The blockchain hype is no more mired with hints of uncertainty and doubt. Cryptocurrencies have become common terms in tech terminology, while NFTs and DeFi are changing the conventional perceptions of asset ownership and finance. Almost everyone interested in technology wants to explore the top blockchain trends to learn more about advancements in blockchain and crypto.
The global blockchain technology market had an overall valuation of $1.57 billion in 2018, and the figure reached $6.92 billion in 2021. Now, estimates suggest that the worldwide blockchain market can grow up to $163 billion by 2027. The massive potential associated with the blockchain market is one of the obvious reasons for exploring emerging trends in the field. The following discussion helps you learn about the prominent blockchain trends which will dominate 2022.
Why the Hype for Blockchain?
The question might be a bit obsolete, especially considering the fact that blockchain technology is beyond the hype phase. Now, people are trying to learn more about the technology and how it can help in transforming many legacy systems. Most important of all, new blockchain technologies have changed the conventional perceptions about applications of blockchain only in cryptocurrencies.
Blockchain has many promising use cases for different industries and offers many conclusive advantages such as decentralization, encryption, and censorship resistance. Companies have been exploring new use cases with the latest advances in blockchain technology, such as new classes of assets and stronger encryption mechanisms. The trends in the blockchain industry are more important than ever for enterprise owners today, especially considering the way blockchain is expanding across various sectors.
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Blockchain Trends You Should Watch Out For in 2022
The world has not discovered the full potential of blockchain technology as of now. As the use cases of blockchain technology in different industries start gaining considerable momentum, you should look out for top blockchain trends every year. Why? Blockchain is still a new technology and has massive potential, thereby becoming an instant candidate for scrutiny.
The implications of new advancements in blockchain technology can spell out the roadmap for the future of the organization. On top of it, the overview of blockchain trends in 2022 can help you define strategic priorities for organizations interested in blockchain. You can also learn more about the latest improvements in complementary aspects of the blockchain industry, such as regulations. Here are some of the top trends in the blockchain industry you could come across in 2022.
1. Increased Investments in Blockchain
If there’s one thing you can be sure about the blockchain industry, it is the facility of various value advantages to enterprises. The beginnings of the blockchain industry from cryptocurrencies have spelled the perfect foundation for its popularity. However, the biggest blockchains, such as Ethereum, have shown that blockchain can be more than cryptocurrencies. One of the most emphasized aspects of blockchain technology in recent times points to the versatility of applications. You can implement blockchain for creating a decentralized finance application as well as supply chain tracking applications.
Therefore, the blockchain trends in 2022 would focus largely on a continuous flow of investments into blockchain-based applications. The obvious candidate for increased adoption of blockchain technology in the financial sector. Estimates have suggested that the applications of blockchain technology in finance would amount to almost $22.5 billion by the year 2026. In addition, the investments in blockchain technology would also flow from other sectors such as healthcare. Reports suggest that expenses on blockchain-based healthcare solutions will reach almost $5.6 billion by the year 2025.
On top of it, blockchain does not focus on appealing to the interests of enterprises only. As a matter of fact, developers are trying to capitalize on the business value of blockchain. The top blockchain trends for this year would also draw attention to the interest of nation-states in blockchain funding. Most notably, the European Union has announced plans for a multibillion-euro investment in blockchain technologies.
2. NFTs and Metaverse
The next prominent highlight of the latest advances in blockchain technology would draw attention to metaverse and NFTs. Non-fungible tokens, or NFTs, emerged as a top technology trend in 2021 and established proof of their potential. You can expect the market for NFTs to grow further beyond the barriers of online art.
Developers are working on new NFT-based projects with an increased focus on utility, which can drive the adoption of NFTs. How will NFTs make the shift towards utility? Interestingly, two important factors can serve as formidable drivers for the shift towards utility. What would drive the utility of NFTs as one of the prominent blockchain trends right now?
The first thing which can boost the element of utility in non-fungible tokens refers the growing use of the metaverse. You must notice how metaverse presents some new perspectives on ownership of digital assets. In addition, it also opens up the world to new and immersive methods for sharing and enjoying virtual 3D experiences. The growth of the metaverse would open up the doors for the adoption of new NFTs, including cosmetic items, digital passes, virtual properties, and many other factors.
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3. Ethereum and Layer 2 Solutions
Ethereum is undoubtedly one of the biggest blockchains you can find today. The blockchain network created in 2015 has soared to humongous levels of popularity in a short period of time. One of the primary highlights of the success of Ethereum reflects the facility of programmable smart contracts. The efforts for scaling Ethereum will continue in 2022 as it has become a playground for DeFi applications and NFTs. Almost anyone interested in creating a decentralized application would think of Ethereum as their first choice.
However, the popularity of Ethereum actually turned out to be a huge setback for the network. How? As a matter of fact, Ethereum emerging as a top platform for dApps development served as one of the biggest blockchain trends in the past years. The trending phenomenon invited everyone to Ethereum to build decentralized applications, ultimately congesting the network.
The network congestion resulted in higher transaction fees and longer waiting times for developers. Therefore, Ethereum would continue experimenting with efforts to increase scalability throughout 2022. For example, the Polygon network, alongside experiments with layer 2 technologies, would stand strong as the top blockchain trends in the coming years.
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4. Evolution of DeFi
The advances in blockchain technology and crypto have caught the whole world’s attention, unlike never before. One of the most notable advancements in 2021 pointed at the growth of DeFi space, with many new solution providers entering the field. New platforms with better technology and scalability have been defining the revised perceptions of efficiency in financial services. Interestingly, a new wave of assumptions about a DeFi 2.0 with new products has been making some noise for quite some time. The trend may continue forward in 2022, with technology improvements offering a vital boost to the evolution of DeFi.
Developers can set the foundations for new blockchain trends in 2022 with new products alongside improved liquidity models. In addition, the DeFi sector can open up to the broader economy by the expansion of DeFi products on blockchain networks beyond Ethereum. For example, Pancakeswap integration with Binance Smart Chain showed that DeFi could also exist on other blockchain networks.
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5. Regulatory Uncertainties
Blockchain applications have been introducing many critical shifts across various sectors. The new blockchain technologies have been responsible for creating many economic changes. As of now, there is no significant and solid framework of regulations for governing blockchain and crypto. The US Securities and Exchange Commission plans on introducing clearly defined regulations for monitoring the crypto industry in 2022.
Regulatory uncertainty is still one of the biggest troubles for mainstream adoption of blockchain. As a matter of fact, many interested investors move away from blockchain and crypto due to the element of regulatory uncertainty. At the same time, blockchain entrepreneurs also experience many prominent issues with the regulatory uncertainty in the blockchain.
One of the latest highlights of the latest blockchain trends refers to the shift of blockchain from a startup-level technology to enterprise technology. As many enterprises are excited to adopt blockchain technology in their systems and processes, they want to figure out the regulatory implications of their choices.
Now, the notion of developing first and worrying about the regulations later cannot serve any reasonable purpose. Even if enterprises and developers are ready to take risks, a straight set of regulations can help in streamlining operations. At the same time, regulatory certainty helps in optimizing the end-user experience alongside resolving the hassles for enterprises.
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The list of top blockchain trends you should look out for in 2022 showcases a favorable year for the blockchain space. Enterprises in different sectors, such as healthcare and supply chain management, are working on new ways to leverage blockchain technology. At the same time, DeFi, NFTs, and Metaverse, which made a mark as top tech trends in 2021, will also influence the future of blockchain. However, the long-term improvements in the blockchain would depend largely on the primary benefits of decentralization, transparency, and encryption. Start learning more about other top trends in the world of blockchain you must know right now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!