The crypto space saw its annual value get triple last year with various other niches in the blockchain industry enjoying the spotlight. After Facebook decided to jump into the new age of the Internet and become Meta many others such as Nike, Adidas, and Tech Mahindra followed suit. Various cryptocurrencies starting from Bitcoin, Cardano, Ethereum, Solana, Terra saw new all-time highs in 2021.
Despite many S&P 500 companies doubling up their annual total return in 2021, it was a cryptocurrency that stole the show. The aggregated value of digital currencies as of January 17, 2022, stood at $2.23 trillion according to CoinMarketCap which is 191% above what it was at the beginning of 2021. The amazing and consistent performance of the top cryptocurrencies by market capitalization, Bitcoin and Ethereum, and the increased adoption of the crypto space led to this surge in value. According to fintech experts, despite the high volatility, opportunities in the crypto space are still knocking at doors with new crypto projects and developments that the crypto networks are looking forward to in 2022.
As we move into a New Year, the hopes are definitely high for cryptocurrencies. Here is a list of the best 5 cryptocurrencies in 2022 to watch out for.
Best 5 Cryptocurrencies in 2022 to Watch Out for According to Fintech Experts
1. Decentraland (MANA): Top Metaverse coin
Decentraland (MANA) is a virtual reality platform backed by the Ethereum blockchain network allowing users to experience, create and monetize their content. After Meta, formerly known as Facebook, pioneered its way to Metaverse, the entire industry received quite an attention. This also put many cryptocurrencies into the spotlight that have been a part of Metaverse way before Mark Zuckerberg decided to take this step. One of them is Decentraland (MANA).
In the MANA ecosystem, one can participate in games or can buy properties and have a virtual experience. After the announcement by Zukerberg, MANA experienced a meteoric rise in its value. The all-time high value of Decentraland (MANA) was $5.90 on November 25, 2021. Wondering which is the best metaverse coin to invest in today? One must consider Decentraland (MANA) before making a choice.
Additional Read: MANA vs SANDBOX
2. Ethereum (ETH): ETH 2.0 might change the game forever
Ethereum, the second-largest cryptocurrency by market capitalization cannot be ignored after its terrific rally in 2021. Although it is often criticized for the congestion in the network that results in low transfer rates and high gas fees, Ethereum has still got a long way to go. Ethereum remains the preferred network for several blockchain-based games as well as other DeFi and NFT platforms. More than 90% of NFT transactions also take place in Ethereum.
Ethereum is also going to see a major update in 2022 called Ethereum 2.0 where it will successfully migrate from proof-of-work mechanism to proof-of-stake. The foundation to the same was laid back in 2020 and it also underwent several updates in 2021. London Hard Fork and Ethereum Altair Upgrade were some of them. ETH2.0 shall increase the network capacity and will also enhance the scalability of the platform. It also aims to reduce the high gas fees which is one of the primary reasons why investors migrate from the network.
This new upgrade of Ethereum also focuses on less energy consumption which is also a key point for many investors around the globe who have environment-related concerns. The closing ethereum price today is $3346.88 (As of 16 January, 2022)
Additional Read: Deep Dive into How Ethereum Works?
3. Cardano (ADA): Most development activity in 2021
Cardano is a proof-of-stake blockchain protocol that intends to help changemakers and visionaries to bring a positive global change. It is one of the fastest evolving projects in the cryptocurrency space with a team that conducts extensive and regular research publishing its results in peer-reviewed academic papers.
Cardano’s team focuses on a scalable, efficient, and secured decentralized network with a systematic approach to blockchain development and research. It has significantly grown in the past few years with its native token ADA being the fifth-largest cryptocurrency by market capitalization. Undergoing several upgrades, Cardano currently uses a unique architecture that deploys a dual-layer system that is different from usual blockchain platforms. The CSL layer allows the ADA holders to send as well as receive transactions instantly at a very low fee while the computational layer (CCL) serves as the foundation to the entire blockchain system.
