Cryptocurrencies are starting to play key roles in the financial sector and many are wondering which of the cryptocurrencies will explode this year.
There’s no denying that the cryptocurrency market is exploding. Bitcoin, the most popular cryptocurrency, has grown by more than 70% in the last year, bringing the total market cap of the crypto industry to more than $2.2 trillion.
Despite the fact that Bitcoin has grown in popularity over time, it has seen huge declines this year.
There are thousands of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, making it difficult to get started in the world of crypto. Thousands of new cryptocurrencies are being added to the market almost every other day.
The top new cryptocurrencies are generating significant profits, posing a serious threat to the old and older cryptocurrencies.
In this article, we have listed 10 cryptocurrencies that will explode in 2022. Investors as well as prospective investors can choose any of these for better returns in 2022.
- Market cap: $740.39B$740,392,232
Satoshi Nakamoto, a mysterious figure, invented Bitcoin (BTC) in 2009. BTC, like all other modern cryptocurrencies, is stored on a blockchain. Bitcoin is maintained secure and safe from fraudsters because updates to the distributed ledgers must be confirmed by solving a cryptographic problem, a process known as proof of work.
The value of Bitcoin has soared as it has become a household name in the cryptoverse. In May 2016, a Bitcoin could be purchased for around $500. The price of a single Bitcoin was over $44,000 on March 1, 2022. This equates to a 7,800% increase.
Since Bitcoin is by far the largest cryptocurrency, it tends to be an indicator of broad trends in the crypto market, and the rest of the market tends to follow trends set by Bitcoin.
Bitcoin’s price hit an all-time high of almost 68,000 dollars in 2021, but it fell below 30,000 dollars in July. Because of this volatility, experts advise potential investors to limit their crypto investments to less than 5% of their overall portfolio at first.
Many experts, according to time.com, feel it will only be a matter of time until Bitcoin reaches $100,000, making 2022 a good time to invest to take advantage of this opportunity.
- Market cap: $309,536,908,274.30
Ethereum is a technology that serves as the foundation for digital money, worldwide payments, and applications of all kinds.
The community has created a thriving digital economy, innovative new ways for creators to earn money online, and much more. It’s available to everyone, wherever in the globe – all you need is access to the internet to participate.
Ethereum (ETH), which is both a cryptocurrency and a blockchain platform, is popular among programmers because of the many potential applications it offers, like smart contracts that run automatically when certain terms are fulfilled, and its application in NFTs.
Ethereum has seen enormous growth in recent years. From April 2016 to the beginning of March 2022, the price of ETH increased by more than 27,000 %, from approximately $11 to more than $3,000. In November 2021, the price of Ethereum (ETH 0.61%) was close to $5,000, but its value has since plummeted over the course of the last few months.
Several investors have expressed concern about the risks associated with more speculative assets such as cryptocurrencies, given that inflation is at a 40-year high and the Federal Reserve is expected to hike interest rates starting this month.
Due to the fact that Ethereum’s price has fallen significantly below $3,000, some investors may be questioning whether it is a good time to invest in this digital asset now. I believe it is, and the following are two reasons why.
If the price of Ethereum eventually rises as investors regain confidence in reinvesting their funds in more high-growth investments, purchasing the digital token now — at a discounted rate — may prove to be a sensible decision.
Ethereum’s blockchain is now the dominant framework for many decentralized financial (DeFi) applications, and it is expected to become even more so. As many as 70% of DeFi applications are built on the Ethereum blockchain.
- Market cap: $26,241,548,112.51
Solana is a relative newbie, having only been founded a year ago with the goal of facilitating the building of decentralized applications.
Solana intends to increase scalability and make DeFi more accessible on a bigger scale by overlaying proof-of-history consensus on top of the core proof-of-stake consensus, according to CoinMarketCap.
Should you buy Solana in 2022? Yes of course you should and here’s the reason why.
Solana is one coin you should buy in 2022. Its underlying blockchain network, like Ethereum’s, serves as a platform for developers to create and host DApps.
It is, however, still suffering teething issues, which have resulted in a number of outages. Nonetheless, its technology is gaining a lot of traction.
- Market cap: $80,087,026,804
Tether (USDT) is a cryptocurrency that runs on several blockchains, including Ethereum and Bitcoin. Tether tokens are controlled and issued by Tether Limited, a Hong Kong firm owned by Bitfinex’s owners. It is a stablecoin with a price tied to $1.00 (US dollars).
USDT is the fifth-largest cryptocurrency by market capitalization, with a value of about $68 billion as of October 2021.
Should you invest in tether in 2022? Of course yes!
Despite the emergence of competitors throughout time, Tether is the largest stablecoin and is frequently used for trading, borrowing, and generating interest. Tether may be considered one of the riskier cryptocurrencies due to its transparency difficulties, but it is still highly important in the cryptocurrency market.
- Market cap: $62,400,424,653
Binance Coin (BNB) has gone a long way since its inception in 2017. The coin was created and built exclusively for usage in the Binance ecosystem, with incentives available to encourage adoption. Before the initial coin offering (ICO), all coins were pre-mined at a price of $0.10 per BNB.
