2022 might see DOGE, SHIB fall, but the real winners will be…
As 2021 comes to a close, certain crypto-themes are expected to gather momentum and steam in 2022. According to Messari’s latest report, in fact,
“Crypto, or the recently en vogue ‘Web3’, is an unstoppable force in the long-term.”
Metaverse and Web3
Economist Natasha Che agrees, with Che recently opining that “mass adoption of web 3 tech is only starting.” Institutions are going big on Web3 services and the Metaverse space. According to another report, SK Square Co., the investment arm of Korea’s oldest conglomerate, is accelerating in the sector. A statement made by Managing Director Huh Seok-joon suggested,
“Our business needs to evolve into the metaverse.”
However, at the moment, Web3 might not be enjoying the kind of appeal that DeFi did throughout the year. The question is, will that change come in the coming year?
As per reports, Web3 ventures do not currently have a lot of paying customers. But, that can soon change to a “multitrillion-dollar opportunity,” according to Ark Invest Founder and CEO Cathie Wood. In an interview with CNBC, she said,
“[Metaverse is] a big idea that will probably infiltrate — just like technology is, anyway — every sector in ways that we cannot even imagine right now.”
On that note, Brock Pierce, Chairman of the Bitcoin Foundation, believes that we can “expect a battle between crypto-native metaverse and ones launched by gaming and corporate entities like Meta.” This message actually resonates with many crypto-enthusiasts.
Actor Keanu Reeves too recently commented that Meta’s Metaverse will not support innovation, as he explained that the concept is older than Facebook.
Frontrunners
Apart from Web3, Che also predicted that blockchain gaming, proof-of-stake L1, L2 platforms, and cross-chain solutions will be the winners as we approach the new year. She added,
“Good thing is crypto hype has drawn many game design talents into the space. At least some of their work will start bearing fruit in 2022. Watch out for serious players like Gala Games.”
Billionaire entrepreneur Mark Cuban is also psyched about “new and unique” crypto-applications that can “replace existing business processes.”
Who are the underperformers?
Another area of interest for 2022 is meme coins. Dogecoin miners surpassed $1 billion in revenue recently, despite its sideways price action. Meanwhile, Shiba Inu had fallen by 34.2% in a month, at the time of writing.
The resilient community can likely continue meme investing over the coming year. However, Che believes that the sector might underperform in 2022. She concluded,
“Like GameStop, these tokens disproportionately benefited from stimulus checks/monetary loosening. As those forces reverse & inflation lowers, discretionary cash spend for small retail investors, market cap rankings for Doge & Shiba may have to drop.”