A new year brings hopes of wellness, happiness, and wealth as all traditions the positive vibes are all over January until it all calms down. Here at Atlantic Defi we want to keep a biased feel for crypto, and we would like to stay calm, avoid all the noise and prepare you for the best strategy in 2022. These are some things that we believe will happen over the year.
Bitcoin will become less volatile.
As Bitcoin becomes more mainstream, both sophisticated and value investors flock in packs to grab a piece of the 21 million pie using it as a hedge against inflation. Because of this, the price of Bitcoin will become less volatile. We expect prices to fluctuate but don’t expect a 50-75 percent drop as in previous years. The correlation between bitcoin and the stock market is tighter than ever, and unless we see massive drops on wall street, the price of Bitcoin will probably go up. Some speculators believe it will go as high as 100k, but we think it will go as high as 75-80k.
More Dapps going to Polygon instead of Ethereum
With gas fees soaring and ETH 2.0 being just a promise to lower costs and faster transactions. More developers are now leaving to other blockchains such as Solana, Avalanche, and Famton, searching for more secured, faster transactions and lower costs. The only chain that has all of that and is proving to be a viable alternative to Ethereum is Polygon. Quickswap, Polygon native DEX, is the second most used exchange in DeFi behind Uniswap that just started using the protocol. We expect more dapps to be instead of Ethereum. The price impact on their native token Matic is already beginning to show, and it looks like it has further potential to grow.
Most of your NFT’s will be worthless.
NFT’s are here to stay, but the reality is that 2021 there was a lot of hype. From the BAYC, Cryptopunks, Cool Cats, etc. But lately, we see thousands of Clones and celebrity-endorsed non-fungible tokens with no value at all. So expect lots of these NFT’s projects to die, or some may be pivoting to a more value-added proposition such as gaming and metaverse experiences. Defi Kingdoms on Harmony is an excellent example of how DEFI and NFT can be a way to earn rewards and have valuable virtual assets.
The Multichain is coming.
If you want to get the best yield or interest rate, it’s probably on Ethereum or a layer two solution such as Polygon. But imagine a world in that the protocol does not matter and you can transfer any token and get the best yield no matter what protocol. That’s what the Multi-chain is promising by bridging all the protocols into a straightforward transaction. Right now, Cosmos is the one that’s ahead on the curve with many protocols such as Secret, Cronos, Binance Chain, Osmosis, among others. Polkadot is also working on this, but the hope is that these will be done seamlessly in the background. For now, this is not even close to what it suppose to be, but 2022 looks promising.
The USA Government will find a crypto villain.
The United States is trying to work with cryptocurrency doing a better job than countries like China that have banned crypto altogether. Although people like the Chairman of SEC Gary Gensler, and the Secretary of the Treasury, Janet Yellen, are no crypto enthusiasts. Politicians are way behind on knowing the technology and centralized platforms, plus big-time investors are putting their funds to lobby in congress. So far, it’s looking good. But history has shown that this could go all away once they find someone whose ego is big enough not to follow the pack and get into some trouble that they cannot get out. Enter the “Crypto Villain” we already seen this with people like Martin Shkreli in pharmaceuticals and Bernie Madoff in wall street. Unfortunately, the crypto market has TONS, and I mean TONS of bad people doing shady things. It’s only a matter of time before the United States government unleashes on one of these idiots for the media to capitalize on this and demonize the whole ecosystem.
Just to end this. Nobody is a wizard or right in crypto. Always do your own research and take everything with a pinch of salt. Happy 2022!
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