In this article, Trading Education will point out 5 cryptocurrencies that are worth putting on your watchlist. This will embolden you to know the kind of altcoins you should patronize in May 2022.
After the crypto boom of April and May 2021, cryptocurrencies took a nosedive in June and July. The month of October and November saw prices of Bitcoin and other altcoins recover from the high lows suffered the previous months.
Positive crypto market sentiment, Cardano’s Alonso upgrade that saw the triggering of smart contracts, and Ethereum’s London Hard Fork were extremely instrumental in the huge gains by Ether (ETH) and Cardano (ADA).
This has led several people to ask questions such as what cryptocurrency will rise in May 2022, what are some other important cryptocurrencies aside from Bitcoin, what are the next cryptocurrencies to explode in 2022, what is the fastest growing cryptocurrency in 2022, and the best altcoins to invest in May 2022?
So which coins should be on your watchlist this month? Let us take an in-depth look into the best 5 altcoins to consider in May which could bring you gains in the short, medium, and long term.
Top 5 Altcoins To Watch Closely This Month:
1. Cardano (ADA)
Cardano crossed several milestones in 2021. It reached a new all-time high of $3.10 on 2nd September. Although there has been negative crypto market sentiment recently, May will still be a big month for the novel token behind the peer-reviewed blockchain technology that aims to solve real-world problems.
What is happening in Cardano?
After years of accomplishing milestones, Cardano officially launched its smart contract functionality.
Smart Contracts can be defined as programs stored on a blockchain that run when predetermined conditions are met. To put it simply, smart contracts are self-executing contracts that have the terms of the agreement between a buyer and seller directly written into lines of code. Examples of smart contracts are decentralized lending, exchange, insurance, and yield aggregation platforms called DAPPS.
The completion of smart contracts called Alonso upgrade saw 100 smart contracts processed in its 1st 24 hours.
In the last week of September, Cardano hosted a series of virtual events coupled with live events dubbed the Cardano Summit 2021. This is a community-led meet-up that took place across North America, South America, Europe, Africa, Asia, and Australia.
Delegates who got a chance to use the latest technology that was previously available to a select few such as technology giants, Google, were able to use a suite of video, social, and interactive features.
Most of the topics that were discussed include but are not limited to blockchain adoption, regulation, and sustainability.
In summing up the expectations of traders and investors who have stakes in ADA, Charles Hoskinson pointed out that, “The Cardano Summit 2021 follows the launch of smart contract capabilities on Cardano, and a remarkable six years of intensive development and peer-reviewed academic research to create a third-generation blockchain platform which is not only eco-friendly but provably secure.”
Should I Invest in Cardano (ADA)?
Cardano (ADA) is a token you should consider adding to your portfolio of investments. Cardano has had its share of critics ever since it joined the crypto space in 2017.
The completion of milestones does not mean that the cryptocurrency will provide short-term gains. Based on the extensive usage of its issuing authority (blockchain), ADA is still one of the most solid and exciting digital tokens that could bring you enormous gains in the long term.
The research-driven approach adopted by the team slows the project. But in the long term, Cardano will result in a robust and sustainable platform. It has already started delivering several projects in Africa, particularly its relationship with the Ministry of Education in Ethiopia where it uses the possibilities of blockchain to provide them with innovative technological products.
The biggest challenge continues to be attracting developers to the Cardano network in a smart-contracts space hugely dominated by Ethereum.
Cardano continues to fight for a spot in the decentralized finance space. In the last week of September, Cardano surpassed Polkadot and Kusama to become one of the highest-ranked blockchain projects in terms of development activity.
As per extensive research and considerations, several experts believe Cardano ADA could reach an average price of $2 by the end of 2022 and $6 by the end of 2025.
2. Litecoin (LTC)
The price of the Litecoin token dubbed the silver to Bitcoin’s gold increased by 60% in one month from October 10 to November 10 when crypto whales started to pour more money into the various altcoins.
These days Litecoin (LTC) continues to trade at less than 75% of its all-time high of $412.96. It continues to see relatively lower investor interest when compared to Bitcoin and Ether but it’s far better than other altcoins.
Because of its relatively lower price, Litecoin can still be tagged as a low barrier of entry for traders and investors.
Since the cryptocurrency market experienced a huge boom in the last quarter of 2021, several experts believe such a feat could be replicated.
This could see Charlie Lee’s innovation soar to highs that could see it retest its all-time high and then surpass it permanently.
What is happening in Litecoin?
On 13th September 2021, it was reported that Litecoin was in a partnership with retail giant Walmart Incorporation.
Representatives of Walmart came out to denounce the partnership. This announcement saw Litecoin’s trade volume reach new peaks ($8.7 billion) for the first time since 19th May 2021 where it reached an all-time high of $11.4 billion.
