Venture Capital Institutions Forecast in 2022: Stable Coins Reach US$500 Billion More Institutions Provide Products

Peter Johnson, a partner at Jump Capital, a venture capital firm, yesterday published his five predictions for the 2022 crypto industry. At the end of last year, he also published his predictions for 2021, including Bitcoin reaching the standard of 50,000, the U.S. through Bitcoin ETF, and DeFi. The vigorous development of the industry and so on. And what are his predictions and explanations this year?
Peter Johnson's top five predictions

1. Stable coins lead the growth of the crypto industry, with a supply reaching 500 billion US dollars

The adoption of stablecoins in 2020 and 2021 continues to grow, and there is no sign of slowing down. The total supply now exceeds 140 billion U.S. dollars, and it is believed that the future supply will reach several trillion U.S. dollars.

The increase in the use of stablecoins in 2022 will not come from trading and investment purposes as in the past, but mainly for cross-border payments and as a safe-haven asset for countries with unstable currency values. In addition, USDC and UST will seize more market share from USDT, which are centralized and decentralized stablecoins with huge market dominance, respectively.

2. Exponential growth of DAO and DAO infrastructure

DAO can be used for many purposes, including managing the operating and capital of blockchain projects (MakerDAO), managing investment capital (The LAO), managing the use of game assets (YGG DAO), coordinating cultural groups (Friends With Benefits) or cooperation Purchase assets (ConstitutionDAO).

ConstitutionDAO is like a watershed, raising $40 million from thousands of people and working towards a consistent goal. But they are just the beginning. There will be more DAO financing of more than 100 million US dollars in 2022, and focus on more goals. In addition, the governance design and infrastructure of DAOs will gradually mature in order to effectively manage these DAOs.

3. Chains with fast transaction speeds, Layer 2 networks and cross-chain applications will be more widely adopted

In 2021, more and more transactions will be migrated from Ethereum. Fast and low-cost blockchains such as Solana, Terra and Avalanche, Layer2 expansion solutions and Polygon side chains will continue to grow more comprehensively in 2022.

Currently, the Layer1 and Layer2 blockchain ecosystems are quite isolated, but in 2022, cross-chain applications like Wormhole will make great progress in seamless movement of assets and information between blockchains.

4. Every start-up company is an encryption company, financial institutions, consultants and technology companies provide encryption products

The scale of the encryption industry will be too large to be ignored, and these traditional financial industries will not be able to ignore it. 2022 will be the year they will launch encrypted products. In addition, the proportion of options in the trading volume of derivatives will increase significantly.

At present, there are more and more chain games on the market, but most of them are P2E, but the gameplay is poor and can not get good results. However, the concept of giving players real ownership of items in the game will become the basis of future games. It is expected that more traditional game studios will enter the encryption industry in 2022, launching games that combine the above concepts and are highly playable.

In addition, over time, most companies will begin to adopt encryption technology in some way, such as by providing encrypted products, using stablecoins as payment channels, supporting Web3 wallet login, the use of NFTs, or owning and tokens Use the combined community, etc.

5. The amount of venture capital companies investing in crypto startups has risen

The amount invested in crypto startups in the first nine months of 2021 is US$15 billion, which is about five times that of last year. But this amount only accounts for about 3% of the investment of venture capital institutions.

In 2022, the amount of investment will increase sharply, and traditional venture capital institutions will allocate more proportions to encrypted native projects and have more integration in various industries.