Top 5 Cryptocurrencies Of The Coming Year

By Trading Education Team

Last Updated October 20th 2022

5 Min Read

Top 5 Cryptocurrencies Of The Coming Year - Our Picks

Bitcoin - Original fiat-alternative cryptocurrency

Ethereum - The ever-popular smart contract platform

Cardano - Best green crypto to invest in right now

Binance Coin - Altcoin poised for a rally soon

Avalanche - Immense profits in the coming years

A Closer Look At The Top 5 Cryptocurrencies Of The Coming Year

If you are looking for the best cryptocurrencies to invest in, here, we will talk about the top 5 cryptocurrencies of the upcoming year. Have a look!

Bitcoin

The cryptocurrency that started it all, Bitcoin is a staple in the portfolio of most cryptocurrency investors due to its impressive price action and long-term prospects.

As a crypto designed to replace traditional fiat, Bitcoin has seen rampant adoption by individuals, businesses, and enterprises worldwide and is now considered legal tender in El Salvador and the Central African Republic.

Despite having a market cap of more than $380 billion, the crypto actually has no major competitors. Other simple payment cryptocurrencies, including Litecoin and Monero, fall utterly short when it comes to global adoption, and nothing has managed to come close to Bitcoin’s success.

Bitcoin is held by numerous sizeable firms, including the likes of Tesla, Coinbase, Block, and MicroStrategy. This gradual adoption has fueled one of the most impressive price rallies ever seen, with Bitcoin exploding from essentially $0 to a peak value of more than $69,000 since 2009.

And with its utility and uptake set to dramatically increase over time thanks to the growth of the Lightning network, and the development of Bitcoin DeFi solutions like Portal, there is good reason to believe it is one of the top 5 cryptocurrencies of the coming year.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

No list of promising long-term cryptocurrency investments would be complete without Ethereum — the juggernaut that introduced smart contracts to the world.

As a smart contract platform, Ethereum is used to host decentralized applications (dApps), powerful blockchain-based apps that can be accessed from anywhere, by anyone, at any time. The platform is currently the dominant smart contract platform, with over 3,000 dApps running on the blockchain.

Ethereum recently completed one of its biggest-ever upgrades. The upgrade, known as ‘The Merge,’ has shifted Ethereum from its energy-intensive Proof-of-Work consensus system to the much more environmentally friendly Proof-of-Stake. It will also set the stage for a range of further upgrades that could help Ethereum secure its position as one of the most technically advanced blockchains in operation.

As the native gas token of the Ethereum platform, the ETH token is set to become the main beneficiary of this growth. This is why ETH will be one of the top 5 cryptocurrencies of the coming year.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Binance Coin

Binance is well-known as a cryptocurrency exchange titan, with a trading volume that dwarfs all other centralized exchanges. With the recent advent of BNB Chain (formerly Binance Smart Chain), Binance has made its foray into the smart contract space in a big way. BNB Chain is one of the most popular blockchains by DeFi total value locked (TVL).

For those looking for the best future crypto to invest in, BNB stands out as a promising candidate. Widely heralded as the king of token utility, it has a huge number of uses in the Binance and BNB Chain ecosystem — being used for paying gas costs on the BNB chain, participating in Binance launchpad sales, unlocking trading fee discounts, and more.

BNB has also proved to be heavily resistant to bear markets. For example, in 2019, when most cryptocurrencies were collapsing in value, BNB was shattering record highs. Likewise, while most cryptocurrencies have lost upwards of 80% since the 2021 bear market, BNB was down just 60% — demonstrating its relative strength.

Part of this may be attributed to the large number of tokens burned through the buyback and burn campaign and the more recent pioneer burn program, reducing its supply. To date, more than 1.95 million BNB has been burned, worth more than $500 million.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Cardano

The Cardano network has a smaller footprint, appealing to investors for several reasons. It takes less energy to complete a transaction on this network than on a larger one like Bitcoin. This means transactions are faster and cheaper.

Last year, it launched a “hard fork,” an upgrade that increased functionality — in this case, enabling smart contract deployment. Another hard fork, this one called Vasil, launched in September and should improve the network’s blockchain’s scalability, Mint reported.

Cardano recently launched a test version of a platform called AdaSwap where developers can build decentralized finance apps. AdaSwap could elevate Cardano’s status as a Web3 network and drive up the price of its coin. These factors make ADA one of the top cryptocurrencies of the coming year.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Avalanche

Avalanche is a growing layer one blockchain that improves the base protocol to make the system more scalable, as Binance described it. It was founded as an Ethereum competitor by Ava Labs and computer scientists at Cornell University.

Its three individual blockchains can validate transactions independently. This makes the network scalable and able to handle large volumes of transactions — up to 6,500 per second. As a result, it is increasingly popular among Ethereum projects, according to reports.

As for the coin itself, Bloomberg reported earlier that Avalanche beat out ether as Terra’s reserve currency for its own UST stablecoin. Luna Foundation Guard, the nonprofit organization that supports Terra, intended to acquire $100 million worth of AVAX as part of that initiative.

AVAX has grown tremendously over the past year and is likely to continue its growth in the coming years, making now a good time to invest.