IGO Boom, Metaverse & NFT: What To Expect From The Cryptocurrency Industry In 2022

Discussions about the huge potential of web 3.0, the metaverse, and the future of NFT have been going on for the last couple of years. The industry of cryptocurrencies and blockchain has stepped so far forward that we could not even imagine a couple of years ago. The experts from Boosty Labs, a blockchain-development company that is engaged in Metaverse developmentrepresent the main trends of the industry that will be booming in 2022.

Wide application of NFTs

2022 will definitely be the year when the NFT finally consolidates its position. With the support of opinion leaders, as well as artists who are interested in the digitalization of their works, the development of NFT will move into a more public plane. For example, NFT can be used in the field of voting in presidential elections or registration of ownership of property.

Until the interest in NFT fades, we will see new examples of using and integrating technology into everyday life. And since, according to CoinMarketCap statistics, the market capitalization of the NFT market exceeds $ 20 billion, you should not think about a decline in the hype in the next couple of years.

2022 is the year of the metaverse

The term “metaverse” was introduced to the public as early as 1992 in the science fiction novel Avalanche by Neil Stevenson. The novel describes people as avatars interacting with each other and software agents in a 3D virtual world.

The concept of the metaverse was publicly introduced by the social network Facebook, but Microsoft has also recently joined this game. But Tesla has been developing Teslasuit for a long time in order to feel as vividly as possible what is happening in virtual reality. In this scenario, the creation of a metaverse by Apple is only a matter of time.

Global VR gaming revenue was over $ 180 billion in 2020, of which $ 40 billion is premium in-game spending. According to the Grayscale report, by 2025, thanks to in-game spending, the Metaverse sector will be able to gain about $ 400 billion. However, the Metaverse is not limited to this. According to the report, the sector’s potential revenue from social commerce, creator monetization, advertising, and digital events is estimated at more than $ 1 trillion.

In general, users of the web 3.0 metaverse can use their own digital currency, such as MANA (Decentraland) or SAND (The Sandbox).

IGO (Initial Game Offering) and Play-to-Earn

This trend has entered a new phase called earn-to-play or, more correctly, pay-to-play-to-earn. Thanks to play-to-earn, players have the opportunity to earn. This means that the model can be called a win-win, because the more the player earns, the more he can spend.

As technological progress is made and automation becomes an integral part of life, people have more free time for leisure.Gaming in this case is a great option that can completely replace activities in real life.

Under these conditions, earn-to-play attracts people with a banal fact – people get real value just by playing the game. Industry leaders such as Axie Infinity, The Sandbox or MANA (Decentraland) offer their own options for the game economy. In it, users receive NFTs as a reward and can subsequently sell them on an external marketplace.

In general, paid “skins” in Dota, Fortnite or Counter-strike games have been around for a long time. And the use of the play-to-earn model on the blockchain will definitely find its place in the market. Moreover, Axie Infinity, MANA and The Sandbox have become a prime example of how easily NFT can be integrated into this area. Therefore, we expect the IGO boom to take place in 2022, and we will see the emergence of dozens of new startups that easily attract huge investments.

The global industry of all gaming platforms (non-cryptocurrency) exceeds 2 billion people. For Generation Z around the world, games are becoming more than just a leisure activity, but rather a way to communicate with the outside world and express themselves. The capitalization of the top 10 coins of the play-to-earn market has grown from $ 288 million to $ 6.59 billion, although in 2020 few people have heard anything about this direction.

The popularity of gaming has also been boosted by the covid-19 epidemic: in the absence of offline entertainment, people of different generations are more likely to play virtual games. The research company NewZoo predicts the growth in sales of the global gaming market to $ 256 billion by the end of 2025.

STO, DeFi and DAO

The cryptocurrency market in 2021 has developed especially rapidly. Capitalization reached 3 trillion dollars and the big players can no longer afford to ignore this market. Interest from companies like Microstrategy, Tesla and Grayscale contributes to the development of the Security token offering sector, which will allow cryptocurrency to be traded along with shares on licensed exchanges and receive dividends.

The DeFi sector also did not stand still in 2021 and continues its development in the next. DeFi capitalization has grown to $ 156 billion, and the demand for a wide range of financial instruments in which there is no intermediary will definitely contribute to the further development of the direction.

2022 will also be the year of the DAO, a decentralized autonomous organization where there is no central node that manages the system without the consent of other participants. The system is controlled by a written program code, thereby excluding the influence of the human factor on the further operation of the system. The idea of ​​DAO was born back in 2016, but it was not until almost 5 years later that it was put to use. DAO is now actively used to manage cryptocurrency projects, but in 2022 we can see the first attempts at a more massive implementation of the technology. Issues requiring changes are put to a vote. And if the majority of community members are in favor, then the edits are accepted.Thus, DAO is the provision of a democratic model of interaction between project participants. To vote, you only need to have a certain share of management tokens.

2021 was full of pleasant surprises that contributed to the rapid development of the cryptocurrency industry. And in 2022, the speed of introducing new solutions and the emergence of new industries will triple. With strong support from institutional investors, it can be said that the industry is no longer afraid to try. And so mass adoption is only a matter of time.

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