KuCoin Labs: Metaverse and DeFi Integration Will Be a Major Highlight in 2022

KuCoin Labs has analyzed the data and crunched the numbers to find a comprehensive overview of the crypto trends of 2021. The team has also made some exciting predictions about what 2022 will bring for this ever-evolving industry.


VICTORIA, Seychelles — The year 2021 was an exciting year for the cryptocurrency and blockchain industry. Cryptocurrencies like Bitcoin and Ethereum set a new record last year. According to Wind’s data on the return of major assets, Bitcoin is the best-performing major and/or alternative assets of 2021, with a 72% year-to-year growth rate, surpassing crude oil and natural gas. Digital assets are disrupting the entire financial market and Bitcoin is just a microcosm of it. The asset’s performance brought more attention to the crypto and blockchain industry, resulting in

an explosive increase in the number of users and the influx of cash. The KuCoin Labs report clearly states that there have been some exciting trends in various industry segments, including:

  • Memecoin of the year 2021, Doge and Shiba Inu are to be mentioned, who are ramping up their profits due to the wave of “Tweet Wars” waged by their proponents in the media space.
  • Infrastructure Trends: The year has seen a significant number of developments in blockchain space with the Ethereum London upgrade, TVL on Layer 1 vs. Layer 2, node distribution for top blockchains, gas usage, etc. Ethereum TVL is still by far the largest, followed by BSC, Avalanche and Solana. New solutions are being introduced that increase the ease of use of the network and try to lower gas prices. In 2022, it will continue to scale and launch upgrades in the Ethereum network, as well as rapidly popularize competitors like Solana as industry anchors.
  • The growth and performance of cross-chain bridges has largely focused on the BTC and ETH networks and became passive instruments in the face of poor development traction and other inefficiencies. It is likely that similar progress will be made in 2022 in cross-chain development, as well as the general adoption of such solutions at a logical level in large ecosystems.
  • NFTs and the Metaverse: The NFT and metaverse markets took center stage in 2021, eventually merging with DeFi and the gaming industry to create a create a comprehensive ecosystem that empowers users and gives them the reins of trading and releasing digital assets. With the metaverse as the main main hub of NFT activity, 2022 is expected to be the year of the introduction of groundbreaking user identification solutions in the decentralized space and the deployment of various support systems for full integration with DeFi.
  • DeFi trends and industry overview: The DeFi market continued to evolve in 2021, serving as the entry point for regulators’ access to the decentralized environment. With the number of new protocols growing and established protocols strengthening their position, 2022 is likely to see the development of Web 3.0 and other innovative solutions that can absorb DeFi space and make it more accessible to a new audience of users.
  • DAOs were deployed through various protocols throughout 2021 and are supported by influencers. Not all DAOs have been successful, but their underlying operating principles are solid enough to be used as a foundation for the creation of legal entities. 2022 will likely not be a breakthrough in DAO expansion, but rather the refinement of their mechanisms that could pave the way for future adoption at the corporate or company level.
  • Crypto industry incidents and security: In 2021, there were many cases of fraud and security breaches, especially in the DeFi sector, which led the first half of the year. With over $610 million stolen in just one hack, the total amount lost during the year counts in the billions of dollars. And while security measures are being refined with the inclusion of asset insurance audits and protocols, 2022 is sure to witness a similar amount of fraud and theft of funds.
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Many of these topics have received mainstream media attention in 2021. The rising popularity of NFTs, DAO firms trying to buy a copy of the Constitution, and Facebook’s rebranding to Meta to explore the possibilities of Metaverse are just a few examples of how cryptocurrency and blockchain are seeping into everyday life.

Now that 2022 has entered, KuCoin Labs is looking at what this year will bring for the industry. Will there be more excitement, or will regulators react aggressively? Is the NFT trend coming to an end or is this just the beginning of a global multi-year trend? Can existing bottlenecks in the cryptocurrency and blockchain space finally be addressed?

“KuCoin Labs is taking on its role in advancing the development of the entire crypto industry. We incubate and invest in innovative projects, guiding their development to maturity where they can bring the best of crypto. As one of the best investment funds, the KuCoin Labs team gathers professional research on a forward-looking journey, relentlessly diving deep into every aspect and detail. KuCoin Labs aims to be an integral force in building the future of Web 3.0.” Said Lou Yu, head of KuCoin Labs.

The forecasts hit on some interesting points that can’t be overlooked by anyone, even remotely with the industry. First, KuCoin Labs recognizes that financial institutions remain crucial to take the blockchain and cryptocurrency to the next level.

In addition, more companies set up Bitcoin treasuries in 2021, even though BTC has plunged nearly 50% from its all-time high. KuCoin Labs expects more institutions to be transparent about their Bitcoin purchases, although they do not necessarily acquire BTC directly.

The focus on Layer 1 and decentralized finance is likely to continue into 2022. There is a lot of room for further progress, be it scalability for Layer 1 or more complex and rewarding DeFi protocols. Other trends to watch out for are:

  • NFTs
  • GameFi
  • DAOs
  • SocialFi
  • MetaFi
  • Regulation
  • And much more

It’s going to be another busy year for the blockchain and cryptocurrency industry. For the full report, please contact [email protected].


About KuCoin Labs

Founded in May 2018, KuCoin Labs is the investment and research force of the KuCoin ecosystem. KuCoin Labs is diversifying and intensifying investment in early stage projects to help more builders achieve sustainable growth and success in the decentralized world. KuCoin Labs now owns a portfolio of more than 50 projects, including Arweave, MultiVAC, CertiK, OneLedger, LUKSO and Ankr, across industries such as Infrastructure, DeFi and NFT. In April 2021, KuCoin Labs launched a $50 million fund to find the following crypto gems, in November 2021, KuCoin Labs launched a $100 million fund to strengthen the metaverse ecosystem and other innovative projects, aiming to develop of the underlying infrastructure by investing and incubating projects at an early stage.


About KuCoin

Launched in September 2017, KuCoin is a global cryptocurrency exchange for more than 640 digital assets. It currently offers spot trading, margin trading, P2P fiat trading, futures trading, staking and lending to its 10 million users in 207 countries and regions around the world. In 2018, KuCoin raised $20 million in Round A funding from IDG Capital and Matrix Partners. According to CoinMarketCap, KuCoin is currently the fifth largest crypto exchange. Forbes also named KuCoin as one of the best crypto exchanges from 2021.

For more information, visit https://www.kucoin.com/nl

Contact:
Ashley Wang
[email protected]

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