2021 was a great year for crypto indeed. It started with deliberations, encountered dips along the way, scaled new heights from there, and eventually dropped a fair bit as the year concluded. On the other hand, 2022 so far hasn’t been anything but middling for the global crypto community.
But the headwinds faced by the crypto market aren’t random. Instead, every major transition that we are looking at was predicted and foreshadowed by some extremely popular charts.
- Two of the featured charts talk about BTC’s recent ATH and how profitable its supply is moving into 2022.
- Cross-chain projects are insanely popular in 2022, and there is a chart talking about the same.
- NFTs are still hot, and the weekly transactions when it comes to gaming NFTs do tell a lot about the same.
- As per Google’s search trends, Web 3.0 is getting some crazy attention.
Crypto charts aren’t only about the trendlines, indicators, and price movements. They can also be about asset value entering and exiting exchanges, and the overall liquidity present in the market. Or, they can help crypto enthusiasts back-engineer some era-defining moments to stay afloat in a market rife with uncertainties.
Regardless of what a crypto chart aims to achieve, we shall discuss 5 of the most popular ones that we came across in 2021 and even in 2022. And believe it when we say these charts have it in them to help you prepare for the next leg of the crypto renaissance.
But you won’t have to read them on your own. We have you covered.
Why Should We Read and Analyze Crypto Charts?
Charts reveal what words cannot. But hey, don’t stop reading yet.
Professionals and even mid-level crypto analysts prefer looking at visual elements to make decisions. They value charted comparisons, analytics, and visible metrics over texts and random numbers when gauging the overall crypto space, market breadth, asset volatility, and other factors.
And that is exactly why we shall be taking up five key charts and discussing them over the next few paragraphs. Also, you need to understand that each chart that we are going to take up relates to a key crypto event, either ongoing or recently concluded.
Chart 1: Growing popularity of cross-chain solutions
Did we tell you how stoked we are about cross-chain crypto projects? Well, here is a detailed explainer to help you understand the nitty-gritty of the same. However, it is not just pomp and show. There has been a spike in the popularity of Ethereum L1 Bridges lately. Ethereum-backed cross-chain, interoperable bridges like the Fantom Multichain, Near Rainbow, and Solana Wormhole are slowly moving up the charts in terms of global attention.
Source: The Block
This means that like Binance Smart Chain or BSC, Fantom, Near, and Solana are also growing into major DeFi ecosystems. All thanks to the ever-evolving Ethereum-backed cross-chain bridges. As per the chart, cross-chain innovation and adoption spiked in January 2022. And this behavior means that 2022 can be expected to be a year of utilities and not just crypto hype.
Chart 2: Weekly NFT transactions steady (Gaming)
NFT games are still turning heads, with key creators like Crypto Kitties, Crypto Blades, and Axie Infinity hogging all the limelight. The weekly gaming transactions have increased in 2022 compared to December 2021. However, after peaking for two consecutive weeks, gaming transactions have flattened out at close to $250B.
Source: The Block
This development came in the wake of global uncertainties and means that people are holding onto their game-specific NFTs Also, a steady weekly transaction value reveals that metaverse and play-and-earn gaming are expected to become bigger in 2022.
Chart 3: Web 3.0 is more than a rage
Do you take Google search trends seriously? Well, we do, and that is exactly what the upcoming chart will validate. Web 3.0, as a relatively new term, is at the crossroads of mainstream adoption. While a few believe it to be the future, a handful of people aren’t convinced about its relevance in the modern era.
Source: The Block
But projection won’t get us anywhere when we can rely on pure stats. As per the chart, Web 3.0 is an insanely searched term, especially when we compare the recent search volumes to that of 2020. In relation to the past figures, Web 3.0 was searched the most in December 2021.
However, the search volume hasn’t dropped all that much. It is still hovering close to 75. This finding means that Web 3.0 is making waves and is going to be a huge deal in 2022 and beyond.
Chart 4: BTC peaking in November and showing signs of a correction
Probably the most popular chart of the lot, BTC peaking in November was a sight to behold. And while it reached $69,000 and piqued the interest of many investors and traders, the signs of a correction were ominous.
Source: Trading View
As you can see, the consecutive high candlesticks were immediately followed by a spike in seller volume. At $69,000, the RSI indicator was also touching 70, and BTC did have the potential to move up from there. But global sentiments ensured that bears sprang into action, facilitating a crash of sorts. The buyer volume has never been the same since, and BTC even touched $34,000 a few days back.
However, the RSI strength at $69,000 means that if BTC can reach similar levels in 2022, it might have the potential to move higher, if global factors permit.
Chart 5: BTC and ETH still profitable
BTC and ETH have been shedding gains in 2022. But it wouldn’t be wise to count them out as a larger percentage of people holding them are still in profit. Also, while profitable BTC holders exceeded ETH by over 40% in 2019, the differences in 2022 are next to nil.
Source: The Block
As visible, on 31st of December, 2021, over 98% of ETH supply was profitable as compared to BTC’s 90%. But what do these figures and stats reveal?
The lines suggest that despite dropping, the overall supply is still profitable. And that is exactly what is going to resurrect these coins back to their peaks in the future.
And those are your five popular and interesting charts that continue to hint at a Blockchain and crypto-focused world in days, months, and years to come. If you look closely, each chart has something specific to tell, including the growing and sustained popularity of Web 3.0, people’s faith in BTC and ETH, the NFT potential, and a world that’s biased towards cross-chain crypto projects.
Did these popular charts help you out? Download the CoinSwitch App now to use the info and start your crypto journey, right away.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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