DeFi Decoded – Top Narratives that we believe will drive investment returns in Cryptoassets in 2022

Happy New Year! 2022 is certainly off to a volatile start. Rising interest rates, combined with continued uncertainty around Omicron, have led to a widespread ‘risk off trade,’ and cryptoassets have not been immune. Volatility is the norm in digital assets. As an emerging asset class, it’s in a constant state of price discovery. If, as Nassim Taleb says “Fragility is the quality of things that are vulnerable to volatility,” than digital assets are most certainly Anti-fragile. So,we don’t flinch when markets go down. The fundamentals around cryptoassets and DeFi are stronger now than ever. Consider that gobal crypto adoption, led by Vietnam, India, Pakistan, Ukraine, and Kenya, rose by 881% in 2021 and we are barely scratching the surface.

On this episode, Andrew and Alex break down their top narratives, trends, and predictions for 2022. Alex expects another sovereign nation to adopt Bitcoin and sees the potential for dozens if not hundreds of U.S. companies to start owning it as a treasury asset. Andrew sees DeFi TVL surpassing $1 trillion. L1 “ethereum” killers dominated 2021 but Alex thinks 2022 will be the story of the multichain, with a focus on interoperability. Andrew thinks application specific blockchains will become vastly more popular. Listen in to hear all the predictions and understand why we’ve made them. As we say, the future is not something to be predicted, it’s something to be achieved. Ninepoint and Prophecy DeFi are working to achieve that better future