Binance Coin may be used to trade and pay fees on Binance, one of the world’s largest cryptocurrency exchanges.
The demand for BNB has increased as the price of the cryptocurrency has risen dramatically. Binance coin rose from roughly $38 in January to an all-time high of $683.82 in early May, and then to a new high of $668.07 in early November in 2021.
In 2017, the price of BNB was only $0.10. Its price had climbed to over $413 by the beginning of March 2022, a gain of around 410,000%
So, if you’re looking to invest in Binance coin in 2022, it will undoubtedly be a wise decision.
- Market cap: $18,916,385,325
Avalanche (AVAX) is a blockchain network based on smart contracts that prioritizes transaction speed, low cost, and environmental sustainability.
Avalanche’s goal is to create a scalable and flexible blockchain that retains decentralization and security. These are some of the reasons why investors are lining up to buy AVAX.
Avalanche, like Solana and others like them, is an example of a cryptocurrency with a clear goal. According to the cryptocurrency exchange Gemini, Avalanche is one of many initiatives attempting to “unseat Ethereum” as one of the most extensively utilized blockchain systems.
It is a blockchain, which is part of the technology that underpins cryptocurrencies, keeps data — such as the history of bitcoin transactions — in such a way that no single person or group has authority over it. The Ethereum blockchain network is the most widely utilized.
A $220 million fund has been established to support the development of Avalanche, which offers 4,500 transactions per second compared to Ethereum’s 13 transactions per second.
- Market cap: $32,426,739,932
Terra is a public blockchain technology that uses a set of algorithmic decentralized stablecoins to support a vibrant ecosystem that makes DeFi accessible to the general public.
TerraUSD and other terra-backed stablecoins are linked to the value of actual currencies. Luna, their counterbalance, is used to power the Terra platform and manufacture new Terra stablecoins.
Luna stablecoins and Terra stablecoins work together based on supply and demand: Users are encouraged to burn their Luna to create more Terra stablecoins when the price of a stablecoin climbs above the value of its associated currency. When the value of the Luna stablecoin dips in comparison to the base currency, users are encouraged to burn their Terra stablecoins in order to manufacture more Luna. As the Terra platforms become more popular, Luna’s worth rises.
Terra’s cryptocurrency was not well received by investors in its early stages. Terra undoubtedly emerged as a market leader in 2021, capturing the top spot.
Several experts anticipate Terra will exceed the US$150 threshold in the first quarter of 2022, while others feel it will take longer. However, despite its volatility, analysts believe that cryptocurrency has significant future potential and will continue to expand.
Luna has gained almost 14,200% in price from $0.64 on Jan. 3, 2021, to $92 at the start of March 2022.
- Market cap: $4,461,114,252.92
Stellar cryptocurrency is a type of digital or virtual currency that was made by the Stellar Development Foundation. There are a lot of cryptocurrency exchanges that trade the organization’s currency, which is called the lumen, with the symbol XLM on them.
To use Lumens on the Stellar network, traders need to be on the Stellar network. This is a blockchain-based network that connects banks, payment systems, and people. Lumens can be used to make low-cost cross-asset transactions, like payments.
Stellar’s main goal is to help people in developing countries send money and get loans from banks that aren’t available to them. Stellar doesn’t charge people or businesses to use the network.
Stellar uses decentralization to make the transfer systems that are already in use better. It has a distributed ledger that makes it easier for users to be more efficient and clear about what they do. You can look at this ledger to see all of the network’s data, including its transaction history for the transfer systems that are currently in use.
There are a lot of people who think that Stellar is one of the best altcoins that are going to get a lot of attention in 2022.
- Market cap: $27,651,300,176.77
Cardano (ADA) is one of the cryptocurrencies that has made it into the top ten most valuable crypto assets in terms of market capitalization. Cardano is not only well-known, but it is also widely regarded as one of the fastest-growing crypto assets.
Cardano is also renowned for being one of the first crypto projects that use proof-of-stake validation. By removing the competitive, problem-solving part of transaction verification found in platforms like Bitcoin, this solution reduces transaction time, energy consumption, and environmental effect.
Cardano functions similarly to Ethereum in that it uses ADA, its native coin, to enable smart contracts and decentralized apps.
In comparison to other prominent crypto coins, Cardano’s ADA token has grown slowly. The price of ADA in 2017 was $0.02. Its current price is $0.8194 as of March 16, 2022. This is an increase of about 4,850%.
- Market cap: $37,136,827,955.06
XRP, a digital technology and payment processing company founded by some of the same people as Ripple, can be used on that network to ease the exchange of many currency kinds, including fiat currencies and other major cryptocurrencies.
Ripple is a peer-to-peer decentralized open-source platform that enables the frictionless movement of money in any form, including dollars, yen, euros, and cryptocurrencies such as litecoin and bitcoin. Ripple is a worldwide payments network with a customer base that includes major banks and financial institutions. XRP is employed in the company’s products to allow for rapid currency conversion.
The price of XRP was $0.006 at the start of 2017. Its price reached $0.7776 on March 16, 2022, a gain of more than 12,600%.