Which 5 Cryptocurrencies Are Going To Explode In 2022?
Planning to invest in cryptocurrencies in 2022? Want to stay ahead of the crypto trends? Then you’re probably asking yourself:
“What cryptos should you invest in in 2022? Will 2022 be a good year to invest in cryptocurrency assets? Which cryptos will be the best return on investment in 2022?
Let’s take a look!
2022 is just a few months away, so any cryptocurrencies that could explode then should have some big news coming up. Alternatively, their adoption should be growing at an accelerated rate, and that should have started showing by now. Of course, they should also be reputable projects. The last thing anyone wants is to invest in unknown projects out of the greed of getting rich quickly.
While one can get rich off such projects, there is also a significantly higher risk of losing it all, if such a project gets hacked, rugpools, or just crashes in value. Below are some high-quality crypto projects that have an excellent potential to explode in 2022 and make investors rich.
Top 5 cryptocurrencies to consider in 2022
Before we take a closer look at the best cryptocurrencies in 2022, here are our top 5 picks:
- Dogecoin (DOGE)
- Solana (SOL)
- Ethereum (ETH)
- Cardano (ADA)
- Binance coin (BNB)
Dogecoin hasn’t made much of a recovery since the crypto market crash of May. However, considering the big news coming up for this crypto in 2022, this is actually a good thing. It’s giving investors time to accumulate on Dogecoin.
The big news coming up is the Doge-1 mission that is scheduled for Q1 of 2022. This is a lunar mission by SpaceX that aims to figure out the application of cryptocurrencies in interplanetary commerce.
So, why is this a big deal? Well, consider the fact that space missions draw the attention of big media networks. Just recently, the world was treated to the space tours of Jeff Bezos and Richard Branson.
Considering that SpaceX and its founder Elon Musk are big names in the space industry, this mission will likely draw in lots of media attention. This means even someone who doesn’t know much about cryptocurrencies will be introduced to Dogecoin for the first time ever.
The strong media attention that this event will attract is likely to create FOMO around Dogecoin and drive up the price for those already in crypto.
How high Dogecoin can go during this space event is anyone’s guess. However, if Dogecoin’s price rally in 2020 and early 2021 is anything to go by, then there is a pretty good chance that it could easily rally by thousands of percentages.
In the last Bull Run, Dogecoin rallied by over 10,000%. This had nothing to do with its fundamentals though. It was all powered by Elon Musk’s tweets about it.
This time around, Dogecoin is being used to test the viability of cryptocurrencies in interplanetary commerce. Considering that space is humanity’s next frontier, this could be a big deal if it turns out to be a success.
As such, Dogecoin gains by 1000s of percentages within Q1 of 2022 is actually a possibility. Such a move would make anyone who invests in Dogecoin now rich.
Its potential would be enhanced by the level of adoption that could happen in the course of this event. Companies looking to market themselves could jump on the Dogecoin train, in the hopes of creating visibility to their own brands.
A confluence of these factors makes Dogecoin a top contender for cryptocurrencies likely to explode in 2022.
Solana is one of the big cryptocurrency wonders of 2021. It came out of nowhere and is now emerging as a top contender to take on Ethereum in the platform blockchain space.
Its returns have been quite phenomenal too and has emerged as one of the top crypto performers of the year. While most cryptocurrencies are yet to retest their all-time highs after the May crash, Solana has made new highs.
The best part is that Solana is just getting started if the factors behind its rally are anything to go by.
Solana’s rise has been driven by an explosion of DeFi and NFTs on its platform. Now that it is in the top 10, a lot of people who did not know about it before are now aware of Solana. This means that it stands to draw in more DeFi projects and NFTs going into the future.
Solana’s competitive advantage is in its scalability and transaction costs. At the moment, it is pretty much unmatched on this front. Solana can handle over 50,000 transactions per second, at prices as low as $0.0001 per transaction. This means it outcompetes Ethereum multiple times and is also much more efficient than centralized systems such as Visa.
In essence, going into the future, it stands to draw in lots of projects that don’t want to deal with the scalability bottlenecks that come with Ethereum. Even with the entry of Ethereum 2.0, Solana will still have an edge, so its long-term growth is pretty much guaranteed.
Since the growth in usage of this blockchain creates even more demand for SOL, then it means that the value of this crypto will only go up long term.
In just a month, Solana has gone from lows from under $50 to over $200. If there is an explosion of projects building on this blockchain, then even $1000 or more is possible within 2022.
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Ethereum is another crypto that has the potential to explode in value in 2022. The number two crypto recently hit $4000, and while it has been in a correction for the last few days, its momentum is up.
Going into 2022, Ethereum can surpass its all-time highs and possibly make new highs of $10k or higher.
Ethereum’s prospects have a lot to do with its upgrades to Ethereum 2.0. All through 2021 Ethereum has been in the process of a transition to Ethereum 2.0, which will make it more scalable, and energy-efficient.
