Top 10 Growth Cryptocurrencies To Buy And Hold In 2022
These ten cryptos have the fundamentals to drive growth in 2022
Are you in a rush and don't have time to read the article? You don't have to worry! Here is a sneak peek at some of our top growth cryptocurrency picks.
With institutions taking the lead in cryptocurrency investments, 2022 could be a good year. The potential institutional money has in crypto is reflected in the performance of the market in 2021. While there were many challenges, such as China, and the Omicron variant of the coronavirus, the market closed the year higher than it started.
What Does This Mean For Cryptocurrencies In 2022?
The growing institutional uptake of cryptocurrencies has two implications for different coins in 2022:
- Firstly, the cryptocurrency market will be more resilient to the various shocks likely to come up. With more money flowing into the market, the extreme volatility that characterized the market in earlier years could be a thing of the past.
- Secondly, new use cases for blockchain technology could emerge, further adding to the intrinsic value of different cryptocurrencies.
Now that the broader market outlook looks good, what are some of the best growth cryptocurrencies to buy and hold in 2022?
Top 10 Best Growth Cryptocurrencies To Buy And Hold In 2022
Let's now take an in-depth look into each of them. Ready?
1. Ethereum (ETH) – Eth2.0 To Make ETH Attractive All Through 2022
When people think of growth cryptocurrencies, Ethereum is unlikely to feature. That's because when it comes to exponential growth, it is the small-cap cryptocurrencies that have proven to deliver results. However, in reality, the number two cryptocurrency is as good a growth cryptocurrency as any.
Proof of Ethereum's potential as a growth cryptocurrency is evident in its gains over the past year. In 2021, Ethereum recorded gains of 291%. While small-cap cryptocurrencies delivered much higher gains, 291% is still high by any metrics. Besides, Ethereum has an element of safety that most small altcoins do not have.
Safety in this context is not just about the risk of being hacked but also value preservation. The cryptocurrency market has started the New Year with low upside momentum. This means you should be conscious of the risk of a correction, even as you chase gains.
Ethereum can deliver both growth and capital safety because of its use cases. Ethereum is easily one of the most adopted cryptocurrencies out there and easily rivals Bitcoin in terms of adoption. With aspects of the cryptocurrency market such as DeFi and Metaverse still growing and heavily reliant on the Ethereum blockchain, growth is guaranteed in 2022.
Besides, Ethereum is at the tail end of a transition that started way back in 2020. Both developers and investors highly anticipate the shift to Ethereum 2.0. This is likely to drive up Ethereum's demand for the better part of 2022.
However, it is not just FOMO around the transition that will drive up the value of Ethereum. There is also the fact that the changes being implemented impact ETH tokenomics.
For instance, the London fork of August 2021 made Ethereum deflationary. The real impact of the London fork will be felt most after the complete transition to Ethereum 2.0 at some point in mid-2022. Once the transition is complete, Ethereum could easily test prices above $10k within 2022.
That's a potential upside of over 100%, without the massive risks of smaller cryptocurrencies.
Considering these fundamentals and the growing institutional interest in Ethereum, it's not hard to see why it is one of the best growth cryptocurrencies to buy and hold in 2022.
2. Terra (LUNA) – Regulations Around Stable Coins Are A Plus For LUNA
Cryptocurrencies that have already mooned are usually not the best for investors seeking exponential growth in a short time. That's because, in most cases, the excitement phase is gone. However, there are exceptions, especially with cryptocurrencies with a strong use case.
Terra (LUNA) is one such exception. Terra (LUNA) has rallied by 13,600% in the last year. However, it still has momentum. In December 2021 when most cryptocurrencies performed dismally, LUNA still delivered an impressive 47% in gains.
As 2022 starts, there is every reason to believe in the potential of LUNA to deliver exceptional gains. One of them is the increased regulatory scrutiny of stable coins.
