2021 was a turbulent year for the crypto market. Bitcoin reached its historical maximum twice, the first time in May when it hit $64,000 and then again in November when its value was over $68,000. It has declined sharply since then but still managed to end the year with almost double the value it had in January of 2021.
Some experts claim that it is only a matter of time before it reaches $100,000. If (or when) such a dramatic increase happens, it will pull the rest of the market with it, resulting in some historic gains.
Keeping this in mind, let us look at the top 5 cryptocurrencies with the most potential in 2022.
Ethereum (ETH)
The first coin on our watchlist, Ethereum (ETH), is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without downtime, fraud, control, or interference from a third party. The goal is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith.
This aspect makes the implications for those in some countries more compelling because those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products.
The applications on Ethereum run on ETH, its platform-specific cryptographic token that is sought by developers looking to develop and run applications inside Ethereum, or now, by investors looking to make purchases of other digital currencies using Ether.
The immense growth of the DeFi and NFT sectors makes ETH one of the top 5 cryptocurrencies with the most potential in 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Solana (SOL)
The next project to consider from our list of the best 5 cryptocurrencies with the most potential in 2022 is Solana. Often described as an Ethereum Killer, Solana is home to a decentralized blockchain that permits the deployment of smart contract agreements. With that said, it performs significantly better than its Ethereum rival across most metrics.
This network attempts to rectify multiple pain points in the market. First, the network’s architecture was structured to be expandable and resilient to censorship. This trustless and distributed blockchain tackles both transaction settlement speed concerns and bandwidth via this design.
The crypto market faces various scalability issues, and early blockchains' reliance on the Proof-of-Work consensus mechanism has led to congestion issues. Solana avoids these issues by introducing systems that allow the network’s transaction throughput to scale proportionally to its bandwidth. For example, Bitcoin can handle seven transactions per second (TPS), and Ethereum can handle around twelve. According to developers, Solana is capable of 50,000 TPS. In this way, Solana improves upon many drawbacks of early blockchain networks.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cardano (ADA)
Due to its large market gains and energy-efficient process, which is seen as far eco-friendlier than Bitcoin, Cardano (ADA) has attracted a wide range of investors. It is a popular, fast-growing blockchain technology that stands for secure and sustainable blockchain with ground-breaking use cases. The project can redistribute power from unaccountable structures to the margins.
Its native cryptocurrency ADA has recently acquired expanded attention as one of many proof-of-stake blockchains under construction in the crypto environment.
The Cardano project defines its protocol as a blockchain of the third generation intended to enable intelligent contracts with future applications of quality control and governance of the supply chain.
For various reasons, experts believe ADA to be one of the top 5 cryptocurrencies with the most potential in 2022. Investing in Cardano now is a wise choice because it is a very open and inviting environment that works the same for all. There are no barriers when it comes to trading and initially entering.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon (MATIC)
Polygon is a unique staking coin that was created in an attempt to scale Ethereum. Its purpose was to ensure compatibility by connecting every Ethereum-based dApp (decentralized application). Notably, network validators secure transactions on this blockchain. MATIC is among the top 5 cryptocurrencies with the most potential in 2022 because it can validate up to 65,000 transactions per second (TPS), allowing Ethereum networks to complete transactions efficiently.
Polygon is one of the top 5 cryptocurrencies with the most potential primarily because of its staking benefits. Delegators are only required to stake a single coin before participating in the network, while staking itself requires at least two tokens. You can begin staking by connecting your MetaMask wallet to your Polygon wallet. The expected annual staking reward depends on how many coins you stake. Therefore, Polygon is profitable and one of the top cryptos to invest in in 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Apecoin (APE)
ApeCoin is the governance and utility token of the APE and BAYC ecosystem and is one of the top 5 cryptocurrencies with the most potential. It is designed to act as the decentralized protocol layer for activities within the community and its ecosystem.
APE is also an ERC-20 token that developers utilize to empower and incentivize decentralized community building at the forefront of Web 3.0. It also solves one of the crucial issues that DAOs face today by enhancing community participation.
Another key factor that pushes ApeCoin to explode in April is its plans to integrate into play-to-earn games developed by the Ubisoft-backed Animoca Brands. In addition, the crypto would also be integrated into an upcoming game developed by nWay, a subsidiary of Animoca. If these integrations become successful, Bored Ape will create a unique brand name in the market.
An upgrade to the BAYC roadmap would impact APE's prices. APE will be more marketable and valuable if BAYC moves past a key mark, making now a good time to invest in the APE token.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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