Which coins and projects have great potential this year? In this article we introduce you to our top 5 cryptocurrencies for the year 2022.
Even if the year 2021 eased somewhat towards the end from a price point of view, the crypto market has come an unbelievable way. Bitcoin has roughly doubled its value, Ethereum and other Altcoins were able to increase their value even more significantly.
In this article, we introduce the top 5 cryptocurrencies that we believe will be important in 2022. In addition to long-established cryptocurrencies, some are less in the spotlight.
Which cryptocurrency will explode in 2022?
Which cryptocurrency is going to explode? Which cryptocurrencies should I buy in 2022? Which cryptocurrencies have potential? These are the questions that concern many people interested in crypto.
Beginners in particular, are often prone to projects that promise high profits at the beginning. Understandable when you consider the price gains that are possible through early entry into crypto projects.
In advance, however, we can tell you: It is simply not possible to give a real purchase recommendation.
Nobody would have dared to believe that cryptocurrencies like Shiba Inu would increase by several thousand percent from January. Therefore, Shiba Inu (SHIB) was certainly not a contender for Top Cryptocurrency 2021.
However, this does not mean that it is impossible to give a certain market assessment. The year 2021 was not only of great importance from a price point of view because it can be seen that the crypto market has also changed in terms of its external presentation.
In 2021, the fundamental foundations for the mass adoption of cryptocurrencies were laid.
So things are moving forward for the entire cryptocurrency sector. We assume that the development will continue in the coming year 2022. But which cryptocurrency will explode in 2022?
Even if we cannot give you a one hundred percent correct answer to which cryptocurrency will achieve particularly high profits in 2022, there are some price criteria that you can use to identify cryptocurrencies with potential.
Top 5 cryptocurrencies in 2022
In order to find the top cryptocurrencies in 2022, you have to deal extensively with many projects. The keyword, in this case, is DYOR (Do Your Own Research).
Always check which team is behind a project and whether the project creates trust. Is there a white paper or at least evidence to support the claims on a project’s website that promises high returns?
What is the platform's goal, and does it really solve an essential problem? Would you use the product yourself? You see - there are numerous factors that you have to consider if you want to find cryptocurrencies with potential.
In the following, we would like to name five cryptocurrencies that you should watch over the next year. In addition to some high-profile cryptocurrencies, some lesser-known cryptocurrencies are also found here.
Top cryptocurrency #1: Bitcoin (BTC)
Bitcoin is still one of the top cryptocurrencies in our eyes. There are many reasons for this. Bitcoin is the largest and oldest cryptocurrency on the market. A lot has changed for cryptocurrency in 2021.
Meanwhile, more and more institutional investors swear by Bitcoin – MicroStrategy has acquired more than 100,000 BTC, and Tesla has also invested 1.5 billion US dollars.
However, the biggest step towards mass adoption so far is the introduction of Bitcoin as legal tender in El Salvador.
The taproot upgrade was also important through which Bitcoin could serve as a platform for numerous smart contracts.
In 2022, the price will also clarify some questions about the Bitcoin cycle. Are we in the previously known four-year cycle or have we already reached a supercycle?
The coming year will therefore play a very special role. Bitcoin is no longer an insider tip – but BTC will set the direction of the crypto market. The goal of US $ 100,000 envisaged by many for 2021 will be more present than ever in 2022, with a starting value of around $50,000.
Analysts like Michael van de Poppe or PlanB consider this target price to be realistic. The stock-to-flow model is also still intact, according to PlanB. But regardless of the price of the oldest and largest cryptocurrency, the long-term effects of the measures taken in 2021 will be felt in the coming year.
These include media and institutional interest, the move by banks such as the Commonwealth Bank of Australia, the crypto ban in China and the resulting redistribution of Bitcoin mining centers, the rapidly increasing number of private investors who are clearly long-term hodlers want to position and just the introduction as the official currency in El Salvador.
For us, the fact is that Bitcoin continues to be the cryptocurrency par excellence – so nothing will bypass Bitcoin in 2022 either.
Top cryptocurrency #2: Ethereum (ETH)
The number two Ethereum (ETH) will also play a decisive role again in 2022. Work on the Ethereum 2.0 upgrade is in full swing. At the same time, the competition for Solana (SOL), Cardano (ADA), and Co. is making new progress.
