Top 5 Cryptocurrencies That Could Make you A Millionaire In 2022
This can be considered the very short term, and cryptocurrencies that can make a person rich in this period need to have some strong news coming up. Below are some cryptocurrencies that hold a lot of potential in this period.
Dogecoin has some big news coming up in Q1 of 2022 that could see it make a parabolic move pretty soon. In Q1 of 2022, SpaceX and Geometric Energy Corporation are planning a trip to the moon named after Dogecoin and funded in Dogecoin.
The project was announced earlier in the year, after Dogecoin’s parabolic rally that was fueled by Elon Musk’s tweets.
This project is such a big deal for Dogecoin because of the media attention it will generate. The mainstream media always highlight space events, and this will be no exception, especially since it has the backing of Elon Musk and SpaceX.
Through the media attention that this event will create, many new investors will FOMO into Dogecoin in the hopes of riding the wave. The demand pressure that this will create could see Dogecoin test a price between $1 and $1.5.
That’s a significant increase from its current price, and for someone who gets in now, this is a crypto that has the potential to create wealth in a very short time.
The best thing about Dogecoin at the moment is that it is relatively low-priced. Dogecoin is trading at around $0.24, which means it is possible to accumulate huge amounts of it and profit from the volumes.
For instance, if someone has $50k to invest today, that would give them roughly one Bitcoin. However, the same amount can give around 208,000 Dogecoins. If the upcoming space event creates enough FOMO to push Dogecoin to say $1.5, then $50k would translate to $312,000.
If a little leverage is used, say 1x to 2x leverage, the gains could easily be north of $500k. While it may not be considered wealthy, it’s money that can transform a person’s life in most places around the globe.
Of course, for Dogecoin to give such returns, the broader market, too, needs to be overall bullish. So far, the market is showing promise. The crypto market has made a strong recovery from its lows of June and is now back above $2 trillion in total market capitalization.
With positive news like the full adoption of Bitcoin by El Salvador and positive developments in the various crypto projects in the market today, there is a good chance that overall market momentum will be up for the better part of 2021 and early 2022.
In August, Cardano was one of the most bullish cryptocurrencies and has good prospects to keep outperforming the market for 2022.
Cardano’s recent rally has been pegged on the Alonzo upgrade that is set for September 12th. While the impact of this integration has already been priced in, its implications will be huge for Cardano in the short term.
That’s because this upgrade places Cardano right in the middle of the fast-growing DeFi and NFT markets. This means the demand for ADA is set to go up going into the future. Once one or two projects build on the Cardano blockchain and are a success, it could create an explosion of projects on this blockchain, which is huge in terms of creating demand pressure for ADA.
For context on how big of a deal this is, one needs to look at Ethereum. The ICO mania of 2017 and the follow-up rise of DeFi projects on this blockchain pushed it from under $10 in early 2017 to highs of $4300 in April 2021. Cardano has the same prospects if there is an upsurge of projects building on it.
The best part is that there is actually an incentive for developers to flock to Cardano. That’s because Cardano is designed for scalability, and its transactions are a lot more affordable than Ethereum transactions.
On-chain Cardano can handle up to 200 transactions per second. Off-chain, through its 2nd layer solution called Hydra, it can go much higher. Stake pools create the hydras, and each hydra can handle up to 1000 TPS. In theory, this means Cardano can handle hundreds of thousands if not a million transactions per second.
This is a big deal. There is a real need for scalability and affordability if the recent developer dash to Solana is anything to go by. In a short time, Solana’s price is up 40X due to the exponential growth in NFTs and DeFi on the platform.
So, how high can Cardano go in the short term? While there is no easy way to tell what direction crypto can take short term, its recent price action is a good reference point.
ADA went from a little over $1 to over $3 based on an anticipation of smart contracts integration. Once the integration happens and investors notice actual use picking momentum, anything between $5 and $10 is within reach in 2021 or early 2022.
Of course, these returns are unlikely to make someone investing $100 rich. That opportunity is gone for most cryptocurrencies. However, for someone with, say, $50,000 to invest, Cardano has the potential to turn that amount into $300k or more between now and Q1 of 2021. That’s a considerable amount anywhere in the world.
Solana has already made a lot of investors rich this year, but it’s only getting started. That’s because by its nature, Solana is attractive to DeFi projects, and to creatives looking to mint NFTs.
Solana’s edge is in the way it operates. While other PoS and PoW networks require communication between nodes/miners to complete transactions, Solana is different. Transactions are instead cryptographically time-stamped on the blockchain.
