Predictions For Crypto Wallet App Development Future in 2022

The year 2021 will go down in history as the year when bitcoin finally enters the mainstream. It wasn't simply that some tokens saw tremendous gains, with Bitcoin soaring by 60%, Ethereum by more than 400%, and Binance Coin by 1,300%. Rather, it was the widespread adoption of cryptocurrency by institutional investors, large corporations, and even governments, such as El Salvador's adoption of Bitcoin as a legal tender, as well as the innovation and integration seen in the DeFi, NFT, and Metaverse spheres.

Add in the fact that a number of well-known figures, including Elon Musk and Eminem, have embraced crypto wallet app development, and there are a slew of grounds to claim that 2021 will go down in history as the most important year ever. So, what will happen in 2022?

One thing is certain: crypto has a difficult act to follow, and while no one is forecasting a 2018-style implosion, the market may struggle to replicate last year's spectacular gains. However, as we enter the new year, there are still plenty of bright spots in the crypto realm worth keeping an eye on.

1. To increase financial inclusion and opportunity through DeFi

In 2021, the decentralized finance space, which allows financial products to be created without the use of intermediaries such as banks, demonstrated that it has genuine legs. DeFi contracts are estimated to have a combined value of $41 billion by March of this year, as adoption grows across the industry. As a result, 2022 is shaping up to be a watershed year for hundreds of new DeFi dApps.

DeFi is gaining traction not only because it gives its users full financial freedom and gives banks access to the unbanked. It also offers millions of people legitimate investing options. Yield farming, which incentivizes crypto asset holders to secure decentralized networks, is one of the most prominent fields of DeFi investing. Compound Finance Protocol is one of the most popular DeFi apps in this regard, allowing users to supply liquidity in a number of liquidity pools as long as they have an Ethereum wallet and earn incentives in accordance with the protocol's basic principles.

DeFi also paves the way for more complicated, and potentially more lucrative, financial instruments. Synthetix, for example, creates synthetic assets in the form of ERC-20 smart contracts that track and generate returns on crypto assets without requiring the user to own the token. SynFutures is a similar project that allows you to synthesize and freely exchange Ethereum-based cross-chain and off-chain assets. SynFutures uses a Synthetic Automated Market Maker, which allows consumers to just retain one asset among trading pairings while a smart contract synthesizes the other.

The beauty of DeFi apps is that they give you access to assets that regular investors don't have, and they can help you make big money if you can predict market changes.

2. NFTs continue to pique people's interest.

The overall sales volume of non-fungible tokens topped $20 billion in 2021, bringing them into the spotlight. A single JPG created by the artist Beeple sold for a record $69 million, and hundreds of other multi-million dollar transactions of Bored Ape Yacht Club and CryptoPunks NFTs led the way.

While the enthusiasm and eye-watering price tags of NFTs may begin to fade, there's no doubt that they'll be there for a long time. The truth is that they have far too many possible applications, spanning from gaming to the arts, real estate, and asset tokenization. The advantages of using NFTs are obvious as well, with artists and musicians, for example, being able to incorporate automated royalties into the resale of their works. Meanwhile, by employing NFTs to fractionalize property ownership, real estate dealers can reach millions of potential buyers.

It suggests that not just NFTs, but also the marketplaces that offer them, have a bright future. OpenSea is currently the obvious market leader, accounting for more than 60% of all sales in 2021. However, keep an eye out for additional decentralized systems like Infinity to gain traction. Infinity is a decentralized NFT marketplace that aspires to outperform OpenSea by better representing and embracing community demands. Infinity is working with Common Protocol to transition to a direct governance model, as well as making it easier to list NFTs and at a reduced cost, by just collecting a 1.5 percent transaction fee that goes to its community-controlled treasury.

3. The year in which the Metaverse is shaped

The Metaverse's dynamic character as a facilitator of social contact, recreation, trade, business, gaming, and education, to mention a few applications, will assure that it expands to become a much larger part of our culture and economy by 2022.

