2021 proved to be a breakout year for web3 where we saw large adoption of crypto, the NFT market growing to an ungodly size, and communities banding together to bid on one of the 13 last surviving copies of the original United States Constitution.
It seems like this year will be another exciting year for web3 so here are a few of my predictions for 2022:
- The Ethereum 2.0 merge will take place end of Q1 — There has been a lot of meaningful innovations that have happened in the crypto space and Ethereum has been the top platform for where this has taken place. As part of the multi-phase rollout of Ethereum 2.0, one of the phases will allow for new features such as proof of state to be available. This will allow for miners to be replaced by validators and for staking to become a new asset. With these new features and a push for Ethereum 2.0, there will likely be a shift in the economics of Ethereum where it will become more of an asset, and deflation may occur.
- Wide L2 (Layer Two) adoption for Ethereum — Currently, the major complaint about Ethereum is that it’s too slow and expensive. As more L1 (Layer One) networks gain traction and L2 becomes larger, the space will start to bridge the layers and a cross between L1-L2 will occur. This L2 scaling looks to provide an optimal solution of improving speed by taking activities off the main Ethereum chain, placing them in a second environment to be processed, and then once the results of the activity are complete, sending them back to the main chain.
- Ethereum continues to outperform Bitcoin — This may feel like a no-brainer but this really isn’t something we can take for granted, especially if you’re new to the space. It’s completely possible for Ethereum to flip Bitcoin once more functionality is available, thus allowing for Ethereum to become the number one crypto based on market cap.
- Brands in the Metaverse — Many brands are realizing that NFTs are great tools for brand marketing and establishing brand loyalty. In 2022, we’re likely to see more interesting brand marketing initiatives using NFTs and more celebrities supporting projects to enhance their own personal brand.
Those are my top predictions for the web3 space for 2022. I’m excited to see what is in store for this year and can’t wait to see how everything plays out.
Life is golden.
— Adam D.