Report: BTC will enter a bear market, while DeFi and DAOs will continue to grow

As central banks such as the Federal Reserve reportedly tighten liquidity measures, Huobi Research believes BTC will enter a bear market. On the upside, DeFi will continue to expand and be adopted, while DAO governance will eventually become the primary driver of on-chain activity. Regulation is also catching up. According to the Global Cryptocurrency Industry Overview and Trends report released by Huobi Research in partnership with the Singapore Blockchain Association, 40 countries have established more than 150 different rules for cryptocurrencies. Despite the pessimistic forecast for BTC, Huobi Research believes that the wider industry will see notable developments in other areas. DeFi is one of them, the TVL of this market has risen from $19 billion in January 2021 to $250 billion by the end of the year; in addition, people will witness the birth of DeFi 2.0 in 2022.