Surojit Chatterjee, Coinbase Chief Product Officer, has just published his predictions for the crypto market in 2022. He foresees significant advances in scaling Ethereum.
Analysts, investors, and industry leaders have shared their 2022 predictions about the crypto ecosystem. Surojit Chatterjee, Coinbase’s CEO, is certain that Ethereum will continue to lead Web3 and the crypto economy as it grows.
In a blog post by the company on Jan. 4, the CPO shared his predictions. He stated that Ethereum’s scalability would improve and alternative layer 1 networks would also gain traction.
“I am optimistic about Eth scaling improvements with the emergence Eth2 as well as many L2 rollups.”
Chatterjee also stated that there will be newer layer 1 networks that are focused on social media and gaming. Chatterjee predicts that advances in layer 1 and layer 2 bridges will greatly improve scalability. He also stated that the industry will “desperately search for improvements in speed and useability of cross-L1 or L1-L2 bridges.”
These bridges allow tokens to move from a layer 1, such as Ethereum, to a level 2, such as Arbitrum or vice versa.
The CPO mentioned ZK-rollups when referring to scaling technologies. He stated that they would “attract both investor attention and user attention”. Zero-Knowledge scaling “rolls” transactions data into batches for faster processing on Ethereum’s layer 1.
Matter Labs has made significant strides in 2021, thanks to the deployment and development of its rollup-based platform zkSync layer 2.
In 2021, the layer 2 ecosystem saw a massive expansion with an increase in adoption on all major platforms. L2beat, which tracks L2 ecosystem data, reports that the total value locked has increased by almost 11,000% in the past year, from $50 million in January 2021, to $5.5 billion at the end of 2019.
Related:L2 scaling remains crucial to DeFi’s future, even with Ethereum 2.0 in progress
Chatterjee forecasted that privacy-focused apps will continue to emerge, but this could draw more regulatory attention as more KYC/AML restrictions (know your customer/anti money laundering) are imposed.
“We will see privacy-centric use cases, including privacy-safe apps and gaming models with privacy built into their core.”
He also predicted that there would be more regulation at the industry level, more institutional participation in DeFi and NFTs, more brand involvement in Metaverse, NFTs and more Web2 companies trying to enter Web3.