This allows Solana to achieve speeds of up to 50k transactions per second. Solana’s transactions are very affordable too and are below $0.01 per transaction.
These metrics have seen Solana rally 40x this year, as it quickly becomes the platform blockchain of choice for investors who want to build next-generation DeFi projects.
Since the number of projects building on Solana will only increase, it is safe to postulate that the demand for SOL will only grow, not just in 2021 but for years to come.
If its price action recently is anything to go by, then there is a good chance that Solana could close 2021 at over $1000 a coin.
Besides the growing demand for SOL in DeFi and NFTs, there is news of potential for coin burn for SOL. If it happens, amidst the current exponential demand growth, Solana could easily test prices above $1000 within the year or in early 2022. It even has the potential to reach Ethereum prices if a token burn happens.
In essence, anyone who buys a sizeable number of SOL today stands a good chance of growing their wealth exponentially in a very short time.
As for rich, well that depends on what a person calls rich. If one only has $1000 to invest, well they will turn a profit, but it won’t make them a millionaire. However, for someone who has the resources to convert a whole Bitcoin or roughly $50k into Solana, then this is one crypto that can make you a millionaire or get you close to millionaire status.
Cryptocurrencies That Could Make you A Millionaire In 2023
For someone who hopes to make wealth in crypto by 2023, the focus should go beyond news, and more towards a crypto’s core fundamentals. Going by this metric, the three discussed above hold the potential to make an investor rich.
Many others stand out but may need one to make a considerable investment for one to make a million or anything close to it.
For instance, there is a huge potential that Ethereum could trade at anything between $15000 and $20000 in the next two years. It is in the process of an upgrade that will likely entrench its position as the top platform blockchain.
Besides, with the coin burn feature that was introduced with the London fork, demand and supply dynamics will only play in Ethereum’s favour.
Unfortunately, you need to be rich already to make a million or anything close by from Ethereum. That’s because one would need to put in well over $300k as their initial investment.
The good news is that many other solid projects hold lots of potential, and their prices are within reach.
Chainlink is currently trading at a little over $28, and based on its fundamentals, can easily rally to over $1000 a token in the next 2-years or by the very end of 2023. This means a modest investment in Chainlink today can turn into a million.
The thing that gives Chainlink such potential is its dominance in the decentralized oracles space. Chainlink has over 60% of this market, and its share is growing.
Pretty much all major smart contracts that need reliable input and output data feed use Chainlink.
Chainlink is so good at what it does, that some projects have in the past used its competitors, but reverted back to Chainlink after getting compromised. Its growing dominance will play positively into its price dynamics long term.
At the same time, Chainlink is continuously innovating to become for users. For instance, it recently introduced hybrid smart contracts that will enhance its scalability without compromising on data integrity.
These are factors that make $1000 per link a possibility in such a short time.
Axie Infinity rarely gets much hype, yet it continues to rise up through market cap ranking. Axie is now the 42nd largest cryptocurrency by market cap. If its fundamentals are anything to go by, then Axie has the potential to trade at over $400 a token at some point in the next two years.
This project is revolutionizing gaming by not only decentralizing it but also making play-to-earn viable. It has significantly opened up the market for gaming NFTs and is now home to the most expensive NFT collections in the world.
Considering that gaming is a large and high-growth market, it then follows that the intrinsic value of Axie Infinity can grow and generate considerable wealth in a few years.
One Cryptocurrency That Could Make you A Millionaire In 2025
For true crypto believers, the period between 2023 and 2025 would be considered short-term. In this period, many cryptocurrencies discussed above can make an investor a millionaire if they buy now and HODL.
However, aside from these five, there is one that looks like a pretty sure bet for one to hit millionaire status by 2025, and that’s Bitcoin.
Bitcoin may feel like it’s a little too expensive now, but if one has the resource to buy about 2 BTC, they can easily hit millionaire status or get close to it by 2025.
The rationale is simple, Bitcoin adoption is growing, but its supply growth is slow. This has everything to do with its periodic block halving. In 2020, the Bitcoin block halving saw block rewards drop to 6.25. The impact was a price rally from $10k to $64k. There are projections that Bitcoin is yet to peak after this halving and that it could still test anything between $100k and $175k by 2022.
The next Bitcoin halving is in 2024, and it will lower Bitcoin’s block rewards to just 3.125 BTC. Considering how fast adoption is happening, this could easily push Bitcoin to over $500k per coin. This means there is a potential of anyone holding just 2 BTC to become a millionaire in the next 5-years.