This regulatory scrutiny has driven up the demand for algorithmic stable coins. These are less prone to fraud and the resultant risk of regulatory crackdown. Terra has gained prominence in this market, with TerraUSD now having a market capitalization of over $10 billion.
Besides the launch of algorithmic stable coins, there are a lot more aspects to Terra (LUNA) that make it a top growth cryptocurrency to buy and hold in 2022. Terra has a growing ecosystem on top of it for starters, especially in the fast-expanding DeFi space.
One of the more interesting projects building on top of Terra is Pylon. Pylon allows investors to earn a passive income off their investments without the risk of loss. As more of these projects build on Terra, the chances are that the value of LUNA will grow as well.
Terra is also working on long-term adoption by helping upcoming developers create smart contracts. This is through the Terra academy that teaches Cosm Wasm smart contracts.
These factors make LUNA one of the best growth cryptocurrencies to hold in 2022 and beyond.
3. Dogecoin (DOGE) – Doge-1 Mission Is Happening In Q1 Of 2022
Dogecoin beat investor expectations between 2020 and early 2021 when it rallied by over 12,000%. Unfortunately, its performance all through H2 of 2021 up-to-date has been pretty weak. This has a lot to do with the fact that it is inflationary, a factor that dampens its value appreciation.
However, within Q1 of 2022, there is a good chance that it could easily pull off the same move that it did in 2020/21. The key factor that could see Dogecoin rally this quarter is the upcoming Doge-1 mission. The mission aims to experiment with the use of cryptocurrencies in space commerce.
It is not the mission per se that is likely to drive up the value of Dogecoin, but the FOMO around it. Dogecoin's price has consistently proven to respond to Elon Musk's tweets and statements. Recently, when he announced that Tesla would start accepting Dogecoin, the coin rallied by over 20%.
In essence, investors are expecting that as the Doge-1 D-Day approaches, a single tweet from Elon Musk could see DOGE rally. This demand for Dogecoin driven by expectations around Doge-1 makes it a growth cryptocurrency to buy and hold in 2022, despite it being inflationary.
4. Axie Infinity (AXS) – Hype Around The Metaverse Is Still Huge
The Metaverse took the cryptocurrency market by storm in 2021, and this momentum is unlikely to slow down in 2022. That's because both investors and developers are beginning to understand the potential that this market holds.
Axie Infinity has emerged as one of the best cryptocurrencies in this market and saw its market cap expand significantly in 2021. In the past year, Axie Infinity rose by 16,000%, making it one of the best performers in the year.
This year, AXS has the potential to deliver similar results. Besides the growing interest in Metaverse cryptocurrencies, AXS's chart paints a picture of potential value growth.
For the past four weeks, AXS has established strong support at $91.21. That's despite the volatility that has characterized the market in this period. Now that major institutions like Coinbase are starting to become interested in the Metaverse, interest in related cryptos like AXS will grow.
This means there is a high chance of AXS bouncing off the $91.21 support within 2022. If it bounces off this support, the first resistance is at $136.95. That alone is a potential 50% increase in value, making AXS one of the best growth cryptocurrencies to buy and hold in 2022.
5. Polygon (MATIC) – Ethereum Layer 2 Scaling Solutions Set To Take Off This Year
Polygon's prospects this year are pretty good, all thanks to Ethereum. Ethereum has almost fully transitioned to Eth2.0, relying heavily on layer-2 solutions like Polygon.
Essentially this means that Polygon is likely to experience a surge in demand this year, and that's a big deal for value growth. While it is not the only Ethereum layer-2 solution in the market, Polygon definitely has an edge because of its security, scalability, and an already existing ecosystem of projects building on top of it.
Polygon may have gained by 12,000% in 2021, but due to the events surrounding Ethereum, it could record even more significant gains in 2022. For this reason, it is one of the best growth cryptocurrencies in the market in 2022.
