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
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!

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Mehdi Farooq

Mehdi Farooq Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @MehdiFarooq2

11 Jan
Covering $AVAX next for my deep-dive, Winner of the poll as well.

Small teaser 👇
Valuation is on the cheaper side. ImageImage
Onchain metrics are strong. ImageImage
Read 7 tweets
7 Dec 21
My gaming thesis for the long run 🧵
The financialization of gaming via NFTs and crypto will become a prerequisite.

Gamers have already started asking why they weren't always owning their in-game assets?

Financialization of gaming assets and enjoyment will be so crucial that >80% of games will have this.
The irony of the situation is that having NFTs, crypto, or P2E mechanics of the game wouldn't be enough.

I believe in LR just P2E mechanics are not enough. Games can use their inflationary token emission to bootstrap networks but it's akin to poor DeFi protocol with high APY.
Read 9 tweets
3 Aug 21
A 🧵on $DOT Investment Thesis and Valuation 👇

You can watch my detailed primer on @Polkadot

A detailed walkthrough of my investment thesis, valuation, and price prediction
Investment Thesis

💪Can be thought of as an ETH 2.0 Hedge ( delays in ETH 2.0 Road map) and a Put Option (captures user base and developers from the ETH community)
💪Highly Scalable – Can process up to 1 million transactions vs 15 currently for ETH and 10K for ETH 2.0

cont...
🚀Broadest type of interoperability ( multiple blockchains and bridges can communicate with each other)
🚀Highly customizable and developer-friendly. Substrate makes it easier for developers to create custom blockchains for bespoke products (DeFi,NFT,Privacy,Gaming etc).
Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(