Cardano saw three lower highs and nearly two equal lows around $1.20 value in December 2021. Experts believe the currency to be currently in a consolidation zone before it goes high again. According to CEO Charles Hoskinson, the cryptocurrency is expected to do good as the focus of the team is to improve its application process rather than just chasing hype.
Additional Read: How to invest in Cardano(ADA)
4. Solana (SOL): Ethereum Killer
The shortcomings faced by Ethereum have given rise to a new group of cryptocurrencies that have the same value proposition as Ethereum but have overcome the adversities faced by it. Solana, popularly known as Ethereum killer is often mentioned as one of the strongest and most serious challengers to Ethereum. One of the most essential innovations that Solana comes with is the proof-of-history (PoH) consensus mechanism. This provides greater scalability to the protocol that in turn enhances the usability of the network.
Solana is also famous among investors and traders due to its incredibly short processing and transaction times. The hybrid protocol leads to substantially decreased validation times for both smart contract execution as well as transaction. Due to its super-fast processing time, Solana has attracted interest from institutional traders. Solana also saw an all-time high in 2021 of $260.06 and the closing Solana(SOL) price today is $147.98 (As of 16 January, 2022).
Solana intends to serve both enterprise customers as well as small-time users. The protocol has been designed such that all transactions have low costs without the scalability and processing getting hampered. 2021 was indeed a year for Solana as it has become the seventh-largest cryptocurrency by market capitalization surpassing Cardano. It saw an impressive bull run around mid-July 2021 with a surge in price by 700%. This came after the launch of the Degenerate Ape NFT collection. However, the major surge in price came in November helping Solana create new standards for itself.
5. Polkadot (DOT): 300 projects to be built on it
Polkadot is a multichain open-sourced protocol that connects a network of specialized blockchains allowing cross-chain transfer of data or assets letting blockchains be interoperable with each other. Polkadot provides a foundation to the decentralized internet that we commonly call Web3.0 today. Polkadot is capable of connecting private as well as public chains, oracles, permissionless networks, and future technologies letting them function trustlessly to share information and transactions through the Polkadot Relay chain.
The purpose of the native token DOT is to serve three clear objectives that are facilitating governance, staking for operations and security as well as bonding tokens to connect parachains.
Polkadot was one such cryptocurrency that saw a surge in its prices in 2021 reaching an all-time high of $55. Its YTD has been 159% for 2021. Experts believe that Polkadot is a good asset class for long-term investment since more than 300 projects are being built on this network which is indeed a good indication of the strength of the technology for long-term benefits.
Additional Read: How to Invest in Polkadot(DOT)
Best 5 Cryptocurrencies in 2022 to Watch Out for According to Fintech Experts: Price Analysis
|Cryptocurrency||MarketCap (January 17, 2022)||ATH (2021)||Circulating Supply|
|Decentraland (MANA)||$5,507,925,056||$5.90||1.82B MANA|
|Ethereum (ETH)||$389,852,175,346||$4,891.70||119,195,503.81 ETH|
|Cardano (ADA)||$51,652,616,664||$3.10||33.53B ADA|
|Solana (SOL)||$45,007,845,085||$260.06||314,152,849.68 SOL|
*All Prices are latest by January 17, 2022.*
Stay updated with the latest cryptocurrency news & updates on our Daily Crypto News section.
Summing it Up!
After an amazing round of ups and downs in 2021, investors and traders are looking forward to 2022 in terms of crypto gains and better returns. However, it becomes extremely difficult for anyone to choose the best cryptocurrency to buy in 2022 among thousands of them. In this article, we have done extensive research to articulate the best 5 cryptocurrencies in 2022 to watch out for according to fintech experts across the globe. One must consider these cryptocurrencies before making their choice for the year, however, one must not forget to DYOR (Do your own research) before investing in any of them.
Stay updated with the latest happenings around the crypto space and boost your crypto knowledge with CoinDCX Blog. Start your investing journey today with the CoinDCX app, India’s simplest and safest crypto investment app.
Read our most recent articles:
- Cardano/Bitcoin(ADA/BTC) Technical Analysis
- Uniswap vs Pancake Swap: Comparative Analysis
- FTX Token(FTT) Price Prediction
Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalisation indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.