Sygnum Bank ’22 Outlook: tipping point for institutional crypto adoption

Sygnum Bank’s Digital Asset Outlook 2022 report analyses the developments that shaped the crypto industry in 2021, and lays out Sygnum’s strategic outlook for the market and its key sectors and trends for the year ahead. Read the full report here – key takeaways include:

  • A tipping point has been reached where asset class maturity and regulatory clarity have passed the threshold for institutional investors to make significant allocations
  • Innovations in decentralisation, scalability and security are driving growth in applications as well as the mainstreaming of user adoption and a diverse range of use cases across multiple segments
  • Web3 presents the next frontier in digital assets, with key tokens appreciating more than 2,000 percent in 2021 and blockchain-based gaming and metaverse-related projects gaining momentum 

This comprehensive 32-page report is split into three parts: 

Part I: Crypto market developments – This section covers key structural shifts, including the move to mainstream user adoption, the present tipping point for investor fund flows and the supportive macro-backdrop. Also included is the solving of the bottlenecks of cost, speed and throughput via new innovations and a shift by regulators from scepticism to pragmatism. Key trends explored include expanding corporate use-cases, a potential flippening from Bitcoin to Ethereum, and the emerging metaverse ecosystem.

Part II: Key market segment outlook – This section includes the resolution of longstanding issues in the blockchain protocol layer, and the growth of applications and use-cases building-off these newly scalable protocol layers like DeFi, Web3, gaming and the metaverse. A diverse range of market segments are also analysed including NFTs, stablecoins, asset tokenization and Security Token Offerings (STOs).

Part III: Trends in Focus – In this section, we look at the defining year for Venture Capital, the large investments into custody solutions triggered by ramped-up institutional adoption, and the positive impact of increasing regulatory clarity in leading jurisdictions. 

Report author, Katalin Tischhauser, Sygnum’s Head of Discretionary Solutions and Research, says: “We now see the scope of blockchain-fuelled decentralisation accelerating beyond financial applications into a broader range of sectors and use cases that have the potential to touch almost every facet of life. This will transform many industries and greatly expand the universe of crypto assets.”

“2021 was the year when the consensus shifted to accepting that crypto assets are here to stay. Looking forward, our medium-term outlook for the market is strongly bullish as all the key macro drivers point in a positive direction – a rare state for any asset class. In 2022, we expect to see another strong year of continued innovation and growth,” adds Fabian Dori, Sygnum’s Deputy Group CEO and Head of Asset Management.

Download the full report here: Sygnum Digital Asset Outlook 2022

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