6. Pancake (CAKE) – Decentralized Exchanges Are Only Set To Get Bigger
DeFi is a big business, and as investors (both institutional and retail) take a keener interest in it, adoption will grow. This makes DeFi cryptos the best for anyone seeking growth in 2022.
Pancake happens to be one of the best DeFi projects out there, one whose adoption is on a growth trajectory. Pancake is a decentralized exchange that has become popular for trading any kind of tokens launched on the Binance Smart Chain.
One of the reasons Pancake has high growth potential is its high levels of adoption. Today, Pancake has more than 2.8 million users, $12 billion in investments, and the numbers are growing daily. Considering that adoption is a major factor in crypto growth, Pancake easily stands out as a top growth cryptocurrency to buy and hold in 2022.
There is also the fact that Pancake allows investors to earn a passive income through yield farming. Yield Farms allow users to earn CAKE while helping the PancakeSwap ecosystem grow.
There seems to be a massive hunger for CAKE-staking if the Total Value Locked on Pancake Swap is anything to go by. So far, more than $12 billion is staked, and the amount is growing by the day. This is advantageous to CAKE investors because it means the underlying demand for CAKE is strong. Quite naturally, this makes CAKE one of the best growth cryptocurrencies to buy in 2022.
Thanks to the staking aspect of it, there is also a good chance that CAKE could handle its value better than many other cryptocurrencies if the market turns bearish in 2022. Essentially, it means that CAKE is a win-win both in terms of value growth, and investment safety.
7. Thorchain (RUNE) – Cross-Chain Interconnectivity Will Drive RUNE Adoption
If you have been in cryptocurrencies for a while, then you will notice that it can be challenging to exchange crypto assets from different chains. For instance, it can be a challenge to exchange Ethereum-based tokens for Binance Smart Chain tokens.
However, if cryptocurrencies are to grow and gain widespread adoption, cross-chain asset swaps should be possible. That's where Thorchain comes into the picture.
Thorchain is a blockchain that serves as both DEX and an automated market maker (AMM). It utilizes two different methods, one similar to BNT or Uniswap's first iteration. It allows traders to move between asset pools with the RUNE token as an invisible intermediary. The other component to Thorchain is that of rewards to those who provide liquidity using a part of the fees generated from each trade.
ThorChain's use case is so strong that, since it launched, there has been more than $1.8 billion in crypto-asset swaps. Thorchain also has more than 30 liquidity pools, and the total value locked stands at over $388 million.
Besides its strong use case, the Thorchain developer team is actively working to make Thorchain better. For instance, Thorchain has an active bounty for identifying bugs, and it honours those who participate in making it better.
In November, Thorchain rewarded a security researcher who identified a TSS bug. The researcher was awarded $500k. Such moves are likely to encourage more white hats to identify bugs in Thorchain and help keep the network safe and stable.
When you combine such strong fundamentals and a use case that is instrumental to whole market growth, it is not hard to see why Thorchain is one of the top 10 growth cryptocurrencies to buy in 2022.
8. Inch (1INCH) – Cutting Out Front Runners Makes 1Inch Attractive To Traders
Decentralized exchanges have gained in popularity over the last couple of years. However, even as traders choose them, they are increasingly faced with the problem of front running on trades. Bots have taken over trading, and some are so advanced that they can catch trades before they execute, adding to a trader's total costs.
1Inch is one of the blockchains that have come up to solve this problem, a factor that gives it a lot of potential going into 2022.
The way 1Inch works is pretty simple. It sources liquidity from multiple exchanges and splits a single trade transaction across multiple DEXes to give traders the best rates. So far, 1Inch has grown quite significantly in adoption, an indicator that traders are starting to understand the importance of 1Inch in helping them cut the average costs of transactions and improve profitability.
Besides its core functionality of helping traders cut costs, 1Inch allows investors to earn just for holding 1INCH tokens. By giving liquidity for pools, investors can collect rewards in 1INCH tokens, which has given the 1INCH token a significant boost in value since it launched.
