What Is The Next Cryptocurrency To Explode In 2022?

Last Updated April 8th 2022
6 Min Read

These cryptocurrencies could be ready to make new highs this year

Cryptocurrency investments are like striking a goldmine. Once FOMO kicks in, prices go parabolic, and people have made insane wealth off crypto investments. This was most evident in 2021 when some cryptocurrencies made instant millionaires from pretty ordinary investors. For instance, Solana (SOL) rallied by 12,000%, while Shiba Inu (SHIB) made history after recording gains of 48,000,000%. 

With the massive potential that the crypto market holds, it is only natural to wonder, which is the next cryptocurrency to explode? No one has a crystal ball to tell where the market could go or whether crypto is here to stay as a market. However, it is possible to make some informed data-driven projections on which cryptocurrencies could perform well. 

Top 8 Next Cryptocurrencies To Explode In 2022

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Below are some of the next cryptocurrencies that could be up for a major bull run. 

1. Ethereum

Ethereum is not the kind of cryptocurrency that can give you 1000x gains, but it can easily double or triple your money in 2022. Besides, it is one of the more stable cryptocurrencies out there and easily rivals Bitcoin in terms of safety and stability. 

Ethereum (ETH) is a decentralized smart contracts platform that has dominated the market for close to a decade now. Platform blockchains like Ethereum make it possible for developers to create smart contracts for pretty much any process, finance-related or otherwise.  

Platform blockchains were huge in 2021 due to the increased adoption of smart contracts in DeFi, and many other decentralized applications. Ethereum, while expensive, offers developers a secure, reliable, and censorship-resistant platform for launching Dapps. 

While Ethereum has had issues with scalability and gas fees, it has been working on solving them through Ethereum 2.0. Work on Ethereum 2.0 has been ongoing since 2020, and with most of the process complete, Ethereum could see a higher level of adoption in the coming months.

Don't Miss: Ethereum (ETH) Price Prediction

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

2. Avalanche 

Avalanche (AVAX) was a relatively obscure cryptocurrency in early 2021. However, things have changed, and it is now one of the largest cryptocurrencies by market capitalization. 

Avalanche has made a name for itself as a fast, low-cost, and secure platform for launching Dapps. These metrics have seen its ecosystem of Dapps grow exponentially, and it continues to expand. Now that Avalanche is also venturing out to create a Metaverse platform, it has the potential to explode in value this year. 

Check Out: Avalanche (AVAX) Price Prediction

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

3. Terra

Terra (LUNA) shot to popularity in 2022, and it continues making considerable strides in the market. Besides making it to the top 10, it is one of the large-cap cryptocurrencies that have retested their all-time highs since the crypto bull rally of November 2021. 

Terra's growth has a lot to do with the growing popularity of its algorithmic stable coins. The stable coins are designed so that as their demand grows, so does the value of LUNA. With Terra USD now among the largest stablecoins in the market, its growing adoption could see the value of LUNA exploding this year. 

Read Also: Terra (LUNA) Price Prediction

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

4. The Sandbox

The Sandbox is one of the best cryptocurrency performers of 2021. Since it launched in 2020, SAND is up by 16,500%. SAND’s potential going into 2022 is linked to the popularity of the Metaverse. The excitement around the Metaverse has been building up lately, partly due to Facebook’s forays into this space. 

Metaverse cryptocurrencies are growing in popularity as more people adopt virtual living. Sandbox (SAND) is one of those cryptocurrencies that have grown in popularity. 

Sandbox is best known for its fast-growing play-to-earn gaming ecosystem. However, Sandbox is also getting into other aspects of the Metaverse that will entrench its position in the market. For instance, earlier this year, Sandbox announced that it was collaborating with Warner Music to host live concerts on the Sandbox Metaverse. 

As its adoption grows and hype around the Metaverse grows, Sandbox makes for good cryptocurrency investment in 2022.

