A view of 2022: DeFi and DAOs rise
Huobi Research believes that BTC will enter a bear market in 2022. Veterans of the crypto markets have been in this position before and some are prepared to weather the storm, yet again! On the other hand, this research study sees a
brighter year for decentralized finance (DeFi) and decentralized autonomous
organizations (DAOs), because DeFi will continue to expand and DAO governance will eventually become a major driver of activity on the blockchain.
Crypto market growth
This comes after a year of remarkable growth for the crypto-related industries.
2021 saw DeFi increase its position in the market, NFTs soared, cryptocurrency adoption increased and blockchain use reached a broader audience. Regulators are also catching up, with 40 nations having established over 150 distinct rules for cryptocurrency according to the “Global Crypto Industry Overview and Trends” report published by Huobi Research in collaboration with Blockchain Association Singapore. It says, “Specifically, neutral, positive, and negative regulations account for 59%, 23%, and 18% of the new laws, respectively. In addition, stablecoin, NFT, metaverse and DAO have appeared on the list of “special notice” of regulators.”
A bad year for Bitcoin?
According to Huobi it may be a particularly challenging year for Bitcoin (BTC)
due to steps being taken by the U.S. Fed, resulting in the dollar liquidity losing its return. But this doesn’t mean that the entire crypto system will be similarly
affected. Indeed, Huobi reports there will be significant developments in other sectors, especially DeFi. This market rose from $19 billion in January 2021 to a high of $250 billion in total value locked at year’s end. Huobi also claims we will see DeFi 2.0 arrive this year.
The demand for DAO governance as an on-chain governance tool will also
increase, as will the funds DAOs manage in the future. Furthermore, the
management of DAO funds may link with various DeFi applications, allowing
10 major predictions
To sum up. Huobi’s reports makes 10 major predictions for 2022: “Looking to the future of the Crypto industry, we hereby make 10 major predictions for the upcoming year of 2022:
1).Global liquidity shrinks, Bitcoin will face bear market;
2) DAO will be a major on chain governance form; 3 Cross-chain will become the infrastructure under the era of multiple chains;
4) DeFi embarks on 2.0 , causing an explosion of on-chain perpetual contract and forward contract;
5) CBDC will land steadily, cross-border payment processing will become the focus of research;
6) Lending market will thrive for institutional participants;
7) Explosive growth in NFT lending and derivatives;
8) New Layer 1 chains will appear, forming a new player structure ;
9) Insurance market for crypto will thrive;
10) Interim mainstream scaling solution will meet the best
time for development.”