What’s New in the World of Crypto? | Top Crypto Trends in 2022

Ever since their emergence into the mainstream in 2008, cryptocurrencies have continued to grow at an astounding rate. One might argue the volatility of this space, but if compared to 2008, the growth has maintained an overall upward trend. Additionally, crypto is no longer being perceived just as a digital currency that can be used to trade or buy goods and services. Instead, the entire crypto ecosystem has developed into a holistic and versatile framework that can cater to a wide range of applications and use cases.

Over the last couple of years, there have been tremendous developments in the world of crypto and it will continue to evolve over the next few years. In this blog post, we will touch upon these developments and present a detailed story of the major trends in the cryptocurrency industry. Here is what’s new in the world of crypto.

DeFi or Decentralized Finance involves a wide range of financial instruments that enable network participants to deploy decentralized applications and conduct various kinds of transactions without the need for any third-party intermediary. DeFi applications are powered by advanced smart contracts making a majority of the transactional processes completely automated. This concept has emerged as a massive buzzword in recent times and is continuing to evolve. With the growing prominence of cryptocurrencies, DeFi is expected to accelerate further into the world of the non-traditional digital economy. According to reports from DeFi Pulse, in 2021 alone, the total value locked under DeFi Smart Contracts grew to almost $100 billion.

As more and more people have started investing in cryptocurrencies, the concept of yield farming has grown into prominence. This allows people or entities to lend crypto assets to other platforms in exchange for other cryptocurrencies and/or interest. In simple words, through yield farming, users can deposit crypto assets into relevant fund pools and gain high-interest rates out of this investment. This concept has received massive attention in recent times, particularly due to the lucrative interest rates the depositors can generate in a scenario where the rates are considerably low in traditional finance.

Crypto or digital currencies definitely solve some major loopholes and drawbacks of traditional finance. However, one cannot deny that cryptocurrency exchanges are somewhat centralized in nature and that defies the whole purpose of DeFi. To address this, the concept of decentralized exchanges has come up and is gaining a lot of traction. These enable crypto owners to transact their assets with each other without the need for any third-party intervention including that of centralized cryptocurrency exchanges. The trading volume of DEX is gradually increasing and Uniswap is one of the most prominent DEXs in the market today. With the growing popularity of DEX, more users are expected to reap its benefits in the near future.

NFTs or Non-Fungible Tokens are arguably the exciting development in the world of crypto recently. These are basically tokens that represent digital or physical things like artwork, collectables, or even human beings. Unlike fungible tokens like Bitcoin or Ether which can be traded in parts, each NFT is unique and have embedded smart contracts. One of the biggest advantages of NFTs is that they have the potential to solve major issues in the fields of copyright and ownership issues. Some of the major NFT use cases that have been implemented are in industries like art and sports where NFTs are being used to represent artwork and collectables respectively.

For a long time, legacy organizations and institutions have remained sceptical about the cryptocurrency industry in general. However, the trends are changing as a lot of these institutions are actively allocating funds to invest in crypto for a variety of purposes. Surprisingly, billions of dollars worth of institutional assets are now being allocated to crypto. It is important to note that institutional investment, albeit low, as compared to the overall crypto industry, has continued to grow despite the lack of regulatory clarity. Once there are clearer regulations and frameworks in place, institutional investments are likely to take off, particularly in a scenario where these legacy organizations have started to acknowledge the relevancy of crypto as an asset class in today’s dynamic economic setup.

These are the top 5 trends in the crypto industry as of now. However, it is important to note that the entire crypto ecosystem has historically been volatile. Having said that, if there is one thing that has remained constant is the fact that the crypto space has evolved on a continuous basis over the last few years and will continue to do so. Hence, if the question is what’s new in the world of crypto, the answer would be ‘Innovation’.

One such recent innovation in the crypto industry is being brought about by ModiCoin. Modi which stands for “Medium of Defi in Centre of Incorruptible Network” is a community-first tech ecosystem that aims to optimize the way how people handle their digital assets by adapting, trading, and investing in those. ModiCoin also enables high-speed cross-border transactions for a wide range of applications while maintaining high-security standards, thus offering a highly scalable blockchain-based solution in the crypto industry.