Top 5 cryptocurrencies such as Bitcoin, Ethereum, and Memecoin predicted in 2022

In 2022, it is predicted that Bitcoin will rise even more if the stock market grows, and Bitcoin's performance will be lower if the stock market is sluggish.

Market Insider reported on the 2nd (local time) that 2021 was the golden year for digital assets, but 2022 could be an even more exciting year.

The 2022 cryptocurrency forecast by Arcane Research, a company specializing in blockchain market analysis, includes the prediction that meme coins such as Dogecoin and Shibainu Coin, which heated up 2021, will disappear.

Crypto investors have been on a roller coaster all year round in 2021. Almost all cryptocurrencies, from Bitcoin to Dogecoin, hit all-time highs, showing surprising gains. However, in May of last year, about 50% of the total market disappeared in just 7 days. And last September, China's crackdown on cryptocurrencies was expanded to ban all virtual currency transactions in the country.

El Salvador, on the other hand, set new milestones, including adopting Bitcoin as a fiat currency in September, the explosion of meme tokens, and the sale of non-fungible tokens (NFTs) artworks for $69 million.

What will happen to the cryptocurrency market in 2022? The top five predictions for cryptocurrency in 2022 published by Arcane Research are as follows:

Bitcoin moving along the S&P 500

Despite the threat of a global economic recovery from rising coronavirus cases, both Bitcoin and the Composite Index surged 66% in 2021, while the S&P 500 rose about 27%.

However, given that Bitcoin is increasingly behaving like a risky asset, Arcane Research predicts that Bitcoin will further amplify significant moves in the stock market.

“If the stock market continues to rise in 2022, it is likely that Bitcoin will perform even more,” Arcane predicted. He added, “If the stock market lights up red, Bitcoin will likely underperform.

Ethereum will surpass Bitcoin

Ethereum (ETH) has long been considered a second fiddle (the name of a medieval violin, meaning to play a minor role) and was treated as a sub-coin of Bitcoin. However, in 2021, Bitcoin increased 66% while Ethereum increased 418%, significantly outpacing Bitcoin.

“This performance gap is the largest since the launch of Ethereum in 2015,” Arcane explained.

One of the reasons why Ethereum will continue to perform in 2022 is the surge in NFT sales. Most of these tokens still run on the Ethereum blockchain. And in this year's Berlin Update, a major upgrade to the London hard fork improved the network's ability to handle more transactions.

meme coin decline

By 202, most meme coins will disappear into obscurity. Investors have seen the 2021 meme coin explode from side to side. For example, Shibanu, a Dogecoin spin-off, increased by 44.54 million percent last year. The cryptocurrency squid, named after the popular Netflix series 'Squid Game', jumped more than 75,000% in a week and then disappeared.

"The market for 2021 cannot be summarized without mentioning the absurd Rally of Mimcoins in 2021," said Arcane Research.

Stablecoin Market Reorganization The

US Dollar Coin (USD) is expected to overtake Tether (USDT). Tether (USDT) has been around for quite some time as the largest stable coin by market value. This year, however, it looks set to overtake Tether as the largest stable coin, especially as it decides to join the USD coin's lending wave.

Arcane Research analyzed that "innovative loan products that pay high returns for stable coin deposits primarily drove stable coin growth."

Continuing the close link between Bitcoin and VIX

Although the stock market has seen remarkable gains in the past year, "Fears of the broader financial markets have had a direct impact on Bitcoin's performance," according to Arcane Research.

'VIX' refers to an indicator of the volatility of S&P 500 index options traded on the Chicago Options Exchange (CBOE).

The surge in CBOE's Volatility Index (VIX) was accompanied by a sell-off for Bitcoin. Arcane Research has warned that market headwinds in 2022 could affect Bitcoin's short-term price trajectory.