Although the partnership was discarded as fake news, Litecoin still made millionaires out of 950 investors.
Because of the SCRYPT innovation employed by Litecoin in its proof-of-work algorithm, the world’s largest theater chain, AMC Theatres included Litecoin (LTC) on its list as cryptocurrencies they will be accepting as a payment method.
This bolsters Litecoin's (LTC) credentials as a successful currency. This is because aside from transportability, lack of counterfeitability, durability, and scarcity, Litecoin continues to thrive on its divisibility status which helps in its use as a medium of exchange (utility).
In 2022, the number of transactions LTC is involved in on the back of this partnership will increase significantly.
Such liquidity only boosts interest in the token which results in increments in its market valuation.
Should I Invest in Litecoin?
Many crypto analysts and experts using fundamental and technical analysis believe that you should consider investing in Litecoin compared to other crypto tokens.
Despite all the ups and downs in the price history of LTC, many analysts believe that LTC’s price could grow further in the long term.
On the other hand, some experts think fear, uncertainty, and doubt (FUD) can cause the price of the token to collapse and hit new high lows.
Although there are uncertainties around the cryptocurrency market, Litecoin is set to offer an additional layer of security against Trojan horses, and other malware that can affect its ecosystem.
This progression of the network and a possible upgrade of its open-source protocol could see Litecoin's blockchain compete against the top guns in the space.
Litecoin is estimated by experts to trade at an average price of $350 by the year’s end of 2022 and trade at an average price of $580 in 5 years. In the short term, you could see more than 460% return on your investment.
3. Solana (SOL)
Solana (SOL) has moved from being one of the projects that tagged itself as an Ethereum Killer after its launch in 2019 to become a top 10 digital asset globally. After opening on 10th April 2020, Solana took advantage of the institutional demand for cryptocurrencies coupled with the interest of unsophisticated traders and investors to close the year at $1.51. SOL reached an all-time high of $260 on 6th November 2021.
This certified SOL as one of the highest returning cryptocurrencies of 2021. SOL has returned an impressive 8,000%. With new developments in its ecosystem, Solana is one of the altcoins that could bring sparks to your portfolio of investment.
What is happening in Solana?
Solana operates on a proof-of-history (POH) and a proof-of-stake (POS) blockchain that allows the creation of decentralized applications (DAPPS).
Due to the innovation by Anatoly Yakovenko and his reliance on a consensus algorithm, Solana is capable of handling up to 65,000 transactions per second at peak times. This means that the protocol processes more transactions per second than Ethereum 1.0, Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, and Dash combined.
This is the primary reason why Solana has become one of the go-to smart contract platforms in the space. Its relatively faster speed of processing continues to give it a competitive advantage over others.
One of the most decentralized exchanges in the space, Orca runs on Solana and continues to see huge liquidity daily. Aside from that, developers are building in the non-fungible token (NFT), Web 3 applications, and stablecoin categories.
In the last week of November, Solana ranked in the top 5 blockchain technologies in terms of development activity with 214.
What’s more, SOL continues to gain mileage in the news media which helps increase its popularity in the eyes of traders and investors. National Football League player Tom Brady pointed out that he is open to earning part of his salary in crypto on 22nd September. One of the tokens he’d prefer to receive as salary is SOL. With his millions of fans across the United States, it comes as no surprise that SOL was up by 16% on the day of the announcement.
Is Solana a Good Investment?
Solana is a good investment when you consider the price forecasts of analysts and experts at crypto news and prediction portals (Wallet Investor, Digital Coin Price, CryptoNewsZ, and Coin Price Forecast).
With that said, you should know that most investments in the cryptocurrency space come down to risk and rewards.
You should always ask the question, do the potential rewards of investing in Solana (SOL) outweigh the possible consequences of the risks?
Solana certainly has some risk factors. The project finds itself in the saturated market of decentralized finance. With the upgrade of Cardano in addition to the triggering of smart contracts by Bitcoin in November, Solana competes with major players Ethereum, Tron, Binance, Cardano, Polkadot, Kusama, Bitcoin, and EOSIO.
What’s more, SOL only functions as a governance and DeFi token that oversees activities on the Solana ecosystem. It doesn’t have extensive use as a transactional currency like Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and others.
With that said, Solana (SOL) continues to become popular in terms of the protocol and its novel token. With the possibilities of its blockchain technology, SOL continues to see huge liquidity with an average trading volume of $3 billion. This is a sign of investor interest in the cryptocurrency.
As a beginner or experienced investor, you can include SOL as part of your portfolio diversification without shedding thousands of dollars.
