The crypto market was always incredibly volatile, however the war in Ukraine and sanctions on Russia have caused many crypto trends to accelerate. As sanctions continue on Russia, its citizens are turning to crypto to avoid having their assets frozen; the Ruble is crashing, and no one wants to be holding a currency that cannot be transacted globally. This has lead to an increase in demand for crypto, which is driving up price and forcing governments to think about how to regulate this currency.
Despite this volatility, the underlying technology of blockchain is seen as being very innovative and has a lot of potential meaning its still appealing to investors. In addition, cryptocurrencies are becoming more widely accepted as a form of payment, which could lead to more price stability in the future. More and more people see Bitcoin as a safe store of value as its use cases become clearer. Here are a couple of crypto trends in 2022 we’re likely to see.
-Wallet ownership is likely to grow in 2022, and non-custodial wallets could continue to get an edge over custodial variants
With a Custodial Wallet, the private keys are held by a third party, so the third party has full control over your funds while you only have to give permission to send or receive payments. Non custodial wallets are a type of Blockchain wallet that lets you be your own bank. Users have full control over their funds and on the associated private key. The use of wallets is likely to grow in parallel with the use of cryptoassets. More and more investors use their own wallets, although customers typically have their own wallet as well as wallets on exchanges too.
-Security will be a major trend for wallets and custody solutions on 2022
Security will be a major trend for wallets and custody solutions this year, one driven by the continuing entry of institutional investors into the market. It’s common daily news whereby another scam or hack is detailed, with cryptoassets being stolen or a situation where a user has lost keys to their wallet. The technology exists today to protect from these situations and provide reassurance for investors.