Arcane Research, the blockchain data research firm, has taken a look at the year reported in its 2021 final report and has offered its predictions for the cryptocurrency markets for 2022.
The report Tuesday’s Arcane “The Weekly Update” focuses on Bitcoin (BTC) and Ether (ETH), but delves into other major currencies, decentralized finance (DeFi), memecoins, non-fungible tokens (NFT, for its acronym in English), derivatives and others. Arcane offered a predicting what will happen in 2022 with each topic covered in the report.
“Bitcoin will overtake the S&P 500 in 2022”
The report noted that Through 2021, Bitcoin has outperformed the S&P 500 Index. Bitcoin is up 73%, while the S&P 500 is up 28% this year, Y Arcane estimates that Bitcoin will continue this performance next year. The S&P 500 benchmark index encompasses the 500 largest companies listed on US exchanges.
“XRP and Cardano will come out of the top 10”
Arcane noted the big gains from Binance Coin (BNB) this year, peaking at around 1,600% in May and ending the year with a 1,344% rise. Based on this and the market capitalization growth of altcoins such as Solana (SOL) and Terra (LUNA), along with the NFT craze, analysts are considering that XRP and Cardano (ADA) will drop out of the top 10 list.
Some layer one coins will continue to outperform ETH
While ETH outperformed BTC this year with a 455% gain versus 73%, other Layer one blockchains outperformed ETH. Layer one refers to autonomous, base-layer blockchains. Terra Luna ended the year 2021 with a rise of 14.823%; Fantom is up 13.549%.
Traditional gaming companies will increasingly add NFT
This year in the crypto arena can be largely defined by NFT’s massive sales, Y blockchain games like Splinterlands and Alien Worlds have around 526,000 daily active users, according to DappRadar. Arcane predicts that in 2022, traditional gaming brands will enter the NFT space and capitalize on the burgeoning market..
Even more cryptocurrency companies will go public, and several will have valuations above $ 5 billion.
This year, Coinbase went public on April 14, and it currently has a market capitalization of $ 72 billion.. The top five cryptocurrency-related company IPOs planned for 2022 are currently valued at more than $ 1 billion. Arcane believes that there will be others valued above 5,000 million dollarssuch as cryptocurrency exchange Bullish, which is currently valued at $ 9 billion.
Bitcoin ETFs will have over 1 million BTC by the end of 2022
Several Bitcoin futures exchange-traded funds (ETFs) launched in 2021. They currently hold about 846,309 BTC together., and Arcane said growth will only continue in 2022.
“The hashrate will be distributed even more geographically”
When China Banned Bitcoin Mining, Bitcoin’s Global Hash Rate Dropped Sharply, and then recovered almost as quickly. Now the United States leads the world in hashrate, followed by Kazakhstan and Russia. Arcane estimates that miners will spread further into regions like Latin America.
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