Ethereum, like Bitcoin, has finally established itself. While many Altcoins at that time still pursued the goal of creating the better Bitcoin, in recent years, projects have come onto the market that wants to develop the better Ethereum. After all, with the increasing number of users and applications, Ethereum is increasingly struggling with scaling problems.
It will be decisive to what extent Ethereum gets this solved by upgrading to Ethereum 2.0.
However, Layer 2 solutions such as Polygon also ensure growth at Ethereum.
Ethereum is still the most important platform for decentralized applications (dApps) and the clear market leader in the DeFi and NFT sector, regardless of all the difficulties. Institutional interest in decentralized finance (DeFi) is growing – this trend is likely to continue in the coming year. The signs couldn’t be better for Ethereum.
Ethereum also proves to be relatively stable more and more often when the market experiences major corrections. Of course, ETH is not completely spared. But the lower volatility than with other Altcoins also distinguishes ETH as a “safe” crypto investment.
Nevertheless, the upgrade to Ethereum 2.0 will be in the foreground, even if it should not be completed until 2023. If you are interested in how the Ethereum price could develop, it is worth looking at our Ethereum prediction.
Top cryptocurrency #3: Polygon (MATIC)
Polygon (formerly Matic Network) is a Layer 2 solution for the Ethereum blockchain. Since Ethereum continues to struggle with great difficulties in scaling, Polygon was developed to solve this problem.
Polygon has many sides, shapes, and uses, and it promises to provide an easier framework for building interconnected networks.
Polygon wants to help Ethereum grow in terms of size, security, efficiency and usefulness, thereby enabling developers to bring products to market that much faster.
MATIC is the cryptocurrency in the polygon network and is used as a payment unit between the participants who interact with each other within the network.
In fact, the biggest threat to Polygon, at least in short to medium term, is the final completion of Ethereum 2.0 and solving the scaling problem.
However, it will take a little more time to resolve all difficulties one day.
This is exactly what Polygon has to offer.
Top cryptocurrency #4: FTX Token (FTT)
The FTX crypto exchange recorded great growth rates in 2021 – just like almost every company in the crypto space. Following the example of Binance (Binance Coin, BNB) or crypto.com (CRO Token), the FTX Exchange has also launched its own token.
The token’s utility is reflected, for example, in reduced trading fees on the crypto exchange or as security for futures positions. You can also earn interest with the FTX token and even create your own non-fungible tokens (NFT) on the Exchange.
Behind the FTX Exchange and FTT are Sam Bankman-Fried and Gary Wang. The 29-year-old billionaire founded the quantitative trading company Alameda Research together with Gary Wang in 2017.
Alameda Research is a quantitative trading company that manages over $ 1 billion in digital assets.
The popularity of the FTX exchange is growing rapidly in the United States. The Super Bowl in particular, will increase awareness in 2022. The Exchange has secured an advertising slot during the sporting event – this is usually followed by around 100 million people in the USA in front of their screens.
The Exchange also agreed, for example, on a sponsorship deal with the gaming startup Yield Guild Games. An FTX grant enables 137 players from developing countries to start playing the NFT game Axie Infinity.
FTX is currently doing a lot right.
We therefore assume that the FTX token will also gain in value as the crypto exchange becomes more well known.
Top cryptocurrency #5: Fantom (FTM)
Fantom is a decentralized open-source smart contract platform for decentralized applications (dApps) and digital assets. This means that Fantom is initially just one of many blockchain networks built to offer an alternative to Ethereum.
The Fantom blockchain mainnet went live in December 2019. Its network architecture intends to provide a workable solution to the blockchain trilemma by offering a steady balance between scalability, security, and decentralization.
FTM is currently the cryptocurrency with the smallest market capitalization in this article. Due to the growing DeFi and NFT market and the increasing need for interoperability, in our opinion, the Fantom ecosystem will also be among the beneficiaries, and the FTM token will be able to grow accordingly.
Conclusion: Which cryptocurrencies should I invest in 2022?
Even if we have listed five cryptocurrencies here that we believe have the potential to reach new milestones in the coming year, this is not investment advice.
There are now more than 10,000 projects in the cryptocurrency space. The number should expand into six-digit areas in the foreseeable future, but only a handful of these projects are really promising. After extensive research on which cryptocurrency you should invest in, nobody can tell you better than you.
Of course, more than five cryptocurrencies have the potential to take-off (further) in 2022. Therefore, you should always do your own research (keyword DYOR).
In any case, cryptocurrencies should only make up part of the portfolio in a diversified portfolio.