Original source: Jump Capital
Compilation of the original text: Bitui BitpushNews
According to the news, Peter Johnson, a partner of the investment company Jump Capital, said that 2022 will be another important year for encryption, and the overall theme is widespread adoption, including the widespread adoption of stablecoins, DAOs, high-speed chains, L2 and cross-chain applications. As crypto becomes more widely accepted, traditional companies and investors will adapt to a future where crypto is embedded in every industry and most investors participate in the crypto market in some way.
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Theme 1: Stablecoins lead crypto growth
1. Stablecoin supply hits $500 billion
At Jump Capital, we have long been firm believers in stablecoin adoption and have included stablecoin growth in both our 2020 and 2021 forecasts, when stablecoin supply was ~$6 billion and ~$30 billion, respectively. With a supply now over $140 billion, we have yet to see signs of a slowdown in stablecoin adoption and believe there will eventually be trillions of dollars in stablecoins.
In 2022, we are particularly excited about the growth of stablecoins for non-transactional use cases. Historically, stablecoins have been used primarily for transactions, but 2022 will be the year when their use for cross-border payments and as a safe-haven asset for countries with unstable currencies becomes more visible and a bigger growth driver.
2. USDC, UST take market share from Tether
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Topic 2: Development of DAOs and DAO infrastructure
1. DAOs are exponentially growing as coordination tools
Decentralized Autonomous Organizations (DAOs) enable global coordination of individuals using blockchain-based governance. DAOs can be used for many purposes, including managing the operations and capital of blockchain projects (MakerDAO), managing investment capital (The LAO), managing usage of game assets (YGG DAO), coordinating cultural circles (Friends With Benefits) or coordinating assets Purchase (Constitution DAO).
We believe that Constitution DAO is a watershed moment for DAOs, as it has raised over $40 million, demonstrating the ability of thousands of people to coordinate their funds and efforts towards a common goal. By 2022, we believe DAOs will gain massive traction as the next generation of ways to coordinate global investments and communities. Trying to buy a copy of the U.S. Constitution is just the beginning; in 2022, there will be multiple DAO financings of more than $100 million, and they will have their eyes on the bigger goal.
2. DAO governance design and infrastructure are mature
As crypto networks have been iterating on governance models to govern network decisions and communities, we are in the early stages of defining and agreeing on the full scope of a DAO.
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Theme 3: High-speed chains, L2 and cross-chain applications drive broad adoption
1. High-speed chain continues to grow and L2 takes off
2021 saw the early launch of high-speed/low-cost blockchains like Solana, Terra, and Avalanche, Ethereum sidechains like Polygon, and Ethereum L2 scaling solutions using Optimistic and Zk rollups.
We are bullish on all of these solutions, as transactions are increasingly migrating from L1 Ethereum and growing exponentially"cake"Creates room for a variety of winners (at least in the short term). These high-speed chains and L2-enhanced user experience are a key part of achieving mainstream adoption and will be a key part of the cryptocurrency narrative in 2022. Ultimately, winners (and losers) will be decided, but in 2022 we're betting on strong growth across the board.
2. Cross-chain use becomes seamless
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Theme 4: Every (innovative) company is a crypto company
1. Financial Institutions, Advisors and FinTechs Offer Crypto Products
Cryptocurrencies have finally become too big for financial institutions, financial advisors and traditional fintech firms to ignore, and 2022 will be the year of launching crypto products to clients. Allowing the buying and selling of cryptocurrencies will be table stakes, with more forward-looking companies offering cryptocurrency-backed loans, high-yield savings accounts, and other products that leverage cryptocurrencies.
As more financial institutions offer crypto products, we also expect product offerings to mature and are particularly bullish on the growth of the options market, which allow market participants to take more granular hedging or speculative positions and are used to create structured products . Options currently account for less than 2% of crypto derivatives trading volume, and we expect this to grow significantly in 2022.
2. Game studios go all-in on embracing encryption
2021 has seen the rise of crypto-based “play and earn” games led by Axie Infinity, where players can earn real economic value from their gaming activity. The success of Axie and other blockchain-based games has resulted in a plethora of crypto games—many of which are mediocre games that are unlikely to have staying power.
However, we believe that the concept of a game that enables true ownership will be the foundation of the future of gaming. In 2022, we expect traditional game studios to enter the crypto gaming space, launching a new generation of crypto games that offer not only financial incentives and true ownership, but also best-in-class gameplay.
3. Crypto begins to eat the world
Early adopters of the Internet were referred to as "Internet companies" or "Internet companies," but as Internet adoption spanned the adoption cycle, those monikers fell out of use.
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Topic 5: Every VC is an encrypted VC
1. A record amount of VC funding has been deployed into cryptocurrencies
In the first nine months of 2021, crypto startups invested $15 billion, which is nearly 5 times the total investment in crypto startups in 2020. That may seem like a lot, but it was only about 3% of total VC funding during this period.
In 2022, we expect a significant increase in venture capital investing in crypto, as traditional VC funds are both eager to allocate to crypto-native projects and attracted by the convergence of crypto and various other industries. The increase in crypto venture capital funding will also be driven by multiple recently announced crypto funds exceeding $1 billion, with more crypto funds to be announced soon. In this capital-laden industry, the most successful investors will go beyond just funding to help build products, provide liquidity, recruit talent, scale organizations, grow communities, engage users, and participate in governance.
