S&P Global, an intelligence and data company, suggests that crypto and decentralized finance trends will continue to gather steam in 2022. In its latest report, the company examines the current state of the market and notes that, while there are still serious problems that could hinder adoption, the sector will keep growing by complementing traditional finance in the coming year.
S&P Global Believes Crypto Will Continue to Grow in 2022
A new report prepared by S&P Global, an intelligence gathering and data company, predicts that the cryptocurrency and the decentralized finance sectors will keep growing in 2022. The report, titled Global Credit Outlook 2022, declares that while crypto institutional investments are still concentrated in a few companies, this could lead to other institutions following suit. The report states:
Three companies–Block.one, MicroStrategy, and Tesla–hold almost 84% of corporate investments in bitcoin. Yet, growing interest from institutional investors augurs accelerated expansion for cryptocurrencies as investment vehicles.
According to the report, tokenization could also be a powerful force to help people invest in assets they would not be able to without these tools. Tokenization, in other words, could provide the possibility of democratizing opportunities. Regulation will also be an important part of the next year, with the industry still needing “a regulatory framework that recognizes the rights of token holders and smart contract protocols.”