The blockchain research firm Arcane Research has made its price predictions for the crypto market in 2022.
Bitcoin will surpass the S&P 500 by 2022
The report focuses on Bitcoin and Ethereum. In addition, it also focuses on other major coins, decentralized finance (DeFi), meme coins, non-replaceable tokens (NFT), and derivatives.
Arcane’s report shows that Bitcoin has outperformed the S&P 500 in 2021. The Bitcoin price is up 73%, while the S&P 500 is up 28% this year. Arcane believes Bitcoin will continue this feat next year. The S&P 500 index consists of the 500 largest companies listed on US stock exchanges.
Arcane also saw the huge gains of Binance Coin (BNB) this year. Binance Coin peaked at around 1600% in May and rounded out the year at 1344%. Based on this, the growth in market capitalization of altcoins like Solana and Terra and the NFT craze, the analysts argue that Ripple and Cardano will leave the top 10 list.
Ethereum outperformed Bitcoin this year with a gain of 455% from 73%. However, other layer-one blockchains outperformed Ethereum. Terra Luna ends 2021 with a 14.823% increase and Fantom is up 13.549%.
NFTs, EFTs and the hashrate
This year, the sale of NFTs and blockchain games such as Splinterlands and Alien Worlds played a major role in the crypto world. According to DappRadar, the games have about 526,000 daily active users. Arcane predicts that traditional gaming brands will target the NFT world in 2022 and take advantage of the rapidly growing market.
Coinbase went public on April 14 of this year. Currently, the exchange has a market cap of $72 billion. The top five crypto company listings to come in 2022 are all currently worth more than $1 billion. Arcane believes there will be several others worth more than $5 billion. An example of this is crypto exchange Bullish, which is currently valued at $9 billion.
Also, several Bitcoin futures exchange-traded funds (ETF) were launched in 2021. They currently hold approximately 846,309 Bitcoin together, and Arcane says the growth will continue into 2022.
The shift of the Bitcoin hash rate
When China banned Bitcoin mining, the global Bitcoin hash rate dropped sharply. However, it recovered almost as quickly after that. Now the United States leads the global hash rate, followed by Kazakhstan and Russia. Arcane believes crypto miners will spread even further in regions such as Latin America.