One of the most important aspects of this upgrade was the London fork that was done on August 5th.
The London fork introduced a feature that is making Ethereum deflationary, and this could see Ethereum rally in value significantly going into the future. The London forked eliminated the bidding system for gas, where those who wanted their transactions to go first to pay more gas.
Now it’s an algorithm that takes a total of the aggregate demand, then sets the base price. The ETH generated in these transactions is then destroyed instead of being distributed to miners.
Essentially, this guarantees that as the usage of the Ethereum blockchain grows, demand will increasingly outdo the supply. This is huge in terms of Ethereum price appreciation going into the future.
Considering that Ethereum is the number one platform blockchain in the market, it’s pretty much guaranteed to record growth in usage going into the future.
Besides its improving technical metrics, Ethereum has a lot going for it in terms of institutional adoption.
It is the only crypto closest to Bitcoin in terms of institutional uptake. This adoption will only grow as more Ethereum-based financial instruments such as ETFs come up.
In the US, several top funds have filed for Ethereum ETFs. These ETFs are also there in many other top economies such as Canada. This creates an even higher demand for Ethereum that could see its prices test new record highs in 2022.
Bitcoin is also a factor too in Ethereum’s potential in 2022 since they tend to go in tandem with each other. The last time Bitcoin rallied to $64k, Ethereum rallied from a little over $200 to highs of $4300.
Using this metric, then Ethereum has some pretty good odds in 2022. That’s because there is a good chance that Bitcoin can peak at prices above $100k either within 2021 or at some point in 2022.
The basis for this is its growing adoption. Recently, El Salvador started using Bitcoin, and the number of BTC investment instruments is growing. With its block rewards now down to 6.25, the demand pressure could see it peak out at above $100k short term.
If it does, then Ethereum trading at prices above $10k is highly probable within reach at some point in 2022. For someone who gets in now, when it’s still under $4k, that’s an impressive rate of return.
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Cardano holds a lot of potential to explode in value going into 2022. It has just integrated smart contracts on its platform.
This means that going forward, it can compete with Ethereum, and that’s a big deal. That’s because everything from decentralized exchanges to decentralized lending platforms can now build on top of Cardano.
To understand why this is a big deal for Cardano, one just needs to look at how successful Ethereum has become so far. Ethereum is one of the biggest successes in crypto’s history. It went from a few pennies when it launched to over $4300 at its peak in 2021.
This success has a lot to do with the ERC-20 standard and the fact that over the years, there has been an explosion in the number of projects building on top of this project. Cardano has the same prospects going forward. As projects start building on top of this blockchain, the demand for ADA will go up and its price potential.
While Ethereum is already the dominant platform blockchain in the market today, Cardano is technically superior, and this could play in its favor.
Cardano falls under what is called 3rd generation blockchains. Bitcoin is the first generation, while Ethereum is the 2nd generation. The key difference between these generations is the ability to scale.
While Ethereum can handle just about a dozen transactions per second on-chain, Cardano can handle over 200. Cardano is able to achieve this without compromising on security or decentralization, all thanks to its Ouroborus Proof-of-Stake algorithm.
Cardano is also attractive because it uses the Haskell programming language. This is a language that is designed for functional correctness. Essentially, this means developers can build highly accurate smart contracts on Cardano.
Given how aggressive hackers have exploited weaknesses in smart contracts, this could play a role in its adoption, especially in the development of highly sensitive financial or even government contracts.
If the uptake of Cardano in the development of smart contracts gains traction in this year, then there is a good chance that its price could rally going into 2022. The potential for Cardano to hit double digits in the course of 2022 is quite high.
5. Binance coin
Binance coin is another gem that has the potential to explode in 2022. It is already one of the top performers in 2021, and if the market remains bullish in 2022, then Binance coin could trade at over $1000.
Binance coin’s potential comes from the fact that it is the power behind the Binance ecosystem. The Binance ecosystem is quite huge, and it ranges from the Binance exchange to the Binance Smart Chain.
On the Binance exchange, BNB is the one primarily used for paying fees. For an exchange that transacts billions of dollars worth of cryptocurrencies daily, the demand for BNB is always high.
Then there is the Binance Smart Chain which has emerged as one of the biggest competitors to Ethereum in the development of smart contracts. Since one needs Binance coin to create smart contract contracts on the Binance Smart Chain, it goes without saying that as BSC grows, so will the overall demand for BNB.
While the demand for BNB continues to grow at an exponential rate, its supply has been contracting over the years. This is due to its coin burn feature. Binance burns BNB every quarter, and this has helped drive up its price over the years.
A while back, the exchange announced that it would accelerate the coin burn over the next 5 to 8 years instead of the originally planned 27 years. This means in coming quarters; it could burn BNB at a faster rate than it has ever done before. Under the current environment where its demand is growing fast due to the BSC, its price could easily rocket quickly.
These factors make it one of the best cryptos to hold for anyone who wants explosive returns not just in 2022 but for many years to come.
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