Market Analysis Report (19 Jan 2022)

CryptoCompare’s Outlook Report explores the key digital asset trends that we expect to see in 2022; covering Institutional adoption, exchange trends, DeFi, NFTs, Web3 and more. It also examines the current macroeconomic environment to distinguish if rising inflation could prove beneficial for digital assets such as Bitcoin.

One of the largest opportunities for cryptocurrencies in the coming years remains the continued entrance of institutional investors, with each regulatory triumph crypto achieves moving the industry closer to this largely untapped market.

The dominance of Bitcoin-based products has fallen notably this year – from 74.9% in January 2021, to 67.8% of total AUM by year-end. Institutional investors are shifting their attention towards other cryptocurrencies, while VCs and other allocators of capital are flooding into the industry in search of promising projects.

In 2021, the DeFi landscape changed dramatically – TVL grew over 10x to $244bn, and while Ethereum remains the leader in the sector, its dominance has faded to 62.8% of the market.

Read CryptoCompare’s report to find out more.

Source: https://www.cryptocompare.com/email-updates/daily/2022/jan/19/