Thread by @MehdiFarooq2

My 22 predictions for crypto in 2022.

🧵👇

Disclaimer - This is not financial advice.

These are some of the trends I am seeing as an analyst in public markets and degen in private markets (weekend hobby is to ape in private deals brought by syndicates and DAOs).

1.@ethereum 2.0 PoS will happen by the end of 2022.

2. Alternative Layer-1 ecosystem will experience a higher growth rate than $ETH. $SOL, $LUNA, $AVAX, and $NEAR accumulatively will flip the ETHs market cap.

3.The layer-2 ecosystem will experience a higher growth rate than Ethereum. $MATIC can enter the top 10 market cap (ZK-rollup baby! ).

4.Multi-chain Layer-1s and Layer 0 ( $ATOM, $DOT, $AVAX ) will outperform monolithic Layer-1s (e.g., $SOL, $ADA).

5.@Polkadot and @cosmos will have their "multi-chain moment" with the benefit of XCM and Cosmos IBC vividly visible. My best guess is Q2 for ATOM and Q4 for DOT.

6.$UST becomes the second largest stablecoin, behind $USDT. Other algorithmic stables will try to copy UST but it will be a bit late

7.Decentralized crypto indices (e.g.@defipulse index) will become increasingly popular. I will look for smart contract/L1, infrastructure, and DAO indices for my personal portfolio.💪🚀

8.Blockchain gaming projects with useless gameplay will underdeliver. There will be a contraction in valuation. The market narrative will be that this crypto segment ran ahead of its fundamentals.

You can check my full thesis

https://twitter.com/MehdiFarooq2/status/1468267591646986249

9.AAA gaming studios will enter crypto gaming and NFTs. This is a no-brainer!

10.NFTs will expand beyond (PFP)-. Unique applications in music, creator economy, sports economy, metaverse, and gaming will emerge.

@efinity, @rmrk, and @Unique network could capture these themes on an index level.

I have done Deep Dive on all three

11. NFT+DeFi+Gaming composability. For example, lending/borrowing of a game asset as NFT?

Check out @arcade_xyz

12.Metaverse will start maturing and we will start seeing more useful use cases – i.e office calls/meetings.

@paxworldteam is one project focusing on this.

13.Virtual lands will continue to increase in value. Especially in metaverses with strong network effects @TheSandboxGame , @decentraland @cryptovoxels

14.Big brands will use NFTs to increase brand loyalty and recognition. They will even subsidize the cost of minting NFTs.

15.Blue chip NFT projects like @thecryptopunks and @BoredApeYC will do well but a lot of apes, penguins, and punks will fade out.

Blue-chip NFT will become a membership card for exclusive communities and permission to slide in DMs of "important people"

16.Security tokens in Q4 will start picking up as a theme – @Polymesh ,@avax, @IxSwap are some exciting plays to capture this.

My DD on $POLY

My friend @dylanlove did an excellent podcast

17.DeFi sector will fix its token economics beyond being Ponzi – @iearnfinance did this.

18.Crypto structured products like @ribbon finance theme will become one of the hottest themes in DeFi.

19.Protocol-owned liquidity (@TokenReactor and @CurveFinance 's vote locking mechanism will become the norm going forward for DeFi

20.Crypto as a whole will become less correlated. Different sectors with their own fundamentals will have different price actions and expectations.

21.Ethereum won't flip Bitcoin, and Bitcoin won't reach $100,000.

If BTC reaches 100K - Inflation is beyond control and risk asset may come under a lot of pressure this may include our alt-coin bags

22.Venture Capital and CEX dominance in crypto will increase further.

Need more community-oriented and grass-root movements ( i.e movements initiated by @danielesesta)

Project doing DD or currently appearing undervalued

$NEAR
$ATOM
$MOVR
$OCT
$EVMOS - love their ambition

Check this podcast to learn why there might be plenty of gems coming from @cosmos

Happy 2022!