The latest crypto trends show a bright future ahead, from rising institutional adoption to clear and straightforward regulations targeting digital assets.
Discover the top 10 crypto trends in 2022 in our new guide and how to position yourself to take advantage of the future of crypto in the next few years!
What is the latest trend in crypto?
The most influential recent trend affecting crypto is the upcoming regulations targeting cryptocurrencies, crypto operators, DeFi, stablecoins, and other aspects of digital assets amid a global effort to safeguard crypto activity.
Discover the top 10 crypto trends we’ll see in 2022 and the next 5 years.
1. Upcoming crypto regulation worldwide
From the US to the European Union, there is a global effort from the major economies worldwide to create new, clear, and coherent frameworks for crypto.
New regulations will primarily bring more investor protection while creating clear boundaries and scope of activities for crypto providers, especially for centralized exchanges, DeFi protocols, or stablecoins.
The White House, the SEC, the EU, and others are working to establish rules that can be coherent across countries and be used as a benchmark for other countries.
As a crypto tax software, we are committed to improve the data security and privacy of our customers and are in favour of clear rules for the industry. Learn more about our approach from this interview.
2. Moving for crypto taxes will be crucial
With the rise of new crypto regulations, countries are not leaving any loopholes regarding crypto taxes. Currently, some countries don’t tax crypto or have low tax rates.
With the global effort of a minimum tax rate and the introduction of more regulations, more people will move to crypto-friendly countries.
3. Crypto’s institutional adoption will rise
With clear regulations, institutions will flock to crypto. From banks to financial institutions and corporations, institutional adoption will rise.
A few examples of crypto’s institutional adoption:
- More companies will introduce blockchain technology in their processes and products;
- Corporations will launch more decentralized products;
- Banks and financial institutions will offer a myriad of investing products around crypto;
- Regulators will approve several products from crypto companies and traditional institutions (e.g., crypto ETFs)
- Companies of every size will invest in crypto
- Countries will have reserves in BTC
4. Banking mingles with crypto
In line with the rising institutional adoption, the banking world will mingle with the crypto industry.
Banks will offer many products for an audience wanting to diversify with crypto assets. Meanwhile, decentralized products will affect the entire banking infrastructure to offer more power and options to people.
5. Web 3 takes over
Many of the Web 2 monopolies will lose influence to new decentralized players.
Web 3 infrastructure will influence areas like search, music, or video, increasingly becoming more popular and easy to use while offering more privacy, financial opportunities, and flexibility for people.
Think of using the Web 3 versions of Instagram, Youtube, Spotify, or Google.
6. DeFi and DApps become easy to use
The rise of decentralized products will only come when the usability of the crypto industry is resolved.
Currently, crypto and DeFi apps are difficult to use. Many have complex terms used in marketing, and the entire flow of the products seems targeted at developers or experienced crypto users.
In the future, DApps will become much simpler for a mainstream audience while offering a clear value proposition for people.
7. Interoperability in all things crypto
Mainstream adoption of DeFi and DApps will come when the industry solves one of its biggest challenges: Interoperability.
Interoperability means the ability for different apps to seamlessly work with each other and offer a simple interface for users despite the complex systems operating under the hood.
Web 3 and crypto infrastructure providers are tackling this issue to facilitate the transition to the decentralized world.
8. Tokenization covers most industries
Tokenization will invade every industry to offer people a way to invest across assets, from art to real estate.
Tokenization through institutional platforms or with the use of NFTs will rise and offer more financial opportunities for a wide range of investors.
9. Stablecoins get regulated
With the global efforts for regulations, stablecoins will be one of the main targets. Stablecoins are some of the assets with the largest issuance in crypto and serve as the entrance point for investing in it.
With the recent Luna collapse, the issuance of stablecoins will be closely watched and likely incorporated into the traditional infrastructure as much as possible.
Despite the tougher capital controls and issuance architecture, stablecoins will continue to have significant importance in the crypto industry.
10. CBDCs get implemented
In line with increased oversight on stablecoins, Central Banks worldwide will finally launch their Central Bank Digital Currencies (CBDCs).
From the digital yuan to the digital dollar and euro, CBDCs will become mainstream, with governments imposing their use and replacing cash in the long term.
CBDCs will be one of the major cryptocurrency trends in the next few years.
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Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.