Massive changes in culture, more support from retail and speculative investors, and official changes in the crypto exchange sector all made 2021 an important year for cryptocurrencies.
To reflect its new stance, Tesla Inc. revealed in February 2021 that it would accept bitcoin to pay for its cars, along with a US$1.5 billion investment in bitcoin. Business analytics company Microstrategy said in the same month that it would invest another $600 million in bitcoin, bringing its total investment to about $3.6 billion.
Beeple, an online artist, set a record in March 2021 when he auctioned a JPEG file at Christie’s online auction for $69 million. Once again making history, the 255-year-old auction house welcomed Ethereum as a form of payment.
El Salvador made history in September 2021 by being the first nation to officially recognize bitcoin as a legal tender. Additionally, several Salvadorans now have access to financial services for the first time, saving an estimated US$400 million annually in remittance costs for funds sent over from abroad.
Moving on, in the very same month, when the Chinese government shut down the decentralized finance (DeFi) sector in 2021, it opened the door for a gold rush in other countries, especially the United States, Europe, Russia, and Central Asia.
Thus, we believe that this sector will be more happening this year and beyond and will highlight the following key crypto exchange trends:
There will be better oversight of cryptocurrency markets.
One of the tenets of cryptocurrencies is that they are decentralized and uncontrolled. However, it is only natural for more rules to be imposed after the broad use of groundbreaking technology. As per the Binance review, following a watershed year for the cryptocurrency exchange sector, new anti-money-laundering and counter-financing-of-terrorism rules are expected to be implemented in 2022. Vice President Joe Biden recently told the departments of Commerce and Treasury, among others, to look into the benefits and risks of digital assets and come up with a plan for how the government should regulate this area.
The effects of new cryptocurrencies will become apparent.
Increases in bitcoin use around the world totaled 881 percent in 2021 and more than 2,300 percent since the third quarter of 2019. Choosing which virtual currency to purchase will be difficult in 2022, with around 16,000 digital assets currently in circulation. Consider the top crypto investments of the past few years as a possible answer. For instance, Binance Coin (BNB) is the digital currency that powers the whole Binance network. At Binance, the world’s largest cryptocurrency exchange, investors saw their initial 2021 investment grow by 1,300 percent. New digital currencies like CRYP, Luckyblock, and ARC (formerly DePo) are linked to groundbreaking technologies that could change their industries in a big way.
The popularity of NFTs will continue to grow as their legitimacy improves.
Digital assets that represent real-world items are called non-fungible tokens (NFTs). They are recorded in a distributed ledger and hence safe from erasure, modification, or duplication. The efficient protection of vital documents and the ease with which rights to both digital and physical property can be transferred are two of the many advantages of this technology. Despite its recent inception, the NFT trend is predicted to gain trust in 2022, especially among enterprises and marketers, as use cases begin to broaden. For example, NFTs could help show that supply chains are sustainable, which would reassure customers that their purchases were made in an honest way.
Greater public acceptability will open up new challenges and possibilities.
Over 50% of financial professionals expect bitcoin to surpass fiat currencies (government-issued money not supported by a commodity like gold) by 2050. Although cryptocurrency payment methods are here to stick, the crypto exchange sector should anticipate facing new challenges as more customers, investors, companies, and governments use cryptocurrency. The more extensive your user base, the more intricate your payment process must be. Cryptocurrency exchanges confront issues of custody, legality, and liquidity as the market expands.
As the cryptocurrency market expands, it will become more important to manage the risks associated with trading cryptocurrencies and comply with the many rules and regulations that have already been implemented. As the use of decentralized finance continues to grow, experts say that the first billion-dollar theft will happen in the world in 2022.
Shiba Inu, a meme cryptocurrency, will climb by $0.0000144 by the end of 2022.
Last year, Shiba Inu peaked at $0.00008, but since then, it has dropped by nearly 80% to its current price of $0.0000118. ShibaSwap is a growing decentralized exchange, and as a result, people are finding more practical applications for it. Crypto wallet users expect a 12-month price increase for Shiba Inu, reaching $0.0000144. This represents a 22% increase over current levels in percentage terms. You may transfer and receive cryptocurrencies like Ethereum, Bitcoin, and Shiba Inu by using a crypto wallet to store and protect your private keys. Hardware wallets, such as the USB-shaped ledger, and mobile apps, such as Coinbase Wallet, make using cryptocurrency as simple as using a credit card to make online purchases. Nevertheless, some analysts are quite pessimistic about the Shiba Inu pricing going forward because of the impending competition from P2E networks like Tamadoge.
The crypto industry is set for growth in 2022, thanks to the positive effects of the above trends. Ultimately, it boils down to using the necessary tools to provide crypto traders with the best experience possible. Because cryptocurrency traders depend on how quickly they can withdraw and deposit funds, any crypto exchange should put this at the top of its list of priorities.
With a growing client base, crypto exchanges that prioritize flexibility and new features will continue to exceed their customers’ expectations. As the sector expands and becomes more sophisticated, the exchanges that maximize automation and unification will have a considerable competitive advantage. This is because they will be able to put more resources into strategic initiatives and have less time spent on administrative tasks.