Cryptocurrency has gained a lot of popularity in the last few years. While Bitcoin remains the best-known cryptocurrency, many other cryptos have entered the market. So, what will come for this rapidly growing crypto market in 2022? Let’s see!

A spike in Alt Coins investment

In 2021, Bitcoins dominated the market with around 70% market share of all the cryptocurrencies. However, with other crypto coins starting to show their potential, Bitcoin share experienced a downfall in the first quarter of 2022. Alt coins, like Solana or Ethereum, have gained widespread acceptance due to the increasing number of projects being built on these options.

Thus, it is safe to say that Bitcoin is not the only dominating currency in the market. Based on the type of blockchain project that attracts you, it is recommended you buy cryptocurrency accordingly. Also, open an account with a good cryptocurrency exchange that will allow you to buy Sushi tokens and manage your crypto assets on a secure platform.

Metaverse is gaining acceptance worldwide

Last year, Facebook branded itself to Meta as a way to accept the Metaverse that is expected to come in the near future. People are still confused about the metaverse, though. But, 2022 will see a growing acceptance of the metaverse. Just imagine living the best quality of life in a parallel universe or living with your loved ones by simply entering the metaverse. No matter whether people are ready or not, the metaverse is closer than you think.

There will be a rise in NFTs

NFTs are everywhere today. Thus, 2022 could be a breakout year for you, both as a creator and a collector. Interest in NFTs dealing saw growth in January 2022, probably because NFTs are priced in native network tokens. These tokens became cheaper in the US terms. Be it collecting well-known NFTs or picking the exclusive ones, 2022 is the best year to set you up as an NFT collector.

Web 3.0 will have more applications

Web 3.0 is not a new thing today. This web evolution would make the Internet more intelligent with powerful AI systems. This will have some implications for metaverses, blockchain-based technology, as well as crypto assets that will align with web 3.0 applications. In 2022, you will see the confluence of web 3.0, which focuses mainly on decentralized power to bring in seamless technology in our lives.

Companies or investors may raise crypto allocations

With cryptocurrency becoming the mainstream, investors and companies alike are adopting it into their portfolios. Moreover, many financial advisors advise crypto allocations of a very few %age points. More and more companies are allocating cash to cryptos or other digital assets. As this shift gains momentum, more money will likely flow into cryptocurrencies.

Some cryptos may become valueless too!

Though general trends towards cryptocurrency acceptance seem to be increasing, some cryptos may lose their value too. Why? Well, there are thousands of cryptos out there competing for a space in the market. And, it is inevitable that some will lose their value. If the most well-known cryptocurrencies topple, there won’t be much support for lesser cryptos that are no more useful.

Bottom Line

There is no doubt that cryptocurrencies have exploded in valuation. However, they still need to go a long way toward being used as mainstream currencies. If digital currency co-exists with paper currency, it will be difficult for investors to predict which currency will survive. Or, which currency will dominate in the long run? If you plan to invest in this highly volatile market, it is good to talk to your financial advisor and find out if it would play a major role in your portfolio.