The Grayscale CEO shares his insights into five key trends that are bound to shape our markets in 2022

[CryptoMund]

https://cryptomund com/posts/The-Grayscale-CEO-shares-his-insights-into-five-key-trends-that-are-bound-to-shape-our-markets-in-2022-p229

The year ahead and beyond will see an expansion of the crypto world with more developments in infrastructure, proliferation of protocols, NFTs evolving into their next stage. These advancements have been made possible by new players who are excited about blockchain technology such as Grayscale's CEO Michael Sonnenshein for his firms' commitment to this space. A few years ago people would be hard-pressed trying to find a way out from under government regulations but now we're seeing entrepreneurs create companies like trading desks at banks or even start investing themselves without any previous experience.



The CEO of this company takes a moment to look back and state that they are grateful for how far things have come in such little time.



Crypto and Web3 continue to grow in popularity, despite recent setbacks. Crypto's increasing footprint is thanks to its rising acceptance by the media as well as regulators worldwide; it has also been woven into many aspects of daily life for many people now-a days such that we may not even realize how much crypto influences our lives unless an event like last year happens again.



As for his predictions on crypto in 2022, the CEO says he is focused rather than listing out specific coins or tokens. Instead what we can expect from him are five key trends that will shape this new frontier over next year and beyond:



Crypto infrastructure development
Crypto infrastructure is quickly becoming a necessary part of the digital economy. This includes exchanges, wallets and analytics software for individuals who want to get involved with cryptocurrencies as well as businesses looking at ways they can integrate these new tools into their business model or provide services based on blockchain technology. Maintaining good relations between consumers/customers and providers will be essential if we're going forward in maintaining stability within this space.



The crypto economy and existing financial markets will likely provide some of the most compelling investment opportunities in the long-term.



More protocols than ever before
Crypto is becoming more and more complex, but that's not slowing down the growth of new protocols. The number continues to skyrocket as does demand for these coins- so much so that it has been declared "staggering.", reports the CEO.



The battle for technological supremacy has never been more intense, with all kinds of new innovations coming out on both sides. Sorting through these protocols to separate the wheat from chaff continues to be a challenge requiring deep knowledge in technology and the marketplace.



Expansion of Web3 and the metaverse
In a world where data is king, the Web3 experience promises to give users more control over their personal information and digital footprint. Per CEO Sonnenshein's definition of this new future - which includes everything from commerce through entertainment into news media outlets with social networks attached. Users will be able not only make decisions about what they share but also receive payment for products or services provided on platforms built upon these technologies.


Web3 empowers users in a revolutionary way by flipping the script.


NFT use cases beyond digital art
The CEO of this company has said that they are working on a new form of collateral for the NFT market, which will change as it evolves over time. The most notable examples he gave were authenticity and provenance in art pieces or ownership when purchasing concert tickets online - all areas where blockchain technology could be used effectively to solve problems currently faced by consumers today such as getting rid of scammers who take their money without delivering on promised goods/services.



Digital verification is a process that authentically verifies the material value of digital assets. The use and spread within this field has seen rapid growth recently, which demonstrates its importance not just for those in commerce but society at large. "The public discourse around NFTs (non-fungible tokens) demonstrate how they're increasingly valuable as more people begin to realize their potential - both as an investment or used by consumers looking to make purchases without third party interference."



New regulation and policies
Sonnenshein believes we have never before seen regulators and policymakers so engaged with the crypto ecosystem. He attributes this to increased regulation, which he says will be both inevitable but beneficial for Bitcoin in particular because it forces innovators into compliance standards set by government leaders rather than staying true only to EPS (Ethereum Popularity Standard).



With this new legislation, United States citizens will be able to enjoy the benefits of cryptocurrency while also protecting themselves from any risks associated with these digital currencies.



The CEO of a major industry association is incredibly excited about the fast-paced growth and potential that crypto offers. He believes we're at an exciting point in time where innovation can happen more easily than before, because there are fewer barriers for those looking to create something new or disrupt existing systems with innovative ideas.



The future of the world as we know it may be a merging between physical objects and their digital counterparts. Sonnenshein believes that while this path is relatively unknown, there will still come about some sort or hybridization between what's been traditionally called "real" life versus virtual realities like those found in video games where users inhabit an alternate reality through certain technologies such as headsets which can make them feel like they're actually present at whatever scene you're viewing - even if these simulations typically contain no real people whatsoever.

[WalletInvestor]

These are some great insights into factors that may shape the crypto economy in the near future.
I think another thing worth mentioning is that, as time moves forward, other markets such as the stock and the forex markets are affecting crypto prices more and more. This is partly due to the fact that a lot of "traditional" investors now have cryptos in their portfolios, and if events on the stock market influence their sentiment or risk appetite, that will create a ripple effect towards cryptocurrency investments as well.