Blockchain data research firm Arcane Research looks back on the year in its final 2021 report and presents its crypto market predictions for 2022.
Arcane’s Dec. 28 The Weekly Update report focuses on Bitcoin and Ethereum, but also delves into other major coins, decentralized finance (DeFi), memecoins, non-fungible tokens (NFTs), Derivatives, etc. Arcane predicts what will happen in 2022 for each of the topics covered in the report.
The report states that Bitcoin has outperformed the S&P 500 in 2021. Bitcoin is up 73 percent this year, compared with the S&P 500's 28 percent gain, and Arcane sees Bitcoin continuing that performance next year. The S&P 500 includes the 500 largest companies listed on U.S. stock exchanges.
Arcane noted that Binance Coin (BNB) has seen huge gains this year, peaking at 1,600% in May, and is up 1,344% for the year. Based on this, coupled with the market capitalization growth of Solana and Terra, and the NFT boom, analysts expect Ripple and Cardano to drop out of the top ten list.
While ETH has outperformed BTC this year, up 455% versus 73%, other Layer 1 (L1) blockchains have outperformed ETH. L1 refers to the independent, base layer blockchain. In 2021, Terra is up 14,823% and Fantom is up 13,549%.
Developments in the crypto space this year have been largely defined by the massive sales of NFTs, with blockchain games such as Splinterlands and Alien Worlds counting around 526,000 daily active users, according to DappRadar. Arcane predicts that by 2022, traditional game brands will enter the NFT space and take advantage of this emerging market.
Coinbase went public on April 14 this year, with a current market cap of $72 billion. The five largest crypto companies scheduled to go public in 2022 are all currently worth more than $1 billion. Arcane believes there will be other companies with valuations above $5 billion, such as cryptocurrency exchange Bullish, which is currently valued at $9 billion.
In 2021, several bitcoin futures exchange-traded funds (ETFs) were approved to launch. Together, they currently hold around 846,309 BTC, an increase Arcane said will only continue in 2022.
When China banned Bitcoin mining, the global Bitcoin hashrate dropped dramatically, then recovered almost suddenly. The United States now leads the world in computing power, followed by Kazakhstan and Russia. Arcane sees miners spreading further into regions such as Latin America.
Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.
Anticipation surrounds Bitcoin's potential landmark success in 2024, driven by factors such as the impending approval of a spot Bitcoin ETF, collaborative efforts between regulatory bodies and companies, and the positive impact of the upcoming Bitcoin halving event. The reduction in Bitcoin supply following the halving is seen as a key element contributing to the digital asset's scarcity
SanyaRobert Kiyosaki predicts a financial crisis impacting the S&P 500 and retirement funds.
SanyaIn their quest for the world's most lucrative assets, investors often seek a surefire strategy to accumulate wealth. Is there truly a fail-safe investment that guarantees returns without risks?
BrianA report published by S&P Global concludes that stablecoins are more volatile than pegged fiat currencies.
OthersBitcoin’s risk-adjusted gains were third best, after only Solana.
OthersThe summer bounce in equity markets probably helped as battered crypto bulls cheer Ethereum's impending technological upgrade..
CoindeskDespite the downturn in the cryptocurrency market this year, Swiss cryptocurrency ETP firm 21Shares has seen record inflows of new cryptocurrencies year-to-date.
CointelegraphDespite crypto markets tanking this year, the Swiss crypto ETP firm 21Shares has seen its new crypto inflows hitting new all-time highs YTD.
CointelegraphDown 20% from its latest peak, the S&P 500 now meets the definition of bear market territory in a warning sign for risk assets everywhere.
CointelegraphThough the protocol offers an arguably lucrative yield of 4% per year, it's only available to accredited investors as of now.
Cointelegraph