With more crypto investors increasingly looking to DeFi for passive income opportunities, 1INCH stands to gain more in adoption in 2022. As this happens, the value of the token is also in a unique position to grow in value.
The best thing about 1Inch is that it is decentralized. Unlike some cryptocurrencies that centralized organizations run, 1Inch is governed by a DAO. In essence, each holder of 1INCH tokens has a role in governance. This is important as there is an increased regulatory focus on DeFi. This means DeFi projects with an element of centralization are at risk of getting in trouble with regulators.
With a strong use case, a passive income opportunity, and a low regulatory risk, 1INCH is easily one of the best growth cryptocurrencies to buy and hold in 2022.
9. Sushiswap (SUSHI) – High Staking Rewards A Potential Value Driver For Sushi
Sushi is one of the cryptocurrencies that have taken the DeFi world by storm. That's because besides helping traders exchange tokens in a decentralized environment, it also gives them a chance to earn a passive income through lending. Users of Sushi swap can also borrow to trade, thereby increasing profits if a trade goes right.
While there are many decentralized exchanges, Sushi stands out because of its high staking rewards. When staking Sushi, investors get to earn 0.05% that is distributed to those who hold SushiBar. That's quite a huge amount when computed daily and has played a role in the growth of Sushi staking since launch.
Sushi has also grown in popularity due to its multiple earning streams. Besides staking, investors can earn a pretty high passive income by providing liquidity. For the various cryptocurrencies trading on Sushi, liquidity providers can earn a 0.25% fee on all trades based on their pool contributions. The best part is that this liquidity can be withdrawn at any time. This is a feature that has seen the adoption of Sushi grow over time and will play a role in adoption going into 2022.
Sushi has also become very attractive to leverage traders because of its easy lending terms. With Sushi, traders can borrow up to 75% of their collateral. This is likely to keep drawing investors to Sushi going into 2022.
Besides these core functionalities, Sushi and other decentralized exchanges stand to benefit from the increased investor awareness on the benefits of decentralized exchanges. Adoption could get stronger this year with the risk of hacks and increased regulatory scrutiny on centralized exchanges.
All these factors point to Sushi as a growth cryptocurrency.
10. MetaHero (HERO) – MetaHero Is Taking The Metaverse To The Next Level
As mentioned earlier, the hype around the Metaverse is likely to remain strong in 2022. For this reason, MetaHero stands out as a growth cryptocurrency to buy and hold in 2022. While Metaverse cryptocurrencies are springing up every day, MetaHero is one of the more unique ones.
MetaHero is looking to help developers create realistic human faces for the virtual world of the Metaverse. This is a big deal because it is the next logical step towards adopting the Metaverse at scale.
MetaHero makes use of some of the latest technologies in 3D modelling and scanning, thanks to a collaboration between experts from different fields. The result is a Metaverse that has applications across industries.
Some of the industries where the MetaHero Metaverse has applications include gaming, virtual reality, augmented reality, social media, and even medicine. This is a big deal and gives MetaHero an edge in adoption as the Metaverse compared to its competitors.
Besides a strong use case, holding the MetaHero token as an investment makes a lot of sense. That's because everything in the MetaHero Metaverse ecosystem is transacted in HERO tokens. In essence, as adoption of the MetaHero Metaverse grows, so will the value of the HERO token.
It is also noteworthy that MetaHero has a very sustainable business model that guarantees its success in the long run. MetaHero uses a combination of B2B and B2C and generates revenue from the paid-to-scan approach.
The MetaHero project also has a game plan for the future, which is key to long-term value growth. Per the MetaHero website, they will be launching 3 Metaverse Chambers this year. These will help bring more participants to the MetaHero ecosystem.
With all these factors at play, it is not hard to see why MetaHero is a significant growth cryptocurrency to buy and hold in 2022.
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