As 2021 comes to its end, the behavior of Cryptos also varies, taking into account several factors. Those factors are primarily unpredictable and immeasurable, yet it is possible to estimate some expected and fundamental outcomes which can most likely be expected in the behavior of our well-known Cryptos.
2021 In a Nutshell
Overall in 2021, the market value of Cryptocurrencies added some 1,5$ trillion on its way.
Bitcoin (BTC) had drastic changes in its value, hitting its new record all-time high price of $68,000. At the beginning of the year, it had over 70% shares of the market, yet during its route up to this way, it lost the market share being in the position of 40%. Now when it has more than a 30% drop from a record high, most of the predictions for BTC are green, predicting an upcoming bullish outcome.
Ethereum (ETH), on the other hand, had an increase in market capitalization throughout the year. The market cap for the second-largest cryptocurrency in Nov 2021 was 549$ billion showing profitable growth throughout the year. The reasons behind the development of this crypto are several, yet all of them are important and reasonable enough to consider. The first reason is powering the NFT market. Most purchasing, selling, or exchanging NFTs are held through the Ethereum blockchain, thus giving it a significant boost. Also, the launch of Ethereum 2.0 proved to outperform the market, providing completely new transaction speeds and opportunities.
Other coins (Altcoins) had different trends, growths, and crushes, depending on the situation, popularity and demand. Those coins such as Gamestop tokenized stock had an increase fostered by the banded retail traders and other fans through spamming, advertising, and organic growth of the popularity.
Dogecoin (DOGE) had a drastic increase in its value through the involvement of Elon Musk. Elon Musks’ participation at the meme coin altered its path, reserving the 12th place on the capitalization charts of cryptos. According to Coindesk, Dogecoin had a 596.6% return in January 2021.
Solana (SOL), sometimes referred to as a second Ethereum, overgone almost a considerable change throughout the year, starting from ≈ 1.51$ and getting high up to ≈259$. The technology behind crypto is mainly known for its cheaper and quicker transaction blockchain.
Possible Outcomes for 2022
The end of December 2021 and the beginning of January 2022 haven’t been a good start for cryptos for the upcoming year. Most cryptos have undergone several crashes, and overall the indicator of the market stays bearish. Such an unlucky period for cryptos has several reasons behind them, yet they can give us a broader understanding of the future.
Last year, Kazakhstan became the world’s second-largest center for Bitcoin mining, handing over first to the United States. When riot movement started to take place on the streets, Russia sent the troops to stop significant outcomes, which eventually caused so-called “a nation-scale internet blackout.” This was not good news for miners in the region, while the blackout lasted five days. The fact that Kazakhstan holds 18% of global bitcoin mining power makes it evident for understanding the freefall for BTC.
Other cryptos also followed the path of Bitcoin because a substantial number of people initially buy in Bitcoin with the intention of trading it for altcoins and profiting from the transaction, which means that it has the power to alter the behavior of almost the cryptos in the market.
Most of the analysts believe that Bitcoin is going to hit its major target of being 100,000$. Yet the year started with the red indicator on the chart; both traders and analysts stay calm to the crash and wait for the growth. As already said, the colossal fall of crypto can increase the buying power among the holders. For some, this can be an opportunity to buy the crypto for a long-term holding, a “Second Chance” to buy. Indicators are green for the first quarter of 2022. The initial volume is getting back, thus bringing Bitcoin back to its initial bullish position.
Indicators for Solana are also green when most of the predictions stick to ≈310$ for the first half of 2022. The other half also stays positive, giving ≈60% growth of the price to $428. The factors behind Solana’s upcoming growth are several, starting from
As previously mentioned, the project called ETH 2.0 is about to change the understanding of the Ethereum blockchain by making it a more secure, stable, and fast environment for transactions. This technology also provides an ability for miners to get more Ethereum with less spending and with better environmental care. In fact, ETH 2.0 is going to continue its progress towards launch in 2022, ensuring the hype, which eventually leads to a price increase. Predictions of Ethereum stick to $6,000 by the end of 2022. Such predictions can also be made by famous billionaires such as Mark Cuban, and one of his tweets suggested an upcoming upside trend for Ethereum in the near future.
“I like Eth/L2s more, and there is no point arguing the Trilemma, halving, or inflation. I like it more because I can see an unlimited number of applications that will change the biz/consumer world forever. And to use them you need to buy Eth/L2. BTC doesn’t have that demand pull” ”- Mark Cuban