The cryptocurrency market appears to be getting pulled in a few different directions at the moment, with new technology being introduced that will undoubtedly shake up the industry.
Bitcoin is still setting the benchmark and acting as the digital gold, but there are newer solutions to online transactions that could challenge Satoshi Nakamoto’s coin’s dominance in the future. NFTs and the rise of Metaverse-related coins are trends to keep an eye on.
Bitcoin Still Leading the Way
The cryptocurrency market is wide open and because digital currencies haven’t yet become a ubiquitous form of payment, the race to become the number one option is still on. Currently, though, it is hard to imagine any other cryptocurrency knocking Bitcoin off its perch. The original digital coin has a market cap of more than $1 trillion in 2021, representing almost half of the market cap for all digital currencies, which stands at $2.3 trillion.
Along with having the highest value of all cryptocurrencies, Bitcoin is the most prevalent in the mainstream. Its usage has gradually crept into various industries, with many major companies taking it up. It’s particularly widespread in sectors where there’s a lot of competition and companies need to offer diverse payment options to attract users.
Microsoft introduced Bitcoin payments for its Xbox store to get the edge on PlayStation, for example. It’s also beginning to be used in a more widespread context across casinos online. Judging by the list of top sites in the USA, compiled based on the quality of their player ratings, website features and promotional offers, it’s clear that one of the methods they use to attract players is the diversity of payment options alongside lucrative bonuses.
Bitcoin has had an incredible year in 2021. Just before the turn of the year, one bitcoin was valued at around $20,000. It has pushed above $60,000 on two occasions since then and, while it has fluctuated slightly, it seems unlikely to dip below $40,000 again. Bitcoin has shocked the masses for the umpteenth time, and it’s exciting to think how it will surprise people in 2022.
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Rise of NFTs
NFTs have been in the news a lot lately, with Grimes famously making $6 million from selling digital artwork this year. An NFT is a non-fungible token, meaning that it is unique and can’t be replaced by anything else. Examples of things that could be classed as NFTs are pieces of original artwork, trading cards, and music tracks. These NFTs are traded on the Ethereum blockchain, which is one of the first blockchains to offer this different type of code as an option to its users.
Some people have speculated that NFTs could represent the new way to collect art, with experts able to bid for pieces over an auction. Others conjecture that it could be a fad that disappears within a couple of years. Either way, it’s worth keeping an eye on them. Investors would be wise to diversify their portfolios to include small speculative shares in NFTs in case they surge in 2022.
The Boom of Metaverse Coins
The recent announcement of the Metaverse is likely to shake up the cryptocurrency markets. Part of the allure of digital currency is the fact that it can be used universally, negating the need for individual fiat currencies. This will be of utmost importance in the Metaverse, which will exist without borders.
Since the announcement of Facebook’s name change and its VR world, there has been a huge spike in interest in coins related to it. This is because Mark Zuckerberg has stated that he wants crypto to exist within the Metaverse and that the Novi wallet will be integrated into the VR world.
The main Metaverse-themed cryptocurrencies at the time of writing are The Sandbox, Decentraland, and Enjin Coin. SAND tokens have risen by more than 600 per cent over the last month.
Facebook has already tried and failed to develop its own Libra coin, but analysts are expecting the social media giant to re-enter the race with a new offering. The company is currently testing Pax dollars, and it’s something for crypto enthusiasts to monitor.
2021 has been one of the biggest years to date for the evolution of cryptocurrencies. The success that they have enjoyed this year should act as a springboard for them to push on in 2022.
