’s restrictions, particularly high gas fees, quickly became the focus of the market. 2021 has seen an explosion in activity on Layer 1 and Layer 2 sequences, with BSC, Solana, Avalanche and Polygon being the standout projects.

It may come as no surprise, then, that cross-chain bridges and multi-chain protocols will see increased transaction volumes and users by the end of 2021. Curve Finance, the most popular DeFi application according to Total Value Locked (TVL), currently works on seven chains, a mixture of Layer 2 and Layer 1.

In 2022, Ethereum’s Layer-2 is likely to flourish, replacing Layer-1. Popular Layer-2s like Arbitrum and Optimism are attracting users from the community and the zero-knowledge rollup is starting to join the DeFi ecosystem, including the Gro-Event hosted on Argent zkSync.

The multi-chain ecosystem has tremendous benefits, especially in reducing transaction costs and creating multiple access points for new users. So we can expect this trend to continue, with more protocols being set up on multiple chains and further improving the user experience with multiple chains.

3. Web3 joins the game

NFTs, DAOs, and Metaverse are simply part of a broader journey into the Web3 era that will become buzzwords in 2022. Elon’s brother Kimbal Musk is giving everything for this transition with its own DAO, the Web3 charity, which deals with food justice. In a recent interview, Musk discussed the idea that the creativity of the community makes Web 3 possible. This effectively ties together all of the related developments that we are currently using.

In 2022, the boundaries that define various digital asset segments will become increasingly blurred. NFTs, DeFi, decentralized metaverses and DAOs become part of our online interaction and are collectively referred to as Web 3.

4. The market is cooling down but not freezing

Price predictions are always a very difficult subject, but everything has its rules, the market can rise and it can fall. At the beginning of December 2021, most of the crypto market was eagerly awaiting another big bull run. However, based on previous cycles, a recession is still possible.

However, that prediction does not mean that the entire market will experience a serious downturn. Remember, the sector has come out stronger than ever since the 2018 and 2019 crypto winter. With the dynamism and attention of the current community, this long and gloomy period seems difficult to repeat.

In addition, from a trading and investment perspective, there is a big difference between 2018 and today. In the past few years, a $ 275 billion DeFi market has emerged offering users protected profits through stablecoin profit farming that was not possible before. Gro products allow users to capitalize on a variety of sources with proprietary, low-risk tokens or more aggressive (but still market-neutral) stablecoin strategies.

As price cycles take place, the market itself won’t freeze like it did in 2018. Additionally, the above trends have provided more than enough momentum to warrant advantage.

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