Predictions for Blockchain, Crypto Assets, DeFi and NFTs

With cryptocurrency, blockchain technology, and questions like what is DeFi making headlines in the past couple of years, it is no wonder that worldwide adaptation of these protocols.

Crypto assets are reaching an all-time high of $3 trillion, DeFi is amassing a TVL (total value locked) of $100 billion, and NFTs and the Metaverse have blindsided everyone with their emergence,

No one could have foretold these developments as predicting the future is complex and uncertain. However, we hazard making the following predictions, and we’re enthusiastic to see if any of them come true.

Here are a few of our predictions for Blockchain, Crypto Assets, DeFi, and NFTs

🪙Ethereum gets upgraded and becomes dominant.

Developers have scheduled Ethereum to completely transition from the proof-of-work consensus mechanism to the proof-of-stake over the following 12 months, thus increasing the likelihood of financial organizations from the traditional finance sector entering the staking business.  

Rewards from stakes could become a type of “prime rate” of the cryptocurrency market, as investing in the crypto world in a hazard-free manner other than through staking ETH is rare. 

Users have two options: either set up a personal staking infrastructure or depend on platforms like Coinbase and others for their staking services.

As Ethereum prevails as the dominant blockchain platform, we can anticipate continued improvements in the future, with several businesses establishing their apps by utilizing Ethereum.

🪙NFTs and blockchain gaming will become significant revenue-generating sources. 

Although NFTs (Non-fungible tokens) are still in a premature phase, we can anticipate an impressive increase in their popularity and use cases.

NFTs will see more adaptations from applications, collectibles, individuals, and games. 

As a virtual platform used to trade and collaborate economically, the Metaverse and other virtual economies are difficult to visualize without blockchain-based infrastructure and NFTs.

With corporate tech giants Facebook and Microsoft announcing the setup of their unique approaches to virtual worlds, “metaverses,” one could presume that they will create a centralized system that will make the transfers of value to different ecosystems tricky or downright impossible. 

Once the transfer of value is seamless and consistent across several crypto universes, the adoption of blockchain-based gaming and NFTs could receive additional growth. Although this seems far-fetched now, we predict this will quickly become our new reality. 

🪙 Stablecoins will start to gain attention

The volatile nature of Bitcoin and other cryptocurrencies has grabbed headlines on several occasions because one can make or lose all their investment at the speed of the internet. When using cryptocurrencies in real-world situations, their volatile nature can quickly confuse things; this is where stablecoins come In.

Stablecoins could play a crucial role in making cryptocurrency a mainstream transactional method. One of the core values of a stable coin is its ability to transfer assets efficiently. This value is significant to companies that need to efficiently and quickly move cash and virtual assets.

🪙 More extensive hacks and larger ransoms  

In 2021 cryptocurrencies were used to facilitate millions of Dollars for ransom payments; this is because one of the features that make virtual currencies attractive to criminals is that they are hard to track.

 it is next to impossible to unwind and track a payment once it has gone through

In the coming months, we should anticipate cryptocurrency and its services used by criminals to obtain illicit funds by assuming it offers them anonymity, 

The same reasons that bitcoin and other cryptocurrencies are peeling to legitimate investors is the same reason it is also appealing to criminals; the fact that it is instantaneous, easy to use, and cross-border.

The stability that stablecoins offer would be a significant factor in its adaptation as a means of payment.

🪙 Large-scale adoption of cryptocurrency by giant corporations, institutions, and investors

Over the past year, interest in virtual assets has been made known by everyone from McDonald’s executives to large companies and corporate investors and asset managers making financial moves that could impact how we utilize virtual money.

Whenever cryptocurrency makes the headlines, it is usually about Tesla CEO Elon Musk’s tweets, the expensive ways he spends his billions, or the hacks. However, the more significant changes are often less attention-grabbing and flashy than the crypto propaganda on Twitter.

Even Major Banks such as Goldman Sachs and JP Morgan have started developing a range of offerings surrounding crypto investments.

Regarding the adoption of large companies, Mark Zuckerberg’s ‘Meta’ even takes it a step further by asserting itself as one of the future significant parties of the Metaverse.

We predict that cryptocurrency will see more value and focus on utility in the coming months.

🪙More transparency on regulations

As the cryptocurrency industry flourishes and grows, we should anticipate several more regulated exchanges increasingly strongly regulated by financial institutions and governments.

Various countries must make a statement regarding how they plan to handle their crypto assets. Either by tightening restrictions and introducing bans like China did or following the friendly approach of El Salvador and adopting bitcoin as an official currency alongside their native Fiat currency.

We also predict regulators will focus on taxes, KYC, AML, and stable coins while investigating the viability of DeFi regulations in exchanges with regulators from other jurisdictions.

We expect Decentralized finance protocols such as Ethereum and Bitcoin to be condoned, proven that they abide by specific rules such as identifying transactional partners, paying taxes, and money laundering prevention. 

Final thoughts

These are some of the growths and changes we predict might happen in the coming year. None of the predictions listed in the article constitutes financial advice; make sure you do your research, seek investment advice, and consider your financial status before making any financial investment decisions.