The crypto sector is witnessing massive growth and even the industry experts are taken aback by the evolution and growing mass interest. However, for those new into the sector, picking the right cryptocurrency for trading and investment can be tedious. There are so many popular cryptocurrencies in circulation and new ones are getting added almost every week. Are you wondering which of these tokens will gain traction in 2022? Listed below are a few cryptocurrencies that according to the experts may reach dizzying heights in 2022 and so you should consider them for your crypto portfolio.
The trends to continue in 2022
Before you learn about the cryptocurrencies that may explode in 2022 it is worthwhile to have a glance at the top crypto sector trends in 2021. The experts say these trends may continue in 2022 as well.
Bitcoin may witness a price surge in 2022 just like it did in 2021. Decentralized Finance may continue to grow in 2022. The popularity of proof-of-stake cryptos is also expected to rise in the next year. Tesla has stopped accepting Bitcoin payments. The interest in NFTs may also increase as is predicted by the recent trends.
The cryptocurrencies that are expected to grow hugely in 2022
- Ethereum (ETH)– The growth of Ethereum led many industry experts to opine that it may dethrone Bitcoin from the numero uno spot one day and it looks like that day is not far. Ethereum is in process of moving to the PoS protocol. However, the switchover may take 2022 to be wrapped. Ethereum has also been at the centre of many high profile crypto projects. There are over 200,000 ERC-20 compatible tokens. Several well-known investors including Mark Cuban have invested heavily in Ethereum and more may follow suit in near future.
- Bitcoin (BTC)– This is the crypto coin that started it all, several years back and it still holds its forte, the growing popularity of new generation coins notwithstanding. The institutional investment in Bitcoin is higher than others and so it is deemed as a safer option. While it has undergone price fluctuations a number of times, Bitcoin is less affected by investments made by large investors. A section of crypto experts have predicted BTC will witness staggering price surge. Over time, a lot of banks and businesses have started accepting Bitcoin payments across the world. The Bitcoin city to be set up in El Salvador has also made the proponents ecstatic.
- Uniswap (UNI)– UniSwap is now the 2nd biggest DEX project if you think of market capitalization. In a short time, it has burst into the league of top 10 crypto coins. While other crypto exchanges may offer similar features as Uniswap but it promotes tokenization of assets. Uniswap has liquidity pools where investors earn transaction fees through Ethereum powered smart contracts. It has also attracted some big investors. The troubles faced by Binance in recent times may also benefit Uniswap. However, experts advise to invest in Uniswap with moderation, as of now. Another reason behind its growing popularity is the lower transaction charges on its network.
What about other emerging cryptocurrencies?
Of course, you can choose to invest in many other upcoming cryptocurrency projects in 2022. Projects like Solano, ripple, Evergrow, and Litecoin are also expected to grow substantially. However, you have to think of your overall crypto portfolio and long-term investment goals. It is necessary to analyze if a new crypto project aligns with your investment goals and interests or not before investing in it. If you prefer the altcoins over the old-time players in crypto sector, the following options may suit your bill.
- Solana (SOL)– Solana amazed the sector experts with its steady growth and they expect the momentum to continue in 2022 too. Its PoH consensus mechanism makes the network efficient. It supports over 50000 TPS. A number of prominent dApps are based on its network.
- Waves (WAVES)– It is a platform useful for creating new tokens, dApps, smart contracts. It relies on the PoS consensus. Its native token Waves is compatible with Ethereum network. A number of high profiler crypto projects are riding on the platform including the likes of DeFi platform Neutrino and cross-chain network Gravity.
- Terra (LUNA)– The Terra project is hogging headlines these days and its native currency LUNA is a Stablecoin. Post the Columbus-5 upgrade that implemented the IBC standard users are getting interested in it more than ever before. The interoperability may work in its favour even in 2022. Since it is a Stablecoin it gets less affected by cryptocurrency market volatility, as it is.
- Cardano– Cardano has succeeded in grabbing attention of crypto sector investors owing to its reduced energy level and flexible network model. This decentralized Blockchain platform with PoS consensus algorithms supports smart contracts functionality and it has deployed DeFi services too.