NFTs, SHIB, DOGE, and Metaverse
The year 2021 has seen the value and popularity of the cryptocurrency and blockchain sector rise, with a marked growth in its adoption in our day-to-day life and in the media attention they receive. If we look back, we can identify the moment when certain very interesting trends appeared, and certain emerging patterns in the crypto sphere. Can you tell us what 2022 holds for us? These are the main events that set a benchmark for the crypto community in the year that is about to end.
New all-time highs
Hodlers came off very well from various hot spots recorded by some of the biggest cryptocurrencies this year. Bitcoin (BTC) hit several all-time highs quickly and consecutively, growing more than 200% throughout the year and reaching peaks of $ 67,000 in October and 69,000 in November.
Ethereum (ETH) also hit several all-time highs, with its market cap in November amounting to $ 4,891.70. Numerous altcoins experienced a similar revaluation to large cryptocurrencies, raising the bar for future valuations.
NFTs are now in the public domain
While non-fungible tokens were created before 2021, it was during this year that this type of instrument made its mark on the general public. The event that introduced them was precisely the NFT sale of Everydays: The First 5000 Days for $ 69 million by artist Mike Winkelman, also known as Beeple, at the renowned auction of the Christie’s house that took place last month of March.
This historic sale sparked renewed interest in investments in NFT and was a huge boost for tokens such as CryptoPunks, CryptoKitties, Bored Ape, and others like it. Nowadays, all kinds of brands (whether in the art, music, sports, gaming or any other sector) are developing and selling NFT in a booming market. There are many companies that are now joining this new trend, especially in the gaming and entertainment industry, so we will very likely see the birth of new NFTs linked to mass entertainment in 2022.
SHIB and DOGE
What is the limit of a joke? From the looks of it, the sky is the limit! Thanks to the support and outreach provided by Elon Musk, who has called himself “Doge’s father,” Dogecoin (DOGE) went from being a little-known meme currency to a serious challenger in the crypto sphere. The overwhelming success of the coin inspired the creation of a wave of canine currencies, notably Shiba Inu (SHIB). SHIB surprised many after establishing itself as deserving of a position in the top 12 of cryptocurrencies according to its market capitalization, which reached 26,000 million dollars.
While both meme currencies were created as a joke, their popularity has earned them the backing of investors and companies like Newegg, which recently started accepting SHIB as a payment method. These fun coins may be used in more formal settings in 2022.
Environmental awareness
The popularity of cryptocurrencies and the consequent increase in their adoption have also led to a greater degree of awareness about the carbon footprint they leave. The practices adopted by many nations and sectors around the world have raised great concern about environmental issues and, although the production of cryptocurrencies was previously low and was not of great importance, the energy cost of mining Bitcoin today has been a hot topic in mainstream media throughout 2021.
In this year, the Crypto Climate Agreement was also formed, which received the support of the main agents within the blockchain industry. It is very likely that the future of crypto assets will be determined by the maxim of obtaining mining processes that involve less energy consumption, as already offered by the StormGain cloud mining function that is at your disposal.
Government intervention
It is clear that governments had to intervene at some point as cryptocurrencies and blockchain networks gained popularity, regulating the sector to offer their support or to impose limitations and even bans in their jurisdiction. China is probably the country that had the greatest impact on the crypto sphere in 2021, since the Asian Giant prohibited mining in its territory. This meant great losses in the market, and forced the closure or transfer of mining operations to other geographical areas. However, we could see this move as a way to pave the way for the digital Yuán, the digital currency of China’s central bank, which could become a centralized digital currency and hold great influence in the near future.
2021 was also the year that the government of El Salvador gave its unconditional support to Bitcoin. Thus, the Central American country declared that Bitcoin will be legal tender last September, and created an official national crypto wallet that includes BTC worth $ 30 to its citizens in order to promote the widespread adoption of the currency. At the time of writing, El Salvador has acquired 1,981 BTC, and its chairman Nayib Bukele, followed by many other cryptocurrency traders, is proud to announce that he has bought in the fall.
The start of the metaverse
Metaverso is the buzzword in the new technologies sector, especially since Facebook has been renamed Meta. These virtual worlds will combine elements of virtual reality, video games, social networks and e-commerce, and present great and exciting opportunities for the crypto sphere, insofar as these could be used as electronic payment currency for the purchase of virtual objects, to demonstrate the authenticity of NFTs, or be used in DeFi apps for virtual economies, among other possible uses.
Does this mean that next year we will buy land in the virtual world and that we will invest our digital assets in buying clothes for our avatars in the metaverse? This may not come in 2022, but the truth is that the foundations are being laid for a very exciting new reality, and those pioneering users who offer their support to successful projects will find themselves in an advantageous position for years to come. Metaverse tokens such as Axie Infinity (AXS) and Enjin Coin (ENJ) are already well known, but it is more than likely that next year new blockchain projects focused on metaverses will emerge, and coins that could offer interesting investment opportunities.
What awaits us in 2022?
What will the world of cryptocurrencies bring us next year? The current situation caused by COVID-19 and its effects on the world economy suggest that BTC will continue to be considered a safe haven currency in the face of the devaluation of fiat money. It appears that its adoption by institutions and retail investors will also continue to grow as new DeFi and metaverses projects are developed.
We could also witness the creation and legalization of central bank digital currencies (CBDC) in 2022, not only in China or the Caribbean region, but also in Europe. Sweden has already announced its pilot program with the e-krona coin, which will run over the next 5 years.
In short, everything suggests that 2022 will be a very stimulating and dynamic year for the world of cryptocurrencies. The market could become very competitive and offer interesting opportunities for traders and investors. But one thing is clear: StormGain will continue to be the best platform to meet all your crypto needs. It offers you the best benefits and bonuses available in the industry to maximize your earnings. Stay tuned to the StormGain page and don’t miss any of StormGain’s upcoming promotions to win even more money! And if you are not yet a StormGain user, register here to start using StormGain’s integrated platform in a few seconds.
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(Forex Broker)
Comment by Hans
April 24, 2024
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