Since 2020, the total market cap of all cryptocurrencies has grown from around $200 billion into the trillions. Currently, it is around $1.1 trillion with more than 21,650 cryptocurrencies represented. With more crypto users every month, crypto trends in currencies, DeFi, gaming and NFTs have emerged and continue evolving.
Five top trends to watch in November 2022
1. Possible Breakouts for BTC and ETH
According to recent analysis from crypto experts, both BTC and ETH could begin bullish momentum in November 2022. One analysis showed that by March 2024, BTC could reach $63,000 with reward halving from mining. The prediction was based on previous BTC activity in April 2020 and July 2016 when there was bullish price movement after those reward halvings. Price momentum started about 15 months before each period, which means it could happen again soon. Weekly price charts show a deviation from the long downward trend that has been ongoing since March.
ETH gained about 20% in the span of a week and caught the attention of investors. At the time, it reached $1,534 and cleared resistance. ETH recently beat BTC for gains and outperformed many other top cryptocurrencies on the market. In 2021, ETH also beat BTC in gains but trailed behind it in 2022. Recent exchange withdrawals and long-term MVRV ratio changes indicate a possible breakout for ETH soon.
2. Collateral-Backed Stablecoins Gain Popularity
The unfortunate crash of TerraUSD left many investors hesitant to touch stablecoins. Terra was backed by an algorithm that minted and burned LUNA and UST to stabilize its price. While there are other stablecoins that are pegged to algorithms and cryptocurrencies, some are pegged to collateral in the form of standard currencies or other commodities. The goal is for the stablecoin to maintain the same value as the collateral that backs it.
Some collateral-backed coins are demonstrating stability and are gaining popularity among investors who want to avoid the volatility of other cryptocurrencies. For November 2022, Tether and USD Coin are two stablecoins that are on several lists of top cryptocurrencies. Tether is backed by fiat currency, and USD Coin is backed by the U.S. dollar. Also, Tether has another coin, XAUT, which is backed by gold. Each ERC-20 token is pegged to an actual gold bar.
Investors who are looking at stablecoins must also follow regulatory trends to see how changes may affect this area of the crypto world. After the Terra disaster, lawmakers gained an interest in developing stricter regulations and requirements for stablecoins. Although it has not yet been voted on, there is a bill that has been referred to the Senate Committee and read twice. It would impose taxes for certain digital assets in addition to implementing stricter stablecoin regulations.
3. Some Altcoins May Continue Upward Trends
During the last few weeks, there has been a considerable rally of the crypto market. The result is a hopeful outlook on several altcoins for November. Based on a few top sources that publish lists of recommended cryptocurrencies to watch, a couple top picks for November 2022 are Binance Coin and Mask Network Coin. During the past week, MASK’s price rose 89.91%. Price movements for November have significantly surpassed October’s. Although the coin could correct at $4 and trigger longs, its outlook is favorable for November. Recently, BNB had 15% gains in a week and was trading at $354. With current positive buying sentiments, the coin is expected to continue upward movements. LINK is another altcoin some experts expect to possibly see a breakout from after recent weekly gains of 20%. However, it may retest before rallying.
4. Growing Institutional Adoption of Crypto
In the past, many larger financial institutions were uninterested in the crypto ecosystem. However, those views have shifted during the past couple years and continue to do so moving into November 2022. This is especially true in the realm of asset management. When 2020 ended, $15 billion of managed institutional assets were put in crypto assets. That amount was five times higher than the amount recorded one year earlier.
In October 2022, Fidelity Digital Asset Management revealed plans to hire 100 additional employees to run its digital assets unit. With a projected total of 500 workers with the new additions, this marks a significant growth for the entity. Other recent moves by the company hint at a bullish outlook on crypto, which defies the widespread recent bearish trends tied to layoffs within smaller crypto companies. With other large firms like Fidelity, which manages assets totaling $9.9 trillion, there are signs of optimism in adopting the crypto ecosystem as well. Despite companies with smaller balance sheets failing, experts suggest that larger companies with more financial power can benefit from those failures. This is a crypto trend that is expected to start growing in November and continue into the year ahead.
5. Tokenized Utilities and P2E Games Gain Momentum
Both these trends have been evolving for a while. The world of crypto has expanded to include nonfungible tokens with utilities that connect to the real world. NFT projects exploded in popularity over the last year, and savvy investors who took advantage of initial sales of popular projects gained valuable utilities to use or sell. One unique new project that investors are watching for November 2022 is IMPT, which ties NFTs to carbon credits that are purchased to help efforts to offset environmental emission impact. LuckyBlock is another crypto entity on some recommended lists. It combines the casino and crypto worlds, and it recently announced the launch of 10,000 benefit-packed NFTs.
While some of the play-to-earn crypto games that are popular require considerable investments, others do not. Big Time is a recent addition to watch. It has quality graphics, earnable accessory tokens that users can sell and a capped amount of SPACE tokens. The limited SPACE tokens are required for hunting other game tokens and creating customized gear. Another new game project that has caught the attention of crypto enthusiasts for November 2022 is Tamadoge, which is a spinoff of the 1990s Tamagotchi pets with a Doge theme. Users breed virtual pets and compete to win crypto prizes.
Much of the enthusiasm about the outlook of the crypto market for November 2022 came from BTC’s positive performance. However, there are still macroeconomic issues that could affect the market moving forward. Despite the unpredictability of it, there are still new trends and projects emerging that provide opportunities for crypto investors.
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