The year 2021 was a mixed bag for cryptocurrencies.A few like Solana (SOL) and Axie Infinity (AXS) exploded in 2021, whereas biggies likeBitcoin (BTC) experienced several ups and downs. In 2022, cryptocurrencies are likely to continuedominating news headlines again. We might see some new Bitcoin and Ether exchange tradedfunds (ETFs), new indices tracking the price of high market cap cryptos, and Bitcoin pricefinding its true resistance level. Which is the crypto that would explode in 2022? Thisis a tough question that warrants a thorough analysis. Also read: 5 breakout altcoins with metaverseunderpinning.
2021 crypto trendsHistory repeats itself, and this phrase might hold true for cryptocurrencies. By comparing two popular cryptocurrenciesand their performance in 2021, we might get an idea what's coming in 2022. Bitcoin (BTC)and Axie Infinity (AXS) can be a good comparison. The former was the biggest, most popular cryptoat the beginning of the year, and the latter wasn't even in the list of top 30 crypto assetsby market cap. Bitcoin and Axie Infinity comparison makessense because these two are very distinct crypto projects. In the wake of the financialcrisis of 2007-2008, Bitcoin started as a humble competitor to fiat currencies. Itscreator, Satoshi Nakamoto envisaged a tomorrow.
Where a blockchain-based digital currencycould bring down the cost of remittances besides making money transfers quicker. From a fewcents to a price tag of nearly US$ 29,000 on January 1, 2021, Bitcoin can be said tohave a great ride. Also read: Explained: Cryptocurrency categories– DeFi, NFT, Metaverse Axie Infinity is a gaming project that usesthe decentralized ledger attribute of blockchain technology to compete with conventional games.AXS is not a typical 'blockchain-based digital currency' project. The game uses AXS as itsnative token, which users can buy, earn, spend and sell. AXS is a kind of medium of exchangewithin the game, and outside, it is a tradable asset. From half a dollar on the first dayof 2021 to nearly US$100 as of now, AXS dwarfs.
The 2021 returns of not just Bitcoin but alsoof Ether and Dogecoin. This analysis indicates that 2022 could bea year of crypto projects that are loved by users for their real-world utility. Bitcoin,for now, is just an asset, which one can hold or trade. Next year could finally see a cryptocurrencywith multiple dimensions to engage users. Data provided by CoinMarketCap.com The rise of metaverseIn 2021, crypto enthusiasts closely followed the development in metaverse space. Much ofits popularity can be attributed to Facebook's rebranding to Meta. If a tech giant with amulti-billionaire CEO is shifting focus to the metaverse, there's likely some compellingreasons behind it.
Metaverse allows users to enter a fictionalworld where they can literally do what they aspire to in the real world but cannot dueto physical, legal and other barriers. But before one assumes that it will be Facebookas the first mover in the metaverse, let's know about crypto projects in the space forvery long. Axie Infinity is a metaverse for it allows gamers to enter into a virtual realityworld, undertake combats, own fictional characters and so on. It also brings the possibilityof owning non-fungible tokens (NFTs) and trading them to make money. That's the play-to-earnmodel, which of late has gained traction. Axie Infinity has many competitors, of whichDecentraland (MANA) and The Sandbox (SAND) are the biggest in terms of market cap. Axie'srise in 2021 could be one way to predict the.
Rise of these two in the coming year. Also read: What are DeFi games & which arethe most popular DeFi games? Decentraland (MANA) may explode in 2022First, exploding here doesn't necessarily mean an exponential price appreciation. EvenBitcoin can be said to have exploded in 2021 – S&P Dow Jones created BTC indices andBitcoin ETFs were launched – though price appreciation wasn't as high as its nearestcompetitor, Ether. Decentraland's explosion in 2022 basicallymeans that this blockchain-gaming project might remain one of the most popular cryptos,thanks to metaverse underpinnings. Decentraland is a metaverse where users canown land, build on it and earn revenue, and.
So on – all in its virtual reality space.Built using Ethereum's blockchain network, which also makes Ether a good watch in 2022,Decentraland is a fairly new crypto project launched in February 2020. The project allowsusers to own the so-called parcels of land as NFTs, using Ethereum services. As we know,NFTs can be listed on multiple exchange platforms like OpenSea to monetize the holding. The concept of the decentralized autonomousorganization (DAO) also underpins Decentraland. Here, users of the platform can stake MANAtoken holding to participate in voting and take governance decisions without any centralizedauthority as it exists in conventional gaming. Also read: How to invest in cryptocurrencies?.
Interest in The SandboxThe Sandbox is a close competitor to Decentraland. In the past few months, The Sandbox has earnedthe participation of SoftBank as an investor and of Adidas as a user of the project's metaverse. Market cap of metaverse coins Data provided by CoinMarketCap.com Decentraland has yet to find such patronage,but it too attracted its fair share of support in 2021. In June, the famous Sotheby’s auctionhouse created a digital version of its headquarters on Decentraland. A piece of land on Decentraland’sfictional world recently sold for more than US$2.4 million. Many analysts were shockedby the sale, which even defies the high inflation.
In the actual real estate world of the US. Decentraland price prediction 2022MANA crypto had a market cap of a few million dollars on January 1, 2021. As of now, ithas a market cap of over US$5 billion. The true bull-run in MANA began in late Octoberwhen the price of one token appreciated from under one dollar to over US$3.5 in less thana week. By late November, MANA touched US$5.5 before bears entered the wider cryptocurrencymarket. As of now, MANA is trading at nearly US$3.2.The low price per token might be one of the reasons why investors would want to park moneyin it in 2022. Besides, its metaverse and NFT features are the real attraction. If Decentralandcould repeat Axie’s 2021 history, its backers.
Are in for extraordinary price appreciationin 2022. Also read: 5 emerging blockchains that maybecome Ethereum killers in 2022 Bottom lineCryptos are profitable only when the investor parks money and books profit at the opportunetime. There can be no exact prediction on which crypto will explode in 2022. But lookingat 2021 trends, metaverse cryptos are a likely contender. Decentraland might repeat AxieInfinity’s history and find more backers for its fictional world where assets can beowned and monetized.