4 Cryptocurrency Trends for 2022

Since the initiation and launch of Bitcoin (the genesis of cryptocurrency) in 2009, every passing year has brought about new trends that have continued to expound the ever-growing crypto industry. 2022 is no exception by all indications, as more speculations of the rapidly-evolving industry continue to arise. Here are some of the leading cryptocurrency trends for 2022.

1. Crypto ETF approval

There has already been a notable breakthrough in Crypto ETF, with the first Bitcoin ETF appearing on the New York Stock Exchange last year. The development represents a new and more standard way to invest in cryptocurrency.

The BITO Bitcoin enables investors to buy in on cryptocurrency directly from conventional investment brokerage, and they can do this from accounts they already have, such as Vanguard and Fidelity.

However, some experts say BITO ETF isn’t enough; while the fund is linked to Bitcoin, it doesn’t certainly hold the crypto directly. Instead, the fund holds Bitcoin futures contracts. The SEC has considered ETF approval multiple times over the last few years, but BITO is the first to gain approval.

Investing in a crypto ETF like BITO can be risky as any cryptocurrency investment. However, cryptocurrency risk management can help determine your crypto trading and investing approach.

2. Ethereum 2.0

Ethereum 2.0, also known as Serenity, was launched and introduced in the market in December 2020. However, the upgrade is expected to happen in chunks this year. The blockchain system has yet to entirely change Proof of Work (PoW) to Proof of Stake (PoS), which ultimately indicates that the latest Ethereum 2.0 is yet to reach its full potential.

However, much of Ethereum’s transition from PoW to PoS is expected to take place this year, hinting that the network will be able to achieve scalability, lower energy usage, and deflationary Ether. With all these myriad benefits, Ethereum usage is expected to grow more as 2022 unfolds.

3. Cryptocurrency regulation

The regulation of the global crypto market has continued to take new forms over the years. This will likely continue because the industry is still in its infancy stage. Legislators in Washington D.C and globally are setting up laws and establishing guidelines. This will help make cryptocurrency more secure for investors and less attractive to cybercriminals.

However, like most things with cryptocurrency, the regulation might come with hurdles as different agencies may or may not have jurisdiction to oversee everything. Transparent regulation would mean the removal of a significant obstacle for cryptocurrency since U.S companies and investors are currently running without clear guidelines.

4. Wide Web 3.0 adoption

Web 3.0 is one of the largest evolving cryptocurrency trends in 2022. Individuals who wish to finance their websites without depending on prominent organizations that own servers or charge exorbitant fees have an enduring solution with Web 3.0.

Investors can benefit from Web 3.0 by being able to personalize the internet or avoiding the occurrence of a single-point failure. In addition, the broader adoption of Web 3.0 will positively impact cryptocurrencies, including Ethereum, Helium, and Livepeer.

Endnote

While there will ultimately be plenty of speculation around cryptocurrency, the truth is that it’s still a new investment. That’s why it’s critical to watch for cryptocurrency trends. The future of the crypto market will have sways, but the trends appear positive, and it might be the best time to explore the cryptocurrency space.