Top 7 promising cryptocurrencies in 2022
Despite the fact that the value of the main cryptocurrency fell by the end of last year, 2021 was generally successful for the crypto market. During this time, bitcoin grew by 64%. In doing so, the coin set an all-time high of $69,000, and the capitalization of the entire sector exceeded $2 trillion for the first time in November. But does this mean that digital assets will continue to rise in value compared to regular money this year? What dynamics to expect from the crypto market this year and which cryptocurrency is worth investing in.
Bitcoin (BTC)
Despite bitcoin’s drawdown at the end of 2021, this digital coin remains a leader in the cryptocurrency world. Bitcoin has been on the market since 2009 and has already proven to be one of the most reliable cryptocurrencies for investment. It is no longer possible to buy this cryptocurrency at a low price, so any slump in the value of BTC can be seen by investors as an opportunity to buy this digital coin at a lower price.
Ethereum (ETH)
Etherium is one of the best cryptocurrencies to invest in, ranking second in capitalization after bitcoin. Today, the market capitalization of this digital coin is $377,855,502,904 and trading volume is $28,207,246,654. Technologically, this digital coin offers a variety of uses for it. The main function is exchange automation. Ethereum smart contracts enable two parties to make fast and secure transactions without intermediaries, and also limit bureaucracy as much as possible.
The creation of new business models and decentralized applications further increases the long-term growth potential of this cryptocurrency.
It is noted that because of the fundamentality of the project and the excellent roadmap for 2022, as well as an important update of Ethereum to version 2.0 next year, the growth in the value of the coin will continue.
According to experts, the value of Ethereum may reach $8000-10000 by the end of 2022.
Cosmos (ATOM)
If you want to invest in cryptocurrency, Cosmos (ATOM) is considered one of the most reasonable decisions. Today, the market capitalization of the project is $8,624,134,049 and the trading volume per day is $758,246,885.
The blockchain on which this coin runs is rightly called “blockchain 3.0.” Cosmos is a crosschain solution that allows all blockchains launched in the Cosmos ecosystem to interact both with each other and with external networks such as Ethereum and Bitcoin.
More than 250 decentralized applications have already been launched in the Cosmos network, and their capitalization exceeds $70 billion. The Cosmos infrastructure is used by Binance Smart Chain, Qredo, OKExChain.
Cosmos cryptocurrency has no analogues. The only exception may be Polkadot, which offers the creation of parachains on its own.
Experts believe that this ecosystem has excellent growth potential in the future, as leading cryptocurrencies are already using the technology offered by the Cosmos project. In this regard, the price is predicted to rise to $40-50 by the end of 2022. Recall that Cosmos (ATOM) now costs $30.35.
Solana (SOL)
Solana was developed to support the operation of decentralized finance (DeFI), decentralized applications (Dapps), and smart contracts. Solana runs on the unique hybrid protocols Proof of Stake (PoS) and Proof of History (PoH), which make transaction processing fast and secure.
SOL is a token created to run on the Solana platform. SOL’s value growth began after the project participated in an Initial Coin Offering (ICO) in 2018. At that time, Solana sold almost 80 coins. At that time, the value per token was 4 cents. Investors are now paying $117.39 per coin. The SOL token has a market capitalization of $38,010,676,434 and a 24-hour trading volume of $2,500,219,132.
With SOL tokens, platform users can access the Solana blockchain, which enables the creation of decentralized programs – so-called Dapps.
Solana is much faster than its well-known competitor Ethereum. Solana processes about 3,187 to 65,000 transactions per second. Ethereum only processes 15 transactions per second, while bitcoin processes five to seven.
Solana creates one block of information on the network in 0.4 seconds, Ethereum in 10 seconds, and Bitcoin in 10 minutes. The commission that miners pay depends on the speed of the work. Accordingly, Solana’s commission is much lower – less than one cent per transaction, while Ethereum’s is $25 to $53, depending on the cost of electricity. On the Solana blockchain, developers have created the Audius streaming service, the DeFi Land simulation game, the Sabre cryptocurrency exchange, and about 900 other programs. According to the State of the Dapps tracker, Ethereum has almost 3,000 such programs.
Polkadot (DOT)
Polkadot (DOT) is considered one of the most promising cryptocurrencies for investment in 2022. It has become popular because it provides investors with a variety of solutions by leveraging multiple blockchains from a single network. It is estimated that cryptoinvestors can make high profits from Polkadot, as experts believe that the value of Polkadot cryptocurrency will increase significantly when parachemes are launched sequentially. An achievable target for 2022 is a price range of $40-60.
DOT currently stands at $22.73, with a market capitalization of $22,536,546,667 and 24-hour trading volume of $1,529,062,811.
Binance (BNB)
Binance cryptocurrency trading platform is in great demand all over the world. This platform is designed to trade cryptocurrency and minimize trading commissions. Binance is known for providing its users with fast and secure transactions.
BNB is Binance’s own token, which is used to pay fees for the exchange’s services. Many experts predict that users who bought the BNB token now will make huge profits, as the price of the coin could reach $1,000 in 2022.
BNB has a market capitalization of $70,972,186,832. While its price was only $0.10 in 2017, it rose to $428.63 on February 9, 2022. So, if you want to invest in cryptocurrency, you should pay attention to this digital coin.
Cardano (ADA)
Cardano (ADA) is considered one of the best cryptocurrencies to invest in. Cardano cryptocurrency has a capitalization of $40,252,702,248 as of February 2022, making it the 7th best cryptocurrency in the world. The main reason for its popularity is that it can be used in the DeFI space. Blockchain-based smart contracts can work to help capture transactions between participants without intermediaries with all the obligations and transparency.
Conclusion
If you decide to invest in cryptocurrencies this year, don’t forget about the high volatility of digital coins. Strong fluctuations in value can bring big profits as well as lead to a total loss of your funds. That’s why experienced traders and investors recommend diversifying your assets by buying different coins. Also, before investing in cryptocurrency, you should analyze the market to know which trend is prevailing in the cryptocurrency market right now. After the analysis, you will be able to decide on a strategy and understand which cryptocurrency to invest in.