Cryptocurrencies are more likely to thrive in 2022 than they were in 2021. Existing and upcoming cryptocurrencies attract much attention from crypto investors who want to put money into their digital wallets. Thus, there are a lot of different cryptocurrencies that you must watch before we enter 2022.
Following a steep drop from it’s all-time high of US$68,000, Bitcoin, the most popular cryptocurrency in the global cryptocurrency market, has shown notable indications of recovery. Bitcoin payment systems have been created by several companies in various sectors throughout the world. Even the governments have noticed El Salvador announcing plans to construct Bitcoin City shortly. Moreover, crypto investors have realized that Bitcoin has the most growth potential in 2022 due to its exposure.
According to crypto investors, Ethereum is anticipated to overtake Bitcoin in the cryptocurrency market soon. Digital wallets will be filled with Ethereum money since Ethereum is an innovative contract network that provides a stable decentralized environment. It currently hosts a variety of crypto-asset trading and lending exchanges. Ethereum is releasing new versions to the market, such as Ethereum 2.0, to give more efficient services to cryptocurrency investors.
Dogecoin is anticipated to reach a price of US$0.9 in 2022, making it one of the most promising cryptocurrencies. Elon Musk is active in the cryptocurrency sector as both a crypto investor and a crypto price influencer. In the year 2022, this cryptocurrency has the potential to overtake Bitcoin. The cryptocurrency ranking is consistently outside the top ten in 2021. Moreover, a strong group of dedicated Dogecoin cryptocurrency investors is attempting to improve the price in the foreseeable future. Despite its status as a meme coin, Dogecoin has acquired popularity in digital wallets.
Cardano has piqued the interest of cryptocurrency investors as one of the top cryptocurrencies with a bright future in 2022. It has a market capitalization of US$55 billion in 2021, after a steady rise up the cryptocurrency market ladder. 2022 is a make-or-break year for this cryptocurrency, with a price of around US$1.60.
This meme coin or cryptocurrency surged 23 per cent in 24 hours during the last week of November 2021. One million users and one million digital wallets have been registered in the bitcoin business. Because of Elon Musk’s comments, the Shiba Inu has caught the interest of bitcoin investors. For a few days, it was able to take control of Dogecoin. On Uniswap, half of the cryptocurrency coins are stored in a liquidity pool, with the price growth in 2021 being driven by an NFT effort. It is expected to reach US$0.000219 in 2022 with a lot of flexibility.
Binance Coin is one of the world’s most popular cryptocurrency and bitcoin exchanges in terms of volume. This app works on any smart device and allows bitcoin traders to start trading securely and efficiently. With an average daily volume of 2.0 billion and more than 1,400,000 transactions per second, Binance Coin is predicted to have a lot of potential in 2022. This exchange platform offers various services that will benefit crypto investors shortly.
Polkadot is a popular cryptocurrency that, because of its decentralized Web 3.0 blockchain interoperability platform, has the most promising rise in 2022. With the Polkadot network’s economic and transactional scalability, crypto investors will be able to interact with a wide range of blockchains. Moreover, the chains can interact independently thanks to the unique data availability and validity scheme. Furthermore, the money will be employed in three primary ways in 2022: network governance, staking, and bonding.
Solana is a high-speed blockchain that uses both proof-of-stake and proof-of-history techniques. By offering a block explorer, network speed, and stake distribution, it supports the creation of seamless crypto apps. It can process 2,292 transactions per second for US$0.00025 per transaction. Over 400 projects, including DeFi, NFTs, Web3, and many others, are available to crypto investors. As a result, in 2022, it is predicted to be one of the most popular cryptocurrencies.
Due to its issue with AI-powered contract audits, MarketMove is one of the top cryptocurrencies with the most potential in 2022. In 2022, this coin will introduce new features based on decentralized exchange laws to attract crypto investors. MarketMove had a one-trillion-dollar initial supply and is known for being hyper-deflationary. Long-term crypto investors should consider keeping this currency in their digital wallets.
inSureDeFi is well-known for developing the world’s first insurance ecosystem to protect cryptocurrency investors from fraud, devaluation, and scams. This token is recommended for crypto investors who want to apply for insurance shortly, and it is active in digital wallets seven days after purchase. The demand-supply amounts increase as the need for insurance protection grows. Consequently, this is one of the most promising cryptocurrencies for 2022.
Crypto Predictions for 2022
As the crypto market has been in the news throughout the year and now when it’s the end of the year, predictions have also started on different cryptocurrencies. Some of those are –
Ethereum may overtake Bitcoin
Ethereum may not be as well-known as Bitcoin, but it is deserving of recognition. Ethereum is the second-largest cryptocurrency, with its growth outpacing that of Bitcoin. By 2022, if current trends continue, Ethereum may overtake Bitcoin as the most valuable cryptocurrency. This might make Ethereum an attractive alternative for investors looking to diversify their cryptocurrency holdings beyond Bitcoin.
Crypto may be accepted as a payment source.
One of the most fundamental objections to cryptocurrencies is that they are not a legitimate alternative to traditional currencies. Several cryptocurrencies may lose value if this scenario plays out. In 2021, however, the opposite happened, and the trend looks to be continuing into 2022. The feasibility and value of cryptocurrencies such as Bitcoin are likely to grow as more businesses accept them as legal tender.
More countries will legalize Crypto.
In September 2021, El Salvador became the first country to accept Bitcoin as legal tender. According to Alexander Höptner, CEO of the cryptocurrency exchange BitMEX, five or more countries may follow suit in 2022 and accept cryptocurrency as legal tender. If these initiatives succeed, other governments may explore adopting cryptocurrencies as well.
Banks will release their digital currencies.
China has been at the forefront of the push for countries to adopt their digital currency issued by their central banks. To combat the risks posed by current cryptocurrencies, several other countries are considering developing their digital currencies. Countries that administer and regulate their own digital money can avoid existing cryptocurrencies’ wild, decentralized nature.
Investors and Companies may raise their crypto allocations.
Bitcoin is making its way into the portfolios of individual investors and corporations as it grows in popularity. Some financial experts recommend cryptocurrency allocations of a few percentage points, and more organizations are allocating capital to cryptos and digital assets. This kind of allocation shift tends to develop traction on its own, implying that in 2022, more money will flow into cryptocurrencies.
Many cryptocurrencies will have no value.
While overall trends toward cryptocurrency acceptance look to be increasing, with hundreds of cryptos vying for market share, it’s possible that several, if not many, will lose their actual value. Bitcoin, the market leader, continues to attract a flood of significant investors, signaling that Bitcoin’s eventual value will be $0. If the largest and most well-known cryptocurrency goes bankrupt, hundreds of lesser cryptos that aren’t nearly as valuable or accepted would almost likely lose support.
Despite their growing popularity and worth, cryptocurrencies are still a long way from being used as traditional currencies or payment systems. Even if digital currencies eventually replace or coexist with conventional paper currencies, investors will have no way of knowing which cryptocurrencies will survive, let alone which will be the dominant long-term player in the industry.
In 2022, however, it looks that cryptocurrencies will continue to gain in popularity, exposure, and even value. At the same time, not all of the predictions on this list will come true; at least a few wills. If you want to get involved in this growing business, talk to your financial advisor about whether you should include cryptocurrencies in your investing portfolio.
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