{"id":3138,"date":"2022-01-26T14:08:20","date_gmt":"2022-01-26T14:08:20","guid":{"rendered":"https:\/\/xcoins.com\/?p=3138"},"modified":"2023-09-15T10:18:24","modified_gmt":"2023-09-15T10:18:24","slug":"how-high-could-crypto-go-in-2022","status":"publish","type":"post","link":"https:\/\/xcoins.com\/en\/blog\/how-high-could-crypto-go-in-2022\/","title":{"rendered":"How High Could Crypto Go in 2022?"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Despite high turbulence, zoom out and cryptocurrency appears to be growing exponentially. How much higher can the market go?\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The crypto market reached dizzying heights in the last year. In 2021, coins such as <\/span><a href=\"\/en\/buy-crypto\/bitcoin\/\"><span style=\"font-weight: 400;\">Bitcoin<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"\/en\/buy-crypto\/ethereum\/\"><span style=\"font-weight: 400;\">Ethereum<\/span><\/a><span style=\"font-weight: 400;\"> hit record highs and we saw the explosion of NFTs as cryptographic assets continue to grow in popularity. While the market has recently seen a significant correction, the recent all-time highs prompted some analysts, investors and spectators to ask, how high can crypto go?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This question was explored by Messari in its highly-anticipated <\/span><a href=\"https:\/\/messari.io\/pdf\/messari-report-crypto-theses-for-2022.pdf\"><span style=\"font-weight: 400;\">Crypto Theses for 2022<\/span><\/a><span style=\"font-weight: 400;\"> report. The report outlines some of the key trends to look out for this upcoming year and dissects potential growth opportunities for crypto in the short and long term. We\u2019ve broken down the predictions and what they mean for the future of crypto.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Messari report analyzes the biggest trends to keep an eye on this year but importantly, also looks at where we currently are in the <\/span><a href=\"https:\/\/xcoins.com\/en\/blog\/the-four-phases-of-the-bitcoin-market-cycle\/\"><span style=\"font-weight: 400;\">crypto market cycle<\/span><\/a><span style=\"font-weight: 400;\">, and how much more growth could be in store. Here are a few of the key takeaways:<\/span><\/p>\n<h2><b>How high can Bitcoin go?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It&#8217;s become quite clear in recent years that Bitcoin stands alone in the cryptocurrency market. It has a unique value proposition due to its scarcity, it\u2019s unique history, and, much like <a href=\"https:\/\/xcoins.com\/en\/blog\/why-gold-was-the-global-asset-of-choice-throughout-history-and-why-thats-changing\/\">gold<\/a>, it\u2019s priced as an asset rather than valued. However, a Bitcoin metric that\u2019s worth keeping an eye on is <a href=\"https:\/\/www.blockchain.com\/explorer\/charts\/mvrv\" target=\"_blank\" rel=\"noopener\">MVRV<\/a> (market-value-to-realized-value). It compares an asset\u2019s <\/span><a href=\"https:\/\/xcoins.com\/en\/blog\/what-is-market-capitalization-in-crypto\/\"><span style=\"font-weight: 400;\">market capitalization<\/span><\/a><span style=\"font-weight: 400;\"> to its realized capitalization so can be helpful in identifying when an asset\u2019s price dips below or exceeds its fair value.<\/span><\/p>\n<figure id=\"attachment_3141\" aria-describedby=\"caption-attachment-3141\" style=\"width: 640px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-3141 size-large\" src=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-1024x570.png\" alt=\"A blue chart showing Bitcoin\u2019s MVRV ratio from 2010 to 2022, in front of a white background.\" width=\"640\" height=\"356\" srcset=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-1024x570.png 1024w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-300x167.png 300w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-768x428.png 768w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-1536x855.png 1536w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/mvtrv-2048x1141.png 2048w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-3141\" class=\"wp-caption-text\"><em>MVRV is a useful metric that factors in the flow of a coin, as well as its price (Source: Blockchain.com).<\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Historically, Bitcoin hitting an MVRV of 3 has indicated a top is approaching and signaled a good time for investors to withdraw profits. If we were to see an MVRV of 3 or above this year, that could take Bitcoin\u2019s price to around $100,000-125,000.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of its long-term goals, Bitcoin\u2019s next big achievement would be to reach the market cap of gold which is $11.4 trillion, while Bitcoin\u2019s is currently $<\/span><span style=\"font-weight: 400;\">691<\/span><span style=\"font-weight: 400;\"> billion. Achieving this feat would take the price of one Bitcoin to approximately $500,000 and would help to solidify it as a store of wealth in the minds of skeptics.<\/span><\/p>\n<h2><b>How high can Ethereum go?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There have been discussions for several years about whether Ethereum\u2019s market cap could overtake Bitcoin\u2019s. On 10 November 2021, we saw Ethereum hit its all-time high of $4,850, but it\u2019s still a long way away from Bitcoin\u2019s all-time high above $68,000, set on the same day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum\u2019s infrastructural challenges and the move towards multi-chain solutions have made a flippening seem unlikely anytime soon but it\u2019s still a key token to watch. If Ethereum can successfully iron out its problems, there could be huge growth for Ethereum still to come.<\/span><\/p>\n<h2><strong>Ethereum rivals may be risky bets<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While Ethereum is still about a year away from actualising its major Ethereum 2.0 upgrade (now rebranded the \u201c<\/span><a href=\"https:\/\/decrypt.co\/91149\/ethereum-foundation-kills-eth-2-consensus-layer-rebrand?utm_source=tldrnewsletter\"><span style=\"font-weight: 400;\">Consensus Layer<\/span><\/a><span style=\"font-weight: 400;\">\u201d), a flurry of competitor protocols has emerged, gaining significant traction and threatening Ethereum\u2019s supremacy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cryptocurrencies such as Solana and Avalanche have been tapped as \u201cEthereum killers\u201d for their newer technologies. Their future value and dominance heavily rely on how they\u2019re developed but it\u2019s evident that these alternatives will likely play a part in a multi-chain future. That said, these new coins come with significant risks. For example. Solana\u2019s network was down for 48 hours this week, it&#8217;s the second failure in recent months, the outages saw the price of the coin plummet.