Arcane Analysis, a blockchain data research business, examined the year in its final report for 2021 and made forecasts for crypto markets in 2022.
The Weekly Update report from Arcane on December 28 concentrates on Bitcoin (BTC) and Ethereum (ETH), but it also includes information on other important coins, decentralised finance (DeFi), meme coins, nonfungible tokens (NFT), derivatives, and other topics. In every area discussed in the research, Arcane predicted what would happen in 2022.
In 2022, Bitcoin expected to outperform the S&P 500
Bitcoin has outpaced the S&P 500 index through 2021, according to the analysis. This year, Bitcoin has increased by 73% while the S&P 500 has increased by 28%, and Arcane expects Bitcoin will continue to grow next year. The 500 largest firms listed on American stock markets make up the S&P 500 index, which serves as a benchmark.
XRP and Cardano will drop out of the top ten cryptos
Binance Coin (BNB) has had significant increases this year, peaking at above 1600% in May and finishing the year up 1344%, according to Arcane. Analysts believe Ripple (XRP) and Cardano (ADA) will quit the top-10 list as a result of this, as well as the surge in market cap from alts like Solana and Terra, as well as the NFT mania.
Alternate layer-ones will keep on outperforming ETH
While ETH outscored BTC by 455% to 73% this year, other layer-one blockchains outpaced it. Layer-one blockchains are those that are not connected to any other blockchains. Terra Luna is up 14,823% in 2021, while Fantom is up 13,549%.
NFTs will become more prevalent in traditional gaming companies
According to DappRadar, blockchain games like Splinterlands and Alien Worlds have roughly 526,000 daily active players. Indicating that this year in crypto has been defined in large part by significant NFT sales. Traditional gaming businesses will extend out into the NFT space in 2022, according to Arcane. In order to take advantage of the growing market.
More crypto companies will go public, with several having valuations exceeding $5 billion
Coinbase went public on April 14th of this year, with a market capitalization of $72 billion. The five largest cryptocurrency companies set to go public in 2022 are all worth more than $1 billion at the moment. Arcane believes that a number of others, such as crypto exchange Bullish, which is presently valued at $9 billion, will be worth more than $5 billion.
By the end of 2022, Bitcoin ETFs will contain more than 1 million BTC
In the year 2021, a number of Bitcoin futures exchange-traded funds (ETFs) were released. They presently own a total of 846,309 BTC, with Arcane predicting that this number would rise even further in 2022.
Hashrate will become more widely dispersed across the globe
When China outlawed Bitcoin mining, the global hashrate dropped dramatically, only to recover almost as quickly. The United States currently leads the world in hashrate, with Kazakhstan and Russia following closely after. Miners, according to Arcane, will disperse even further into Latin American locations.