Crypto Trends in 2022

Fumbi experts constantly observe events within and without the world of crypto, so we can always offer you the best solutions for investing in cryptocurrencies. We prepared a short overview if you want to know which projects and trends deserve your attention in 2022.

Continuous Development of Blockchain Gaming and Metaverse

In 2022, we expect a continuous trend of development in blockchain gaming. In 2021, the leader in blockchain games was Axie Infinity, which massively popularised the Play-to-Earn concept. Axie Infinity is a part of our Fumbi Index Portfolio. Therefore, you could also profit from the growth of this crypto asset.

Besides that, we expect massive progress in the metaverse’s virtual worlds, where lies an immense social, financial, and economic potential. More and more companies show an active interest in this new, digital world that will allow us to see how our virtual presence could complement the physical one.

A great example is various institutions already securing a firm place in the metaverse. For example, a New York-based real-estate firm Republic Realm purchased a digital property for an unbelievable $4.3 million in one of the virtual worlds, Sandbox, last December. Canadian company Tokens.com can also pride itself on a significant investment with a $2.4 million digital property purchase on Decentraland.

Shaping of Web 3.0

Transfer to a more sophisticated version of the internet, the third generation, is designed so that it solves the ongoing problems of the present internet ecosystem.

Web 3.0 is the third generation of internet services for websites and applications that will focus on using a machine-based understanding of data to provide a data-driven Semantic Web. The primary purpose of the third generation web is to create a more intelligent, open, and freer web environment.

Though the direction Web 3.0 will take is still not completely clear, 2022 will undoubtedly provide valuable information on this. Some believe that transfer to Web 3.0 is an opportunity for people to free themselves from megacorporations seated in the centre of our browsing on the web and social media. Instead, the people themselves would control their personal information and content shared on the internet.

Implementation of the Zero-Knowledge Proof

The zero-knowledge proof (ZKP) is a mathematical technique for verifying information without revealing the information itself. Researchers from MIT first introduced this method in 1985.

Implementing the zero-knowledge proof could be one of the answers for a decentralised way of responding to following rules and governmental regulations as this technology allows for verifying information without the need to reveal the information that verifies it.

The zero-knowledge proofs can bring more privacy into public blockchains, thus increasing the protection of sensitive data within the blockchain environment. However, the zero-knowledge proofs have a much wider potential use area, especially in security and privacy.

Growth of the Decentralised Finance Ecosystem

The main purpose of DeFi is to provide financial services without centralised providers via smart contracts operating on the blockchain.

In 2021, the sector of decentralised finance grew more than seven-fold, and with the growing global adoption of cryptocurrencies, we can expect a similar trend in 2022.

An essential part regarding DeFi is played by decentralised exchanges (DEX), which exchange assets and provide users full ownership and control over their assets. The main advantage of these exchanges is that they are available globally to anyone anywhere. Moreover, these exchanges don’t require KYC and AML verifications from their users. Therefore, they are becoming a favourite tool for investors that don’t want to share their private information and want to trade anonymously.

One of the critical factors that will influence the future development of DeFi is security. Thanks to the fact that more and more applications undergo security audits by external companies that independently inspect the security of smart contracts, the DeFi sector is evolving into an ever-safer and more lucrative place.

Institutional Cryptocurrency Adoption

Last year, many mainstream companies worldwide, including Tesla, Microstrategy, or Galaxy Digital Holdings, expressed interest and invested part of their capital into cryptocurrencies.

Similarly, giants in the field of payment services such as Paypal or Square brought their clients a plethora of new services directly related to cryptocurrencies. It is expected that in 2022 many other big companies and banks will join the crypto sector, which could help cryptocurrencies reach a whole new level.

The year 2021 has forever gone down in history with the first country in the world, El Salvador, accepting bitcoin as a legal tender. Following El Salvador’ example, several countries, including Panama, Guatemala, and Paraguay, expressed potential interest in adopting cryptocurrencies.

Among other events we can expect in 2022 are:

• continuous growth of interest from institutionalised investors
• continued boom of non-fungible tokens (NFT)
• the possibility of the launch of the first spot ETF,
• bridging of decentralised finances with physical assets (Real-World Asset Market)

If you want to capitalise on the potential of cryptocurrencies for your future, begin investing with our Fumbi Index Portfolio. We update the cryptocurrencies in the portfolio every three months – we add cryptocurrencies with the potential to grow and discard those which no longer meet our criteria. Furthermore, your investment is regularly administered by the sophisticated Fumbi Algorithm that follows the market’s growth as a whole and doesn’t rely on individual cryptoassets.

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