<\/span><\/p>\n<figure id=\"attachment_3145\" aria-describedby=\"caption-attachment-3145\" style=\"width: 1500px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-3145 size-full\" src=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/defi-2.jpg\" alt=\"A person holding their hand out and a 3D image of the different features of DeFi in the palm of their hand, in front of a blue background. \" width=\"1500\" height=\"754\" srcset=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/defi-2.jpg 1500w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/defi-2-300x151.jpg 300w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/defi-2-1024x515.jpg 1024w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/defi-2-768x386.jpg 768w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><figcaption id=\"caption-attachment-3145\" class=\"wp-caption-text\"><em>DeFi is an area of the crypto market that has garnered a lot of attention in recent years.<\/em><\/figcaption><\/figure>\n<h2><strong>How far can DeFi grow?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"\/en\/blog\/what-is-all-the-hype-about-defi\/\"><span style=\"font-weight: 400;\">DeFi<\/span><\/a><span style=\"font-weight: 400;\"> market saw incredible growth in 2020 and 2021. According to the Messari report, its current value is \u201cless than 1% of the global banks\u2019 market cap\u201d, which indicates a lot of room for future growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, there are still issues that need to be worked out within DeFi, including impending financial regulation and excessive gas fees on the Ethereum network. There are undoubtedly worthwhile investment opportunities through DeFi but it\u2019s not without its risks.<\/span><\/p>\n<h2><strong>Are NFTs here to stay?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you pay attention to crypto or not, it\u2019s more than likely that you heard about <\/span><a href=\"\/en\/blog\/nfts-what-are-they-and-why-are-they-so-popular\/\"><span style=\"font-weight: 400;\">NFTs<\/span><\/a><span style=\"font-weight: 400;\"> in 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The NFT sector exploded last year and it\u2019s estimated that its market cap hit $22 billion. This has prompted future market cap predictions of more than 10x its current value. However, it\u2019s worth noting that while these predictions might represent the value of the market as a whole, this may not speak to the value of individual projects as investment assets. Crypto has always been a high-risk, high-reward space, in no area is that more true than for NFTs. It appears clear that in one way or another NFTs are here to stay, but whether most of the NFTs currently being traded will retain their value is very hard to say.<\/span><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_3143\" aria-describedby=\"caption-attachment-3143\" style=\"width: 1500px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-3143 size-full\" src=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/nft-phone.jpg\" alt=\"An image of a non-fungible token on a smartphone screen with a blue and purple background, and the physical piece of art behind the phone. \" width=\"1500\" height=\"1000\" srcset=\"https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/nft-phone.jpg 1500w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/nft-phone-300x200.jpg 300w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/nft-phone-1024x683.jpg 1024w, https:\/\/xcoins.com\/wp-content\/uploads\/2022\/01\/nft-phone-768x512.jpg 768w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><figcaption id=\"caption-attachment-3143\" class=\"wp-caption-text\"><em>It\u2019s estimated that NFTs will account for 10% of the crypto market cap in the next few years.<\/em><\/figcaption><\/figure>\n<h2><strong>What does the future hold for crypto?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">No one can truly predict how high crypto will go in a particular timeframe and anyone who claims to do so with certainty should be treated with suspicion. That said, a wide variety of indicators suggest that it&#8217;s clear that there is a lot of growth potential still to come.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The impressive expansion that we saw in 2021 demonstrated how much momentum is pouring into the market and is a good indication of the direction that crypto could go in the long term.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, as with any investment, there are no guarantees that it will continue to trend upwards. It&#8217;s important to <a href=\"\/en\/blog\/5-mistakes-to-avoid-when-investing-in-crypto\/\">invest according to your risk tolerance<\/a> with due consideration of the unpredictability of the market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">To stay up to date on all things crypto, like Xcoins on <\/span><\/i><a href=\"https:\/\/www.facebook.com\/xcoinsofficial\"><i><span style=\"font-weight: 400;\">Facebook<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, and follow us on <\/span><\/i><a href=\"https:\/\/twitter.com\/realxcoins\"><i><span style=\"font-weight: 400;\">Twitter<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, <\/span><\/i><a href=\"https:\/\/www.instagram.com\/xcoins.hq\/\"><i><span style=\"font-weight: 400;\">Instagram<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, and <\/span><\/i><a href=\"https:\/\/www.linkedin.com\/company\/54161996\/\"><i><span style=\"font-weight: 400;\">LinkedIn<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite high turbulence, zoom out and cryptocurrency appears to be growing exponentially. How much higher can the market go?\u00a0 The [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":3150,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[740],"tags":[],"class_list":["post-3138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How High Could Crypto Go in 2022? 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