When it comes to conversations about the crypto world, names like Ethereum and Bitcoin come to mind first. While Ethereum price and Bitcoin price are at the top in the industry, other cryptos with potentials you can invest in.
Whether you are a new or avid investor, one thing about the cryptocurrency industry you should always have at the back of your mind is its volatility. The cryptocurrency market is so volatile that you can lose a huge portion of your investment if care is not taken. However, the cryptocurrency market’s volatility is what makes it so lucrative.
In 2021, both Ethereum and Bitcoin prices were booming, recording market cap in trillions of US dollars. Towards the end of 2021, Bitcoin’s price crashed from its soaring $70,000 to about $30,000. Similar Ethereum and other crypto assets saw similar volatility.
Seeing the market in such a state can leave investors reconsidering whether or not to invest their hard-earned money in cryptocurrencies. However, while we are still in the early stages of 2022, crypto prices have begun to rebound, although they have remained highly volatile.
In this article, we will be talking about the predictions of many financial experts about Ethereum price and Bitcoin price and taking into account developments coming into the Bitcoin and Ethereum network in 2022. First, let’s talk about how the global adoption of crypto will affect the price.
How can global crypto adoption affect the prices of cryptocurrency?
One of the major factors many financial experts are focused on is the global adoption of cryptocurrency. Currently, there are about 221 million users of cryptocurrencies around the world. This figure accounts for only about 3% of the world population. In other words, there are still many people who aren’t using crypto.
However, analysts highlight that though the current adoption of crypto may seem low, it grew significantly (over double) from its former position four months ago. And if this progress is maintained, it will mean that cryptocurrency will soon be leaving the early adoption phase and enter an inflection point of hyper adoption.
Precise number prediction aside, when a cryptocurrency reaches that point of hyper inflection, only those who buy crypto now that its price is low will make the most profit. Because come to think of it, the more people invest in cryptocurrency, the more the demand for that certain cryptocurrencies. And when there’s an increase in the demand for any commodity, it will eventually cause an increase in its price.
What’s in store for Ethereum and Bitcoin prices in 2022?
After the overwhelming market crash towards the end of last year/beginning of this year, Binance BNB, Solana, Cardano, and XRP are beginning to soar again. The volatility of these cryptocurrencies has left many wondering what 2022 truly has in store for Ethereum and Bitcoin prices. Well, let’s dive into some predictions many renowned analysts agree on for 2022.
Crypto regulation has been pushed up the agenda of the government
The first thing you should expect in 2022 is better crypto regulations. Unlike in previous years where governments worldwide didn’t truly know if they were or weren’t to stand with crypto, in 2022, things would surely be different.
After the huge bull run in 2021, governments worldwide have pushed crypto regulations up the agenda. By prioritizing crypto regulations, it will help with the growth of the Blockchain-based stable coins and set off regulator alarm bells.
Growth of decentralized application
Decentralized applications are the future of cryptocurrency—especially Ethereum, one of the largest supports of decentralized applications, with developers building new ones. At the moment, there are almost 3000 decentralized applications in the Ethereum network ranging from games to finance to social media and so on.
But while Ethereum is the most popular crypto with decentralized application support, Bitcoin Blockchain also allows developers to build decentralized applications. While building a decentralized application on Bitcoin Blockchain is somehow restricting, 2022 is set to come with developments that will ease the process.
Market cap is significantly higher now
Unlike the crypto market’s value five years ago, today, the crypto market has grown to become a giant. The market cap of the crypto market in 2022 is significantly higher now. Come to think of it, the institutional investors in cryptocurrency right now are the major contributor to the current state of the market cap.
Considering Bitcoin price and its total token in circulation, it’s understandable why it’s so stable. The advantage of a large enough market cap is less volatility. Investors can also expect fewer disappearing interests and price drops like what was seen in 2018-2019. Overall, the future possibility of crypto contributes to its building block today.