Metaverse, NFT and DeFi will rule the crypto space in 2022

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The year 2021 has been nothing short of phenomenal for the crypto industry in India and around the world. The pandemic has put the crypto world in the spotlight, and with a global market now realizing the potential and possibilities of blockchain technology beyond their initial skepticism. Almost every day, new projects surfaced, solving another real world use case via cryptos, NFTs, DeFi, etc. And the hype around Web3 and the Metaverse had taken online communities by storm.

India was at the forefront of the crypto buzz, with millions of people vying for their favorite cryptos. India has become the second nation in terms of crypto adoption, and given the current skill that seems to be hit by the multibillion dollar opportunity knocking on doors, 2022 could arguably see India. become the world leader in the derivation of public services from decentralized disruption, provided the government takes a progressive regulatory stance. Here is my quick rundown of the top crypto trends expected to reign in 2022.

Improved crypto penetration in rural and semi-urban areas

2021 didn’t just have Tier I cities relying on cryptos to hedge their fiat portfolios. Levels II and III have steadily taken the lead in crypto adoption, especially after the pandemic. Around 47% of Indian crypto users have entered the crypto space in the last 6 months of 2021, while crypto has emerged as a new way to make money online.

Thanks to increased internet penetration and access to smartphones, crypto adoption in the unbanked backcountry exploded in 2021, with over 700% growth in user registrations in markets. small towns, like Guwahati, Karnal, Bareilly, spearheading the adoption of crypto beyond urban centers. Since cryptocurrencies are digital assets, they require basic infrastructure to thrive. As more people go online and understand crypto better, 2022 will continue to see the trend of rural crypto adoption in India.

Additionally, current crypto demographics suggest that more women will lead the pack in 2022. When it comes to age, people under 35 held a 66% share of the user base. India of crypto in 2021. We can expect more Indians to join the crypto revolution. from all genders, all walks of life and all phases of life towards a more equitable distribution of wealth and multiple employment and growth opportunities through crypto in the coming year.

The rise of DeFi platforms

DeFi was a big hit in 2021, and by March 2022 DeFi contracts will have amassed a combined value of $ 41 billion. The DeFi and DAO community has benefited from substantial gains from yield farming, which is very popular on DeFi platforms. 2022 will undoubtedly be a pivotal year for DeFi and decentralized platforms, like DEXs and dApps, as they would be the underlying infrastructure of Web3.

Most platforms are built on Ethereum. Once Ethereum fully converts to PoS consensus in 2022, the value of its network could increase dramatically. Cross-chain networks such as the MATIC network, Solulab and others, would also prove essential to divide the load of the DeFi sector.

The online gambling industry is another area heavily disrupted by DeFi and NFTs which have helped the industry monetize further while providing a new source of income for gamers who spend a lot of time gambling online.

Given the influx of DeFi into various industries, governance tokens will gain in popularity, giving the DeFi community more stakes and votes in the governance of the platform.

The rise of DeFi platforms has spurred another concept in Indian crypto circles: stablecoins. More and more Indians are flocking to the stable coin market, with Tether USDT reigning on the scene. According to a recent report, Tether is the second most traded crypto after Bitcoin.

It should be mentioned here that most DeFi companies have partnered with Indian cooperatives to offer peer-to-peer services and are planning to open more branches and even ATMs. In short, DeFi is preparing to democratize finance in 2022.

The future Web3 economy

The designer economy will see incredible innovation in the Web3 iteration that could explode as a ‘new renaissance of entrepreneurship’ in 2022 itself. Web3 startups focused on cryptocurrencies, NFTs, DeFi, and more are expected to gain momentum, with VCs finding long-term value in these startups as the engines of the web’s next iteration despite the regulatory uncertainty. Early stage venture capital firms like Antler India are committing to invest and deploy $ 100-150 million in over 100 Indian startups over the next three years. The online domain we call the Metaverse (which Bill Gates says will be the location of our business meetings in a few years!), DeFi and NFTs will be co-authoring the next web edition on the Web3 platforms.

The popularity of NFT is gaining momentum

Let’s discuss how popular NFTs became in 2021 after the Beeple art sale was sold in March. NFTs appear to have crashed in all sectors that could potentially be tokenized. The NFT craze is intensifying and would arguably reveal the best in 2022 beyond collectibles, artwork and in-game sports memorabilia, and would increase by over 1,000% in 2022 alone, according to a Forbes prediction!

Notably, the maximum attention to NFTs will come from athletes, artists and celebrities, in addition to collectibles in games and sports. The recent sale of the Amitabh Bachchan NFT collection brought in almost $ 1 million. Gone are the days when we carried home sports and celebrity NFTs instead of physical memorabilia.

Metaverse boom

Facebook’s decision to rebrand itself as ‘Meta’ and global tech giants including Microsoft, Snap, Nvidia, Tencent, etc., supporting the Metaverse hype, could see 2022 writing a new chapter. from the history of the Metaverse. Blockchain-covered AR / VR is already providing an immersive experience for Metaverse audiences.

While Nvidia is set to launch its AR / VR headsets, Flam, an India-based social media startup, is developing a social networking mobile app for a Metaverse-like AR experience without the AR / VR gears. The discussion cannot be complete without mentioning Shiba Inu’s initiatives to integrate the metaverse and NFTs into their game business, Shiba Games. The developers have many plans underway to find more use cases for the dog token by incorporating growing industrial niches within the Shiba ecosystem.

Cryptography regulations: work in progress

Speaking of 2021, we’ve made commendable progress on the regulatory front, and 2022 may bring more clarity on this issue. Widespread rumors of a crypto ban in January to the Minister of Finance remarking on the “need for a calibrated approach to tackle crypto” earlier this year, to the public consultation by the Standing Committee of Parliament, and Finally, with the Prime Minister calling for crypto regulation in November, the possibility of an impending ban could be ruled out.

The bill, in all likelihood, could fail yet again in the winter session of Parliament (the winter session ended without the cryptocurrency bill being tabled). It just means that we are a booming nation when it comes to regulations. We have already encountered several clues and hypotheses, such as these:

The government could allow a limited number of exchanges, which explains the consolidations that India’s crypto exchanges seek to undergo.

Stock exchanges could be invited to designate a grievance officer to provide a local point of contact, on the model of the computer rules of social networks.

Indian stock exchanges already apply self-regulatory codes of conduct under the IAMAI-BACC initiative. Progressive crypto regulations can help India spearhead the crypto revolution (just like the IT boom). The crypto community is doing a great job of promoting crypto education among the masses.

You can call 2021 the giant leap of faith for the crypto industry, and surely it was. But in 2022, we’ll have more fun as this leap continues with great strides and moves towards building a better world powered by blockchain and cryptos. Exciting moments!

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