Arcane Research, a blockchain data research firm, has looked at 2021 in its last report and made its predictions for the future of crypto markets.
Arcane’s Dec. 28, The Weekly Update report focuses primarily on Bitcoin (ETH) and Ethereum (BTC), but also explores other major coins, Decentralized Finance (DeFi), Meme Coins, Nonfungible Tokens (NFT), derivatives and many others. Arcane provided a prediction of what would happen in 2022 for each topic in the report.
“Bitcoin will surpass the S&P 500 by 2022.”
According to the report, Bitcoin outperformed S&P 500 through 2021. Bitcoin has risen 73%, while the S&P 500 has risen 28%. Arcane believes that Bitcoin will continue to outperform the S&P 500 index next year. The 500 largest companies that are listed on American stock exchanges make up the benchmark S&P 500 Index.
“XRP, Cardano and other top-10 currencies will be eliminated”
Arcane noticed the huge gains in Binance Coin (BNB), which topped at around 1600% in May, and rounded out the year with 1344%. This, combined with the increase in market capital from alts such as Terra and Solana, and the NFT craze, analysts predict that Ripple (XRP), and Cardano, (ADA) will be the last 10 top-ranked coins.
ETH will continue outperforming lternate layers-ones.
ETH was outperformed by BTC with a gain between 455% and 73% this year, but other layer-one cryptos outperformed ETH. Layer-one is a standalone, base layer blockchain. Terra Luna ends 2021 with an increase of 14,823%. Fantom is up by 13,549%.
Traditional gaming companies will add NFTs more frequently
The massive sales of NFTs has made this year in crypto a memorable one. According to DappRadar, blockchain games such as Splinterlands or Alien Worlds have approximately 526,000 daily active users. Arcane predicts traditional gaming brands will expand into NFT space in 2022 to capitalize on the growing market.
More crypto companies will be listed and many will have valuations exceeding $5B.
Coinbase went public this year on April 14th. It currently has a market capital of $72 billion. Five of the largest crypto companies that are scheduled to list publicly in 2022 are valued at more than $1 billion. Arcane believes that there will be many other crypto companies valued above $5 billion, such as Crypto Exchange Bullish, currently valued at $9 Billion.
Bitcoin ETFs will have more than 1M BTC at the end of 2022
In 2021, several Bitcoin futures exchange traded funds (ETF) were created. Together, they currently hold 846,309 BTC. Arcane claims that the growth will continue into 2022.
Similar: Ethereum whales dump ETH when price falls below $4K, data indicates
“Hashrate will be more geographically distributed”
The global Bitcoin hashrate plummeted after China banned Bitcoin mining. It then almost recovered as quickly. The United States is now the leader in global hashrate, closely followed by Russia and Kazakhstan. Arcane is convinced that miners will spread further into Latin America.
Eileen Wilson –Technology and Energy
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