Challenges Ahead For Crypto Industry in 2022! These Diamonds Could Be Exception!
Crypto town has enjoyed gigantic gains over the past couple of years with considerable volatility. However, the past couple of months turned out dreary as there are no vigorous signs of price bouncing back. The new year is around the corner there is raising coercion of regulatory uncertainties and US inflation in 2022. Yet evolving crypto space would lay the foundation for emerging cryptocurrencies that are cost-efficient and agile.
Regulation and Inflation To Terribly Impact Crypto Space in 2022!
The crypto space plummeting with no proper trade signals and with negative volatility. One of the analysts reminded 2014 bear market where Fed tapered interest rates. Relatively, US Fed has announced a tapering of interest rates in 2022 on a gradual basis. The broader crypto market has started to plummet post the decision by US Fed and still failing to regain momentum.
If once tapering of interest initiates in January, it would negatively impact the cryptocurrency prices. However, after the groundbreaking rally in 2013, tapering of interest rate hikes in 2014 has put the entire crypto market under a bearish reign for the entire year.
In addition, most of the Asian nations especially India, Russia, and China are outlining a bill to restrict cryptocurrencies. This is one of the rising concerns amongst traders if they pass a bill then there are possible chances of market disruption in 2022. However, as traders and people plead Crypto as the future of finance, certain regulations might impact the price for the short term.
Which Are Those Diamonds Set To Glitter in 2022?
There might be a drastic shift in the trend in 2022, where cryptocurrencies that are cost-efficient and agile are expected to rule the space. Whilst 2021 was the year for diversification of different cryptocurrencies especially tokens evolved based on DeFi, NFT gaming, Metaverse, and Web 3. Now, the next big thing in 2022 that the crypto space would see is being the results of the above projects.
In 2022 Crypto town would pivot towards fetching the results of diversified cryptos that emerged in 2021. Like, Axie Infinity was one of the top players amongst the NFT gaming tokens, Terra (LUNA) in DeFi and Decentraland (MANA) in Metaverse. Now projects which are cost-efficient, fast, and agile have the massive opportunity to raise their bars in 2022.
Collectively, probably inflation and regulatory uncertainties would threaten the crypto fraternity in the upcoming year. However, projects which have advanced features are expected to become the diamonds of the crypto space in 2022. Notably, Polkadot, Polygon, Terra, Algorand, Elrond and many are in line with groundbreaking features.Source