Coinbase’s predictions for the crypto market in 2022
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In a long list of 10 points on the company blog, Surojit Chatterjee, Chief Product Officer (CPO) of Coinbase, provided 10 predictions on the crypto market for 2022.
Crypto market 2022, the future of Ethereum according to Coinbase
Among these predictions, surely the one that perhaps deserves the most attention is about Ethereum and its promise of greater scalability, driven by upgrades, which should be active from June.
In his post, Chatterjee wrote:
“I am optimistic about improvements in Eth scalability with the emergence of Eth2 and many L2 rollups”.
According to the manager, Ethereum will thus also be the basis of the so-called Web3 revolution, the one focused on blockchain and cryptocurrencies, but at the same time there will be improvements in competing blockchains such as Cardano, Solana or Avalanche.
“The Traction of Solana, Avalanche and other L1 chains shows that we’ll live in a multi-chain world in the future. We’re also going to see newer L1 chains emerge that focus on specific use cases such as gaming or social media”.
New privacy applications
The Coinbase manager is also confident that many new privacy-focused applications will come out in 2022, which will most likely also bring more regulatory attention from regulators.
“We’ll see new privacy-centric use cases emerge, including privacy-safe applications, and gaming models that have privacy built into the core. This may also bring in more regulator attention to crypto as KYC/AML could be a real challenge in privacy centric networks”.
DeFi, NFTs and Metaverse
Chatterjee also talked about DeFi, NFTs and Metaverse in his post, explaining how with regards to DeFi, due to its exponential growth, insurance protocols that guarantee users’ funds will likely emerge in 2022.
“DeFi insurance will emerge — As Defi proliferates, it also becomes the target of security hacks. According to London-based firm Elliptic, total value lost by Defi exploits in 2021 totaled over $10B. To protect users from hacks, viable insurance protocols guaranteeing users’ funds against security breaches will emerge in 2022″.
NFTs will become more and more popular and compete with traditional social networks in terms of popularity, thanks to the use of the metaverse, which the manager says will be the future of social networks.
But the metaverse and NFTs will also increasingly play a role in the marketing and sales campaigns of large groups.
“Brands will start actively participating in the metaverse and NFTs — Many brands are realizing that NFTs are great vehicles for brand marketing and establishing brand loyalty. Coca-Cola, Campbell’s, Dolce & Gabbana and Charmin released NFT collectibles in 2021″.
All this will lead to many Web2 companies wanting to enter head-on into the Web3.
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