Don't Miss: The Sandbox (SAND) Price Predictions

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

5. Render

As the Metaverse continues to grow in popularity, new Metaverse cryptocurrencies are uniquely positioned to explode in value. One of the newer Metaverse tokens that are uniquely positioned to explode is Render (RNDR). 

Render is a new kind of network that connects digital creators with anyone who has someone free unused GPU power and is okay with renting it out. Using Render tokens, artists can pay these providers for services rendered in real-time, without any middlemen involved or additional fees added on top. 

Given that the Metaverse needs a lot of computing power to take off, Render is likely to be one of the more viable alternatives for digital creators. This makes RNDR a pretty good cryptocurrency investment to bet on in 2022. 

Besides its strong fundamentals, Render was recently listed on Coinbase, a top cryptocurrency exchange globally. This makes Render token available to more investors, which is a plus in driving demand. 

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

6. Illuvium

Illuvium (ILV) is one of the fastest-growing Play-to-Earn gaming platforms in the market. In Illuvium World, a player captures creatures known as Illuvials that can be stored as NFTs and traded for ILV tokens in a crypto wallet. 

With the Metaverse growing in popularity in 2022, inspired by the successes of 2021, new projects like Illuvium are likely to draw a lot of investor interest. ILV has what it takes to explode in 2022.

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

7. Oasis Network

DeFi is growing exponentially, and billions of dollars continue to flow into this market. One area of DeFi likely to record exponential growth in the future is private smart contracts. This allows for more sophisticated DeFi products such as under-collateralized loans. 

Oasis Network (ROSE) is one of those that make it possible for private smart contracts to happen in DeFi. Adoption has grown steadily, and as DeFi grows, Oasis's odds to explode in value.  

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

8. Aave 

Aave (AAVE) has built a name as one of the best DeFi protocols for borrowing and lending crypto. This has a lot to do with Aave's features that make it possible for borrowers to shift between fixed and variable interest rate loans easily. 

Since Aave token holders enjoy special discounts when lending and borrowing crypto, Aave could explode in value due to growing demand.

Check Out: Aave (AAVE) Price Prediction

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

Should You Invest In The Next Cryptocurrency To Explode?

Finding the next big cryptocurrency is not easy. In a market full of scams and low-quality crypto coins, finding the next big coins can take a lot of time and effort. 

Ideally, if you are looking for a high ROI in a short time, you might want to look into small-cap cryptos. However, these come with many risks, including the fact that such cryptos can die out overnight. To lower such risks, it is always best to invest in a mix of big cryptocurrencies or even go for cryptocurrency stocks

Even this strategy can fail you, though. In 2021, solid cryptocurrencies underperformed while dozens of meme coins with no fundamentals went on to give thousands of percentages in gains.  

You can't go far by trying to predict the market. You will end up disappointed with the market. That said, crypto, like all other markets, is all about taking risks. By investing in cryptos with high growth potential, you significantly increase your odds of success. It is all about balancing risks and rewards without overexposing yourself in the market.

How To Spot The Next Big Cryptocurrency 

To figure out what is the next big cryptocurrency, it is important to understand where the entire craze around cryptocurrencies is coming from. The motivating factors behind the crypto craze are different for institutional and retail investors.

Retail level interest in cryptocurrencies

At the retail level, the key factor driving interest in cryptocurrencies is the hunger for quick money. In 2017, the ICO bubble saw people make millions off investments as low as $1000.

While the ICO bubble burst in 2018, a new wave of hype was built around meme coins in 2020. By mid-2021, anyone who had thrown just a few hundred dollars into meme coins like Shiba Inu became a millionaire.  

These cycles of mega-pumps have drawn a lot of investors who are looking to get rich quickly. Retail thirst for quick crypto wealth is evident in the massive leverage that cryptocurrency investors are taking upon exchanges. During the flash crash of 3rd December 2021, more than $1.5 billion was liquidated in four hours, one of the highest amounts to be liquidated so far.  

Institutional level interest in cryptocurrencies

At the institutional level, the motivating factors behind the growing interest in crypto are a mix of profits and capital security. 

