Research by Huobi shows a lower-performing Bitcoin in 2022, while DeFi and DAO governance is projected to widen its market.
Federal Reserve and the central banks’ tightened liquidity measures underpin Huobi’s take on the primary digital asset.
Huobi reports that DeFi 2.0 would emerge in 2022 as the sector witnessed exponential growth, rising from $19 billion in January last year to $250 billion at the close of 2021.
The study shows that cryptocurrencies had a turning point in 2021 when the tokens in most categories reached an all-time high.
Web 3 and metaverse also gained momentum as 40 countries rushed to streamline the sector with 150 different legislations.
The Federal Reserve’s tapering in 2013 caused a two-year bearish market, which is believed to be a possibility despite the market transforming over the years.
Bitcoin has dropped about 7.9% in the past day to a price of $38,788 in a crypto-wide rout that saw altcoins also register a significant drop.
Source: Huobi Research