Feedback on Pantera Capital’s Predictions for the Crypto Market in 2022

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Considered one of Pantera Capital’s traders, Paul Veradittakit, had the braveness to make predictions for this 12 months within the tumultuous world of crypto. Even when we applaud braveness, we are going to put holes in it. As a result of it is the Web and that is what we’re doing right here. To be clear, the writer reviewed the principle traits of 2021 and extrapolated them into the long run. Which is a reasonably secure method.

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Contemplating Pantera calls itself the “first US institutional asset supervisor targeted solely on blockchain,” you realize Veradittakit didn’t even point out Bitcoin. What follows is only cryptographic enterprise. It also needs to be famous that the largest criticism of Web3 is that it’s enterprise capital backed and they’re those who will finally profit. Effectively, that is precisely what Pantera is and does.

Both approach, let’s discover Veradittakit’s insights and predictions.

Pantera on L2s and accumulations

Surprisingly, the article begins by throwing Ethereum beneath the bus. In response to Veradittakit, all of the motion will happen on the L2s. These have grown tremendously in 2021, and Pantera’s investor sees them as important to Ethereum’s scalability.

“As mainstream crypto adoption continues to develop, Ethereum’s community congestion will solely worsen, exacerbating its latency and payment points. Rollups are crucial to supporting Ethereum’s progress by making certain that the compute infrastructure is extremely scalable, permitting customers to work together with dApps with comparable and even higher usability expectations than with conventional internet purposes.

Studying between the traces, this prediction additionally signifies that Ethereum won’t launch any of its community upgrades this 12 months. Which appears proper.

Pantera on non-Ethereum/Bitcoin chains

This prediction refers back to the battle of the L1s, or the supposed Ethereum killers. The Pantera investor is clearly in favor of 1 specifically:

“Latest exercise from the Solana group, together with the launch of large social media and decentralized gaming funds, means that the ecosystem will proceed to develop tremendously within the coming 12 months.”

To begin with, you’ll be able to’t have “decentralized social media and gaming” in a centralized platform like Solana. Second, Veradittakit forgets to say Solana’s fixed technical issues and breakdowns. Do no matter you need with it.

One other development talked about by the writer issues bridges, “which allow interoperability between very completely different networks”, which he says will “speed up the expansion of non-Ethereum ecosystems”. Or, to place it extra bluntly:

“Total, these developments in cross-chain infrastructure will speed up the speed at which different layer-1 chains will acquire traction, fostering the event of a very sturdy and numerous multi-chain crypto ecosystem.”

What investor Pantera actually means is that each one different L1s will proceed to clean over Ethereum. Which appears proper.

SOL worth chart on FTX | Supply: SOL/USD on

Veradittakit on composability and Web3

This theme joins the earlier one. However the Pantera investor brings up a really fascinating matter:

“Decentralized id tasks, which permit customers to retain full and extra granular management over private information and popularity, enabling use instances round unsecured lending, know your buyer (KYC) guidelines, and extra.In 2022, we are going to see extra tasks increase the scope of on-chain possession, permitting customers to have full purposeful management over their id and belongings within the digital world.

One factor is definite, the world wants “a single connection for all companies”. Nobody can handle what number of passwords we’re supposed to recollect. This can be a actual downside. Within the article, nonetheless, the writer focuses on Ethereum-based options. We wish to point out that there’s another that makes use of the Lightning Community. And, you realize, it really works on a community that is truly decentralized.

Pantera on increasing NFTs

That is his least controversial take. Veradittakit believes that “NFTs will proceed to achieve super recognition over the approaching 12 months.” He specifies :

“NFT tasks in 2022 will present far more variety in use instances and reshape the best way we work together with and take into consideration digital media possession extra broadly.”

Nonetheless, paraphrasing Vitalik, NFTs should undergo a bear market earlier than they are often thought-about a hit. Will there be a bear market in 2022? Most likely not. So, Pantera’s prediction holds.

Veradittakit on Decentralized Autonomous Organizations

This prediction can also be pretty uncontroversial:

“Given their elevated prominence, I count on to see DAOs grow to be a mainstream technique of on-line organizing and collective motion, serving to people around the globe get meaningfully concerned in causes that matter to them. to coronary heart.”

And the Pantera investor continues with this one:

“As DAO operations grow to be more and more advanced, I count on to see much more tasks constructing DAO instruments and infrastructure in 2022.”

Extra DAO and instruments to handle them? It simply appears proper.

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Pantera on DeFi safety

This prediction begins with some horrifying statistics:

“Over $610 million was stolen through DeFi exploits in 2021 (an eightfold improve from $77 million in 2020), and a further $704 million in funds had been stolen and later returned by hackers computer systems, like these behind the $600 million PolyNetwork exploit. .”

Contemplating 2021 was the 12 months of DeFi, this could come as no shock. Criminals comply with success and a spotlight. Both approach, take a look at these numbers and extrapolate them to what they’d be if DeFi reached mainstream standing.

“In 2022, I count on safety to grow to be a significant focus for DeFi tasks and plan to launch a number of different tasks round higher good contract auditing, granular execution monitoring, and client safety.”

The query right here is, is it sufficient? Or are good contracts a safety danger by definition? Will anybody be capable of construct an unhackable DeFi protocol? Who will win this race?

Featured Picture by JohannaIris in Pixabay | Charts by TradingView


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