EOS is the novel token of the EOSIO ecosystem. EOS functions as a transactional currency and it’s a basic requirement for developers to build decentralized applications as well as use resources within the ecosystem.
This explains why the token continues to be involved in thousands of transactions daily. EOS is one of the most traded cryptocurrencies in the space. The digital coin has averaged $300 million as the daily trading volume. This plays a crucial role in its position as a top 50 digital asset.
What is happening in EOSIO
EOSIO continues to be backed strongly by the decentralized applications in its ecosystem. Activities on decentralized applications such as DolphinSwap, Organix, Defibox, Vigor, Gravy, Newdex, and Everipedia are processed through EOS. The liquidity being poured into these DAPPS has been highly reflective in the market valuation of EOS.
As more applications continue to be added to the more than 700 already existing on the ecosystem, the price of its novel token is poised to increase substantially in May 2022, and beyond.
Is EOS a Good Crypto to Buy?
EOS is a good cryptocurrency you can consider buying. Its blockchain (EOSIO ecosystem) contributed massively to the 639% year-on-year growth of the blockchain industry. EOS also formed an essential part of the 458,000 daily unique active wallets that were seen across all chains in the 1st quarter of 2021.
With the EOSIO network not limited only to developers of decentralized applications, EOS continues to benefit from its issuing authority’s partnerships with FinLab, Galaxy Digital, and SVK Crypto. What’s more, processing approximately 10,000 transactions per second means EOS can be involved in more transactions.
This is the primary reason why experts believe EOS may touch an average price of $4 by the end of 2022 and test approximately $24 in 2025.
AAVE has been a tradable token since October 2020. It is the novel token of the decentralized lending platform called the Aave Network.
AAVE like all DeFi tokens plays a key role in who has the power to vote on upgrades, which digital tokens to support, as well as the adjustment of collateralization.
AAVE is one of the few cryptocurrencies which has been a bit independent from the constant price fluctuations of Bitcoin and the whole crypto space.
Aside from that, AAVE is one of the few crypto tokens to have brought more than 180% returns to investors in 2021.
As one of the primed decentralized lending platforms in the space (Aave), the novel token (AAVE) has averaged $250 million in daily trading volume. This is more impressive than the volumes recorded by other DeFi tokens.
What is happening in Aave?
Aave continues to lead the chart of total value locked (TVL) in decentralized finance. With more than $8.99 billion, Aave controls 14% of TVL.
Aside from that, Aave will be benefiting from the London Hard Fork upgrade on Ethereum which will increase the speed of processing. You should know that Aave is also deployed on a layer 2 scaling solution, Polygon.
This means that either way, Aave will be able to process more decentralized lending smart contracts in a relatively faster manner that will increase its usage in the process.
In addition to this, there continues to be an improvement in rewards for liquidity providers. This will play a major role in the future valuation of its novel token, AAVE.
Is AAVE a Good Long-Term Investment?
AAVE is a good investment because its network, Aave, is the leading lending platform across the whole decentralized finance space.
As of 17th September 2021, Aave has more than $20 billion deposited in lending.
Aave also leads the market share of loans with 39.9%. This emboldens AAVE since millions of traders and investors look at the performance of an application to buy its novel token.
This is the primary reason why several experts and analysts believe AAVE could trade for an average price of $300 by the end of 2022 and $1,500 in 2025.
Do Your Own Research
You can find all the listed coins on the top cryptocurrency exchanges (eToro, Binance, Coinbase, Huobi Global, and FTX among others).
Editor’s Advice: Some analysts are concerned that since Bitcoin controls the entire cryptocurrency space, a dip in the price of the digital asset could lead to a plunge in all altcoins.
If Bitcoin drops further in price, it could knock down a percentage of your portfolio holdings.
At the same time, if you have studied the cryptocurrency market for a long time, the dip could lead to an uptrend (where prices will recover and reach new high highs after testing new high lows).
As Trading Education continues to say to our readers, investing in Cardano, Litecoin, Solana, EOS, and AAVE is risky.
There could be a crypto boom towards the end of 2022 which could see you make huge gains.
In the same scenario, there could be a bearish outlook of the market which could see you lose all your gains as a result of your holdings plunging into irrecoverable zones.
Use the thesis presented in this article as a foundation for researching more about the aforementioned coins and cryptocurrencies as a whole.
In a nutshell, invest what you can afford to lose.
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Virtual currencies are highly volatile. Your capital is at risk.
Buy and Sell Cryptocurrencies on Expert-Picked Exchanges
Trading Education has researched extensively about the best cryptocurrency exchanges to buy some of the aforementioned cryptocurrencies. You can start by visiting, Top 10 Best Cryptocurrencies With Most Potential To Buy And Invest In 2022.