2021 has been a roller coaster for the cryptocurrency industry and Arcane Research expects more intriguing developments in 2022
Even though the year proved to be a defining moment for Bitcoin, he found himself sidelined when the impressive rally came to an end recently. At the same time, many altcoins, some previously obscure, surfaced, including memecoins. However, Arcane Research has outlined possible changes in the coming year, which could turn the tide.
Arcane Research correctly observes in its report Most recently, 2021 was a year of ups and downs, but mostly ups. For example, Bitcoin outperformed the stock market and gold despite going through an incredibly volatile year.
However, altcoins like Binance Coin inevitably stole the show, as BNB emerged as the top performer of the top three cryptocurrencies by market capitalization, making gains of over 1,300%. It wasn’t just BNB that crushed the market leader.
With a 455% increase, Ethereum significantly outperformed bitcoin relative to price performance. As the cryptanalytics and research firm noted, 2021 was a long altcoin season and the year for Tier 1.
However, one of the boldest predictions made by Arcane for next year is that Ripple (XRP) and Cardano (ADA) could fall outside the top 10 rankings. The once third-biggest crypto by market value, XRP, has fallen from its leadership position, in part because of Ripple-SEC’s ongoing dispute.
Cardano, on the other hand, has shown immense potential due to significant updates. Its increase, however, paused and proved to be almost unimpressive in the fourth quarter.
Emerging Layer 1
Tier 1 networks such as Solana, Avalanche, Terra Luna, Fantom and Harmony have gained traction, stripping Ethereum from its undisputed position as the DeFi leader.
The superior performance of these networks is expected to continue into next year, according to Arcane, and these smart contract platforms will continue to abstract users as well as funds from the Ethereum ecosystem. Therefore, an increase in the price of their respective native tokens in 2022 would also not be surprising.
The internet is a strange place, but the cryptocurrency space is even stranger. The year saw most of the original and bizarre alts in incredible rallies. Although Bitcoin demonstrated massive strength, market sentiment shifted from extreme greed to fear.
As a result, investors turned to altcoin rotation. Thanks to Elon Musk, “The Technoking of Tesla”, Dogecoin, the meme coin OG finally found credit. Wrapped in his coat, several canine-themed tokens appeared. One that stood out and narrowly changed Musk’s favorite was – Shiba Inu (SHIB). And despite the lack of stronger narratives, capital continued to drip these joke coins.
However, that could change. Arcane noted that most of these tokens will eventually “fading into obscurity, being a historical relic from the absurd times of 2021“.