The crypto market has been in a dip since the beginning of 2022. The crypto market has lost a lot of value along with traditional assets in response to various macroeconomic events.

Despite this, analysts are still very optimistic about Bitcoin and Ethereum, the two market-leading cryptocurrencies, as well as stablecoins. The fundamentals of these digital assets will hit new highs this year.

Analysts Name the Key Fundamentals of the Crypto Market for 2022

In February’s Bloomberg Crypto Outlook, analysts at Bloomberg Intelligence (BI) identified the top digital assets that will continue to dominate the market in 2022. These include Bitcoin, Ethereum and stablecoins which they call cryptodollars. The team of analysts led by senior commodities strategist Mike McGlone is optimistic about these digital assets because of their fundamentals.

Bitcoin, Ethereum and cryptodollars make up about 70% of the total crypto market capitalization. Purging the excesses of 2021 may continue, but we expect the market caps of these three stalwarts to just keep rising, notes BI.

The fundamental thing that stands out for Bitcoin is its limited supply of 21 million. With a declining supply and increasing market demand for Bitcoin, Bitcoin (BTC) is on track to become a global digital collateral BI banknotes. They add that the pioneer cryptocurrency is uniquely positioned to continue rising in price as well, and will continue to maintain its position at the top despite thousands of new cryptocurrencies popping up in the crypto market.

Ethereum and Stablecoins are also poised to outperform

The strongest fundamental feature of Ethereum noted by the report is its broad ecosystem that allows, among other things, a large market share of NFTs and cryptodollars in the crypto industry. The increasing use of stablecoins minted on the Ethereum blockchain is strongly supporting the price of Ether.

Meanwhile, stablecoins, almost all of which are pegged to the dollar, will continue to dominate because of the ease they can offer users in making dollar payments. Pointing to the growth of the top six cryptodollars, BI notes that between early 2021 and February 2022, their combined market capitalization increased about 5x. The best stablecoins, including Tether USD (USDT) and Circle’s USDC, have a combined market cap of about $170 billion.

BI’s outlook is not so optimistic for the rest of the crypto market. The analysts stressed that the more than 17,000 other cryptocurrencies on the market have shown no significant use cases and were largely just speculative.


The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

About the author

Olivia’s interests span the entire cryptocurrency and NFT and DeFi industry. She remains as fascinated with cryptocurrencies today as she was in 2017 when she first started reading about them. She is actively looking for the latest Crypto related stories. When she’s not writing, she tends to her pet Chihuahua or prepares vegan recipes. Reach me at [email protected]

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