A top executive at US-based crypto exchange Coinbase is unveiling what he believes is in store for the crypto markets in 2022.
In a new company blog post, chief product officer Surojit Chatterjee says that Ethereum (ETH) competitors Avalanche (AVAX) and Solana (SOL) should see significant improvement this year and that new layer-1 (L1) solutions will emerge.
“As we welcome the next hundred million users to crypto and Web3, scalability challenges for ETH are likely to grow…
Traction of Solana, Avalanche and other layer-1 chains shows that we’ll live in a multi-chain world in the future. We’re also going to see newer L1 chains emerge that focus on specific use cases such as gaming or social media.”
Chatterjee also says he believes decentralized finance (DeFi) protocols will begin to embrace regulations and that large institutions will begin to play a bigger role in DeFi because of it. He says that DeFi platforms welcoming regulations along with know-your-customer (KYC) verification standards would pull in hesitant blue-chip investors.
“[Institutions] are still hesitant to participate in DeFi. Institutions want to confirm that they are only transacting with known counterparties that have completed a KYC process. Growth of regulated DeFi and on-chain KYC attestation will help institutions gain confidence in DeFi.”
The executive also predicts that prominent brands will follow in the footsteps of Coca-Cola and Charmin by participating in the metaverse and utilizing non-fungible tokens (NFTs).
“We’re likely to see more interesting brand marketing initiatives using NFTs. NFTs and the metaverse will become the new Instagram for brands.
And just like on Instagram, many brands may start as NFT native. We’ll also see many more celebrities jumping in the bandwagon and using NFTs to enhance their personal brand.”
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