Larry Cermak offers 2022 outlook for the Bitcoin industry

In 2022, investor interest in existing crypto projects will persist, and those who stand to gain the most are exchange operators and data providers. This forecast was given by Larry Cermak, vice president of research at The Block.

“If there is already an established exchange or data-exchange business and they just need a little money to grow, they will never have problems,” the analyst said.

In his view, the focus in the coming year will be second-layer protocols that provide faster and cheaper transactions on top of blockchains. The keystone of this will be the existence of decentralized applications created specifically for L2 solutions.

While interest in NFT remains muted, Cermak believes the market will continue to grow and in the next wave will be more mature.

“Probably some niche NFTs won’t be in such demand next year. But some of the more creative and in-game assets… I think we’ll see something,” he said.

Regarding the growth of The Block’s research business, Cermak noted that the catalyst for clients’ interest in it was Tesla’s bitcoin purchase. Many traditional companies, even those that did not subsequently invest in cryptocurrency, became interested in the topic.

“We must know what Bitcoin is. We need to learn more about how this ecosystem works, get to know DeFi and L2,” he outlined their motives.

“Earlier, after Tesla’s first cryptocurrency purchase, Tesla sold part of its assets. The company also halted the sale of electric cars for Bitcoin. Later, Tesla CEO Elon Musk announced the sale of corporate merch for Dogecoin.

Bloomberg strategist Mike McGlone forecast mass adoption of cryptocurrencies in 2022 in the United States.

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