Bitcoin grew by a colossal 72% last year. Becoming the top alternative means of payment globally, crypto gave a boost to the development and expansion of blockchain technology. We have looked through an in-depth analysis of the crypto trends in KuCoin Labs’ Annual Report 2021 and compiled the top six trends in crypto development and promotion for the year ahead.
Twitter Wars
Cryptocurrencies are very volatile, that is, they are highly liable to a decline and an increase in the exchange rate. At the same time, they provide an impressive plow-back. Memecoins like Dogecoin and Shiba Inu have become an astonishing revelation for investors. Twitter wars contributed to their quick adoption and revealed this interesting tool to the top cryptocurrencies globally. If you haven’t yet followed cryptocurrency influencers on Twitter, now it’s time to unveil these trends. We all know how a single tweet from Musk may affect the crypto market.
Emphasis on Compatibility
One of the top trends in crypto development is the compatibility of various platforms or cross-chain. Developers are aware that they must provide owners of cryptocurrency wallets with the option to interact with various cryptocurrencies within one convenient space. We will likely reap the benefit of blockchain cross-platform solutions soon. Experts are confident that crypto market majors will soon announce such releases.
Majors Development & New Blood
Last year, Ethereum released a large update in London. There has also been a significant expansion of Layer-½. These events made it clear that many more updates in the cryptocurrency space are yet to come. Many companies are competing for the top spot in the blockchain and Avalanche is among them. BSC and Solana are also racing, although the majors won’t yet retreat.
Platform improvement for the end-user has become the bottom line in the crypto space. There’s also a transaction processing fee price-cutting at the top of the agenda which will attract even more investors. KuCoin Lab experts claim that cryptocurrency companies’ development trend will retain this year and a year ahead.
According to acknowledged experts, new power-packed players will enter the market in 2022-2023. It is still unclear whether Ethereum and Bitcoin will face worthy competitors though.
Crypto Fraud Blooms
In 2021, a wave of crypto fraud swept through the net. DeFi was most notable. It is worth reminding that last year hackers managed to steal about $610M from a particular cryptocurrency account. The total financial damage due to blockchain exposure is estimated at billions of US dollars.
Blockchain reliability is its weak point to this day. All cybersecurity current efforts are focused on hardening security systems and combating the growing number of cyber-attacks and hacking. Corporate giants plan to develop in-house verification models in 2022 and provide users and investors with powerful security safeguards for their assets.
Merging of NFT & DeFi
The onrush of NFT has populated the infosphere in the preceding year. As the Metaverse concept is gaining momentum, it becomes essential for such platforms to merge with gaming and DeFi. The intention is to create an integrated ecosystem that significantly expands users’ options and provides them access to trading and digital assets. These days, platforms work on user identification improvement and provide a solid foundation for future integrations.
So far, slow DeFi development is in evidence. Today, regulatory authorities around the world are engaged in the cryptocurrency platforms’ policy setting so that they can control it. The token boom and the emergence of new protocols contribute to Web 3.0 development. Will DeFi be taken over? It is unclear yet. However, experts claim that developers will at least make the platform more attractive and user-friendly.
Steady Development of the DAO
It is unlikely that we will evidence a DAO boom in 2022. KuCoin Lab specialists expect that DAO operating principles will be seamlessly updated. In this case, developers blaze the trail for the future corporate implementation of the platform. DAO’s operational concept is very reliable and claims to be the foundation for the cryptocurrency’s development to a great extent. So far, the DAO seeks to become the linchpin in the blockchain space. Their protocols implement an effective cryptocurrency turnover management model.
Summary
The growing popularity of NFT and DAO projects, research and enhancement of Metaverse, the Twitter wars, the merging of platforms, and the compatibility enhancement are the zeitgeist of the cryptocurrency landscape this year. Experts underline that governments make policies to apply limitations and control crypto operations. Hacking and fraudulent schemes are blooming. So, you might want to work with proven offers from reliable partner networks only.
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