Cryptocurrency and Blockchain had a breakout year in 2021.
Just look at the numbers: 80 million unique crypto wallets; Bitcoin and Ether grew 60% and 407%, respectively; El Salvador introduced Bitcoin as its official currency; The NFT market generated $2.5 billion in trades. Even Burger King announced a whopper when they took part in the NFT promotion. Impressive? Absolutely. Have we reached a point where crypto and blockchain are reaching mass adoption? Not quite.
Although DeFi, cryptocurrencies, blockchains, NFTs and a host of other products came online in 2021, only about 1% of the world’s population has a unique crypto wallet. Media coverage, financial institutions, and companies with big marketing budgets jumped in, making it seem like mass adoption was already there. But in reality we are not there yet.
However, we assume that this will change in 2022. From more creative crypto entries to the impact of inflation and new technologies, here are five trends we’re anticipating in 2022 and what you can do to help meet the challenges ahead.
Expect more diverse applications for crypto
Consumers are mostly aware that crypto exists, but they don’t understand the benefits in their daily lives. For many, it’s viewed as an investment vehicle for institutional or retail investors, a novelty, or something that will appeal primarily to the trendiest of Gen Z. With blockchain gaming and GameFi, as well as reward platforms that exchange airline miles for crypto, on the horizon, expect that to change in 2022.
We’ve already seen some of this in 2021 with NFTs aimed at art collectors and sports enthusiasts. We will see it expand to other areas such as wine, sneakers and other collectibles, attracting new users.
Understanding these technologies can be challenging for the mass consumer, but if NFTs are committed to something they know and are passionate about, it will grow in this community. Keep an eye on entrepreneurial companies moving into these areas – especially collectibles – to expand the reach of crypto and blockchain in 2022.
A surge in crypto apps
Crypto is considered to be technically complicated to hold, and even the terminology is difficult for the layperson to understand. Crypto and blockchain must be easy to use and understand before mass adoption can take place, and we will see that in 2022.
Cheaper blockchains allow new users to get started with DApps, which are decentralized applications running on a P2P or blockchain network. They do not require users to provide their personal information. It starts with global payments for digital assets, recurring purchases or tips, but will expand to include multiple types of transactions, which will only increase user adoption.