The Metaverse, a digital universe combining technologies such as virtual reality, augmented reality, and video in which people interact with digital avatars, holds a lot of potential. It will usher in an era in which our digital and physical lives become increasingly entwined, simplifying connectivity and making each of our online interactions more lifelike.

While Mark Zuckerberg has been a prominent proponent of the Metaverse, it will not be dominated by Facebook. The really decentralized metaverses, on the other hand, will grab the public's imagination. We're talking about worlds like The Sandbox and Decentraland, where residents can use NFTs to gain the rights to digital pieces of land. Another hot Metaverse potential is play-to-earn gaming, with DEA developing an entire virtual society around its Play Mining platform, which allows users to explore new worlds, combat and perform tasks, acquire in-game commodities, and sell them with other players.

The Metaverse may still be in its infancy, and no one knows what it will look like or how much it will influence how we interact with technology in the future. Nonetheless, 2022 will be the year that lays the foundation for the Metaverse and its expansion over the next decade, influencing how people work, relax, play, and socialize in the virtual world.

4. Increase the number of legs on Web3

The coming together of DeFi, NFTs, and the Metaverse is resulting in the establishment of a Web3 ecosystem, and all signals point to 2022 being the year it happens.

Web3 is the next step in the internet's evolution, which started with the static Web1 that was best represented by Netscape and AOL. Then there was Web2, which was significantly more interesting but was dominated by large firms such as Google and Facebook. We shall see a truly decentralized and permissionless internet with Web3, in which users regain ownership of their data.

Play-to-earn gaming, in which users may earn and exchange NFTs to make money while playing games, will once again be a major driver of Web3. As proven by Axie Infinity and its user base of over 2 million monthly active players, as well as Solana, which has collected a $150 million Web3 gaming fund, P2E gaming has already made it big.

However, Web3 isn't just for gamers. Siacoin, a decentralized cloud storage platform and marketplace that works by encrypting and distributing files over its network, is one of the other applications. Unlike typical cloud storage, Siacoin lets users to control their private encryption keys and hence own their data.

Lum Network, on the other hand, promises to transform the world of product reviews by offering companies incentives to reward those who take the time to write an honest review, whether favorable or bad. Lum Networks does this using its blockchain-based decentralized reward system, which allows anybody to audit its immutable records and verify that a customer who gave a 1-star review received the same benefit as a customer who wrote a 5-star review. It operates by awarding prizes depending on the quality of the reviews rather than the number of stars awarded.

5. DAOs should work together for the greater interest of their communities.

DAOs, or decentralized autonomous organizations, had a banner year in 2021, quickly growing into community-led organizations structures for a variety of purposes, including investing, fundraising, tokenized asset management, and transparent governance.

DAOs are a real alternative to large firms' traditional board structures, and they offer a new method for crypto enterprises to go public. DAOs, which enable treasury administration and protocol development through blockchain-based smart contracts, govern some of the most popular DeFi apps, like Uniswap and MakerDAO.

Invest in some of the most popular DAOs. Take BitDAO, which, according to its website, invests in DeFi initiatives and currently has more than $3 billion in assets in its treasury. PleasrDAO, for example, was founded by NFT collectors, digital artists, and DeFi leaders to purchase Pplpleasr's Uniswap V3 NFT. It has now bought a large number of digital artworks and was able to receive a $3.5 million loan in June by using some of its high-value NFTs as security.

GoodDollar is a new DAO that aims to persuade other DAOs to take on more social responsibility by supporting the distribution of Universal Basic Income. The launch of GoodDollarV2 in December established a new benchmark for UBI distribution. It works by using yield farming and liquidity mining rewards to support the protocol's long-term generation of capital flow, resulting in crypto-based UBI for the entire community.

It's a project that's likely to gain traction, since, as 2021 has shown, the concept of DAOs with distinct objectives and identities that prioritize the interests of their communities has already gained traction. We should anticipate to see more DAOs strengthen their collaboration as they work for the good of their communities as we approach 2022.