The crypto industry saw extraordinary growth in 2021, with Bitcoin hitting all-time highs. Bitcoin now shares the spotlight with Altcoins. Interest levels for other cryptocurrencies such as Ethereum, Dogecoin and Shiba Inu are at a high, mass adoption of crypto is peaking, especially with the newfound interest around GameFi and fan tokens this year.
According to a Nasscom report, India’s crypto-tech market is expected to hit $241 million by 2030, potentially creating 877,000 jobs. The estimated money retail investors invested in crypto will be $15.6 billion by 2030, against $6.6 billion now.
What’s In Store For 2022?
Traditional and crypto-focused VC firms are investing heavily. The funds have spurred innovation, especially for nascent projects that require financial backing. Many innovations will increase use cases and accessibility, facilitating crypto acceptance and adoption globally. India stands to benefit as the crypto industry can provide funding opportunities for entrepreneurs, alternative income streams for individuals, and stronger support for Indian creators. Decentralised finance (DeFi) and GameFi are the tip of the iceberg, with tech giants moving into crypto. We are optimistic about global crypto adoption jumping from the current 5% to 20% in 2022.
Regulatory Clarity And Compliance
With crypto moving closer towards widespread retail adoption, there is need for regulatory clarity. Regulatory guidelines will protect investors and projects from exploitation, unwitting participation in criminal activities and malicious acts by unsavory actors.
Crypto is versatile, can be used as currency, asset, reward token, utility token and more. The applicability of crypto and blockchain has disrupted the financial industry, and will disrupt more. Regardless of how the Indian government chooses to classify it, it is pivotal that they support and foster innovation within the blockchain and crypto space in the country.
India has historically invested heavily in science and technology, and created a digital society by providing increased access to the Internet. The country is poised to be a leader within blockchain and crypto. Besides banking and financial services, blockchain can increase efficiency of land ownership deeds, supply chain, agriculture, and corporate sustainability.
Innovations At Breakneck Speed
With greater funds, expect to see more innovation akin to 2021. The increased attention from retail investors in 2021 will help drive innovative endeavors such as social networking, gaming, FinTech, VR, AR and more.
Where businesses were apprehensive on rushing into crypto and blockchain, compelling use cases which address real-world problems may help ease them in. Integrating innovative solutions will build confidence, and encourage more ideas in the space. Crypto innovations in 2022 will hopefully bridge the gap between traditional and new-age businesses.
Explosion In DeFi Space
DeFi saw rapid innovation in 2021, and we will likely see burgeoning interest and innovation in 2022, with SocialFi and GameFi acting as key drivers. The rising popularity of NFTs, play-to-earn games and the Metaverse enrich communities as they do not focus purely on financial gains. They draw interest from a diversified crowd that is invested in identity construction, futuristic gaming, virtual real estate, art collection, fandoms.
The challenges remain in DeFi, particularly in building sophisticated financial instruments, establishing liquidity and capital efficiency and managing risk and security. As DeFi matures, smart solutions will emerge to support the community’s demands.
In 2021 there been much headway in the industry, with brilliant projects and partnerships laying the groundwork for crypto to gain traction. Advancements in regulation, innovation and adoption continue to create synergies that place crypto firmly on its trajectory towards mass adoption. We are excited for the move to a bigger, better blockchain space.