Since the 2008 financial crisis, the stock markets have been going up. This is due to easy-money policies that followed the financial crisis and the share buybacks that followed. Equities have grown so much that there are now fears that they are at bubble levels. 

Interestingly, safe assets like gold are increasingly correlated to the stock markets. With inflation making fiat unattractive, institutions are finding themselves in a tough spot in terms of hedging against a possible market correction. 

This has seen cryptocurrencies, especially Bitcoin, become an attractive bet for institutional risk diversification. Institutions are also betting on cryptocurrency volatility as a potential driver for portfolio growth. 

The perception of crypto as a form of asset diversification is best captured in the sentiments of Cathie Wood, the CEO of Ark Invest. Cathie recently projected that Bitcoin could trade at $500k within this decade. Her projection is based on the idea that most of the companies in the S&P 500 will hold Bitcoin in their portfolio. 

Institutions are also aware that digital assets are an integral part of a process that has been ongoing since the 1990s, that of a complete shift from analog to digital systems. With blockchain set to completely change how we create, trade, and transfer value, institutions are betting on crypto as the next phase of tech growth. 

This structural view of cryptocurrencies at an institutional level is best captured by Arca Chief Investment Officer Jeff Dorman’s sentiments. Dorman believes there is a multiple-decade transition towards cryptocurrencies and that DeFi and NFTs point to this ongoing transition.

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

Cryptocurrencies Potential For Profit 

next cryptocurrency to explode

If you want to profit from the next big cryptocurrency, the first thing you need to do is keep an eye on the market capitalization

The higher the market capitalization of a cryptocurrency, the lower the chances it can give you 1000x in gains. The logic is pretty simple; there is only so much money available to go around.

For instance, it would be too ambitious to expect Bitcoin to do 1000x from its current price. That would give it a market capitalization in the 100s of trillion of dollars, much bigger than the world economy. Essentially, it would mean that all the money in the world would be going into Bitcoin, which is illogical at best. 

On the opposite end of the spectrum, it is an unnecessary risk to invest in a cryptocurrency that has a very low market cap, of say, less than $100k. While you can strike gold if such a cryptocurrency rallies, there is a good chance that you could be falling into a scam. 

Low cap cryptocurrencies are also heavily prone to pump and dump. That’s because just a single sale or purchase can move the price by a huge margin. As such, chances of being dumped on and being left with worthless bags are pretty high. 

Other Important Cryptocurrency Analysis Metrics

Crypto supply

The coin supply is an important measure of crypto prices because, at the end of the day, it is about demand and supply. When there is an excessively huge amount of cryptocurrency, the price can remain stagnant for long. Most importantly, pay attention to the circulating supply v total supply when it comes to supply. If the circulating supply is less than 50% of the total supply, the price can stay stagnant for long. That’s because, as new coins/tokens enter circulation, they will put downward pressure on the price. This mostly happens to cryptocurrencies that overall have low demand levels. 

Crypto Volatility

Volatility is good because it means the cryptocurrency you are buying can make you a lot of money in a short time. However, it also means that you can lose almost all your capital if things go south. Remember, this is a market where corrections of more than 90% are quite common in bear markets. Essentially, the less volatile a cryptocurrency is, the safer it is as an investment. 

Daily trading volumes

Volume measures how much of a cryptocurrency has changed hands in a span of 24-hours. Volume is an important metric because it gives you an idea of how liquid a cryptocurrency is. As a rule, the more liquid a cryptocurrency is, the better it is an investment. That’s because the actions of a single market player cannot hurt your portfolio. With illiquid cryptocurrencies, just one person selling can tank the price. 

Speed

This is the rate at which a cryptocurrency changes hands within 24 hours. If the turnover is too high, especially for new cryptocurrencies, it could mean that the founding team is dumping on new investors. For more established cryptocurrencies, it could mean that big news is coming up and investors are buying in expectation of a pump, or selling in anticipation of a dump. 

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

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