Jump Capital partners forecast developments…

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Stablecoins will become the crypto industry leader next year, the expert said.

Peter Johnson, partner of American investment firm Jump Capital, shared his forecast for the development of the crypto industry in the next year with the portal TheBlock.

According to him, the main themes for 2022 will be the adoption of stablecoins, decentralized autonomous organizations (DAOs), high-speed blockchains, second-tier solutions, and cross-chain applications.

“Traditional companies and investors will adapt, opening up a future where crypto is embedded across a wide range of industries and most investors will take part in the crypto market,” Johnson said.


Stablecoins will lead the growth of the cryptocurrency market, the expert said. According to him, the supply of tokens pegged to fiat currencies will reach $500 billion by the end of next year.

“We see no signs of slowing stablecoin adoption,” Johnson said.

He also said that the use of stablecoins for cross-border payments and as assets to store wealth in countries with volatile currencies will flourish by 2022. In particular, Tether has recently become Myanmar’s official currency.

Recall that the supply of stablecoins on the digital asset market in 2021 grew by 388% and reached $150 billion. For comparison, at the beginning of the year this figure was at the level of $29 billion.

Among all the stablecoins, Jump Capital analysts chose USDC and UST. In their opinion, this token is taking market share from Tether. It should be noted that at the beginning of the week, the UST token capitalization of the Terra blockchain network reached $10 billion.

Decentralized Autonomous Organization (DAO)

DAO provides blockchain-based global coordination of individuals. A DAO can help manage blockchain project operations and capital (MakerDAO), manage capital for investment (LAO) or use of gaming assets (YGG DAO), coordinate cultural groups, or purchase assets (Constitution DAO).

According to Johnson, by 2022, decentralized autonomous organizations will become a popular way to coordinate global investments and next-generation communities. In the next year, many crypto networks will achieve a high degree of decentralization and will be managed more efficiently.

High speed blockchain and second level solution

In 2021, fast and cheap blockchains Solana, Terra and Avalanche appear. Jump Capital experts are “optimistic” about the network. According to them, the market is growing “at an exponential rate”, which creates room for “multiple winners”. Their mass distribution depends on improving the user interface, according to the investment firm.

“Currently, L1 and L2 blockchain ecosystems are quite isolated, and communication between ecosystems is often complex or dependent on centralized exchanges. By 2022, solutions like Wormhole will make tremendous strides in ensuring the smooth movement of assets and information across the blockchain, and applications will seamlessly funnel transactions to the best blockchains to achieve their goals,” said Jump Capital.

Crypto products in fintech

Crypto services will be a competitive advantage in financial markets by 2022, Johnson said. In particular, analysts bet on crypto options, which currently account for less than 2% of the volume of crypto derivatives. They predict this figure will increase significantly by 2022.

Recall that recently the American fintech provider Fiserv integrated the Bakkt crypto service into its platform. Crypto Products started offering PayPal payments company and Australia’s largest CBA bank.

Read also: all banks will soon think about cryptocurrency trading, said former Citigroup CEO.

The concept of earning in-game cryptocurrency will be fundamental to the future of gaming, analysts say. According to them, traditional game studios will enter the cryptogaming sector in 2022.

Venture investment in crypto companies

In 2021, crypto companies attracted a record amount of venture capital funding – $25.1 billion, which is more than 8 times higher than in 2020. However, this figure is only about 3% of the total volume of venture capital funding, which is calculated in Jump Capital .

Analysts expect venture capital flows to the crypto industry to increase next year. This is due to the increasing interest of traditional venture funds in crypto projects, as well as the convergence of the crypto industry to other industries.

As a reminder, two big crypto funds appeared in November. Venture capital firm Paradigm has created the largest crypto venture fund in history with $2.5 billion. And former Citigroup CEO Matt Zhang launched a $1.5 billion crypto venture fund. According to Jump Capital, several more crypto funds will be announced in the near future.

Read also: institutional crypto custodians withdrew more than $3 billion in investment in 2021.

Analysts, led by Peter Johnson, expect active crypto adoption across many industries. According to them, this trend will increase in the coming years.

We will remind, this week cryptanalyst Lark Davis said that “bitcoin is the simplest way to increase investment volume 20 times by 2030”.

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