Jump Capital Claims that 2022 is Going to be Another Big Year for CryptocurrenciesFebruary 19, 2022
Jump Capital recently shared a detailed review of the development and progress happening in the cryptocurrency markets. The financial firm pointed out three main points that are going to make the digital asset market bigger than ever before in 2022. One of the economic reasons that cryptocurrencies are getting so much attention from investors is the rising inflation.
According to Jump Capital, this year, Bitcoin managed to recover from the 50% hashrate fall within a few months and recorded ATHs twice. While, at the moment, the token is once again inching toward the bear market, it seems that 2022 is going to be another great year for digital asset investors once again. Jump Capital noted that Layer2 solutions, NFTs, DeFi, dApps, smart contracts, and DAOs are going to make big changes.
Ethereum is the most popular DeFi market for developers. However, its popularity has also created the issue of high inflation costs for the network. Meanwhile, the number of layer-2 solutions like Avalanche, Solana, Terra, and Polygon has started to gain traction among investors.
These layer-2 solutions are not only allowing the investors to find alternative blockchains with lesser transaction fees and higher speed but also add more credibility to the network. These projects have added more functionality to the Ethereum network like scalability, cross-chain transactions, and p2p channels that are ultimately complementing the value of Ethereum until PoS implementation.
Jump Capital report also suggested that the top stablecoin projects have increased to the market value of $140 billion in the current year. The financial analyst added that 2022 might be a big year for stablecoins. A new utility for stablecoins is cross-border payments that can see getting more traction among investors in 2022.
Meanwhile, there is also some debate about the use cases for DAOs or Decentralized Autonomous Organizations. The developers are interested in establishing new payment pathways globally with the technology. The DAO setup allows the payment channels to operate without the need for a centralized moderator or supervisory authority.