Leading data analysis platform Arcane Research published an extensive report on Tuesday titled, ‘The Weekly Update’, highlighting major events that dominated the crypto market along with providing numerous predictions focusing primarily on Bitcoin [BTC], altcoins, nonfungible tokens [NFT], etc. Here’s what crypto investors can expect moving forward.
Bitcoin will remain closely linked to that VIX. Risk on prevail, shocks in tradfi ->shocks in bitfi
The report observed that Bitcoin has seen tremendous institutional adoption, especially after the outbreak of the Covid Pandemic. However, one trend was evident throughout 2021- Fear in the legacy financial institutions has a direct correlation with the king coin’s price action. Spikes in the Volatility Index [VIX] spurred BTC sell-offs implying institutional investors deem Bitcoin in the overall risk-on asset category. So, the report advises investors to be aware of stock market headwinds’ in 2022 and their effect on the asset’s short-term price trajectory.
Bitcoin Hashrate will reach 300 ETH/sec
Bitcoin hash-rate plunged to a new low following China’s clampdown back in July 2021 but managed to post a quick recovery and has since maintained steady momentum. As gauged from the chart, on December 10, the hash rate has doubled from its previous bottom and charted a new high that shows no slowing down.
XRP and Cardano will fall out of the top 10 cryptocurrencies by market cap
With respect to Altcoins, Arcane Research noted the significant gains on Binance Coin [BNB] this year, surging by a massive 1,600% in May and winding the year up by 1,344%. Further, looking at the growth in market capitalization from altcoins such as Solana [SOL] and Terra [LUNA], along with the NFT craze, the analysts are predicting that XRP and Cardano [ADA] will exit the top 10 list.
Alternate layer ones other than Ethereum will continue to surge
While Ethereum [ETH] has outperformed BTC this year with a gain of 455% to 73%, other layer-one blockchains too managed to surpass ETH. Terra Luna wrapped up 2021 with a surge of 14,823%; Similarly, Fantom [FTM] too surged by 13,549%.
Arcane Research experts are betting high on the NFT sector for 2022
Traditional gaming companies will continue to explore ways to implement NFT in the game
As the year draws to a close, Arcane Research in their report stated that the crypto ecosystem would be no longer limited to the skyrocketing sales of NFTs, and blockchain games like Splinterlands and Alien Worlds that have around 526k daily active users, according to DappRadar. Therefore experts predict that in 2022, traditional gaming brands will branch into the digital collectibles space and capitalize on the burgeoning market.