The cryptocurrency market in 2022: Part 2

In the first part of the article, we presented the results of the outgoing year and the general forecast for 2022. In the second part, we will analyze the opinions of market experts. Some analysts and experts have already shared their vision of the future situation.

The bonus at the end is a forecast for three promising cryptocurrencies for 2022.

The first and second quarters of 2022 will be decisive

The Block's vice president, Larry Cermak, is optimistic. The enthusiast believes that Defi solutions of the second level will find themselves on the second wave of popularity, and there are no prerequisites for a decrease in demand for cryptocurrency assets.

The NFT market will change globally. You should not expect the previous wave, and a new approach to the market will not keep you waiting. Niche metrics for Q3 2021 are shown below:

Non-fungible token market statistics according to Bloomchain

Crypterium representative Vladimir Gorbunov assumes a positive course of events in the first quarter due to the investment interest of new participants and the emergence of worthwhile projects. After that, a protracted correction is possible, and Bitcoin has a chance to grow to $500,000 in the long term.

Fei Wu, a representative of the AscendEx cryptocurrency platform, also admits a rise in the price of BTC to record values, up to $100,000. If this happens, it will most likely happen in February-March 2022.

Finally, LotTrade co-founder Leonid Litvinenko expects the cryptocurrency to grow amid the ongoing coronavirus pandemic and an influx of investors.

Restraint in forecasting

Some people are in no hurry with conclusions and statements about the rapid growth of the exchange rate. Maria Stankevich, one of the EXMO representatives, has the following opinion:

"Cryptocurrencies have outperformed some other assets like oil or small stocks, but the SEC's decision to ban Bitcoin or USDT could have a significant impact on the exchange rate. Fundamentally, the tool has potential, which is confirmed by analytics. I don't make predictions for $100,000 or $250,000"

Nikita Soshnikov, director of the Alfacash exchange service, has a similar position. The growth in the share of long-term investors, noted in the last 12 months, will not allow the market to explode in the next quarter. He believes that the lack of incentives makes a rise in price to $200,000 in 2022 unlikely. Such a price is possible in mid-2023.

In August 2020, the number of holders exceeded the October 2020 maximum. The total amount in the wallets of long-term holders was more than 14.6 million BTC.

Long-term retention statistics according to Glassnode

Capitalization changes

According to Bloomchain, the total capitalization of the cryptocurrency market in the third quarter of 2021 amounted to $1.9 trillion, an increase of 46%. This indicator could rise in the coming months: Rohit Talvar, CEO of Fast Future Analytical Company, takes this point of view. In an optimistic scenario, the maximum value has a chance to increase to more than $7 trillion.

TOP 3 promising altcoins

According to Equite, three alternative cryptocurrencies have a chance of significant growth in 2022.

Ethereum

The alleged merger of the main network of Ether and Ethereum 2.0 in 2022 could be a boost for cryptocurrency. Because of this factor, Gold-i CEO Tom Higgins is confident that ETH can overtake BTC precisely because of this.

We should take into account the positive dynamics of currency capitalization over the past three months:

Ethereum market capitalization growth in the third quarter of 2021

Polkadot

DOT's progress is based on the technical capabilities of the project. It offers users opportunities that are not present in the Ethereum architecture, changes the approach to cryptocurrency development, and introduces new tools that have never been used before.

The price change since the beginning of this year was 247%. A year ago, the asset was worth about $8. At the end of December 2021, the token is already on sale at $29 per coin.

Important updates are planned for 2022, which will fuel interest in the platform and increase the coin's liquidity.

Polygon

The MATIC token is a side chain second level compatible with Ethereum. According to one expert, this technology will take the lead.Hints of this are being noted now: The total market capitalization at the end of December was $19,086,919,626.17 (14 billion at the beginning of the month). The price is increasing.

The Proof-of-Stake consensus algorithm and the Plasma framework are at the core. The combination of technologies solves the scalability problem, including in the case of smart contracts. The network bandwidth is up to 65,000 transactions per second on one side chain.

Despite the fact that the system was launched in 2017, interest in it is only activating now against the background of the need for progressive DeFi solutions. If the market situation is favorable, the token may rise in value.

Conclusion

Even taking into account drawdowns, corrections, and adverse situations, we can confidently call 2021 a breakthrough year for cryptocurrencies. We have every reason to believe that this is a long-term trend, and in 2022 the industry will continue to develop. This applies not only to investment tools, but also to the field of development, progressive solutions, and new technologies.