The first few months of 2022 have certainly been eventful. First, stocks suffered their worst month since the dark days of March 2020, dragging cryptocurrencies down with them. Then, Russia mounted an unprovoked invasion of Ukraine, sending financial markets into further turmoil as Western nations anxiously hope any comparisons to Germany’s 1939 invasion of Poland are overblown. Amid this turmoil, market commentators, as ever, are taking wildly divergent views on cryptocurrency.
Cryptocurrency might have started as a Wild West of investing dominated by mavericks, but it’s now firmly in the financial mainstream. Institutional investors and big banks treat it as a serious asset despite recent volatility and regulatory crackdowns in China and elsewhere.
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Despite that volatility, many cryptocurrency investors remain on the lookout for the next big payoff. Keep reading to learn which cryptocurrencies might explode soon.
Which Cryptocurrency Is Set To Explode?
If you’re looking to start buying cryptocurrency, you might be wondering: Which one will bring the biggest potential return? Although bitcoin might be the obvious choice, it’s not necessarily the best one in 2022. Your chances of having a big payoff might be better with a smaller coin that hasn’t already been pumped up by institutional investors the way bitcoin has.
Here are six cryptos that still have a high ceiling.
Ethereum, commonly known as ether, is the world’s second-largest cryptocurrency behind bitcoin, even outperforming bitcoin recently in terms of price gains, CoinTelegraph reported. Last year, Ethereum instituted a major upgrade that included reducing the supply of ether, currently at 119.88 billion coins. The upgrade also allows the Ethereum network to handle more transactions per second, improve the platform’s scalability and lower transaction fees.
Compared to bitcoin, ethereum lacks scarcity — bitcoin supply is capped at 21 million coins — and widespread acceptance by companies and governments. However, unlike bitcoin, ethereum isn’t just a store of value. It’s also an infrastructure on which apps can be built. Other cryptocurrencies are issued on Ethereum, and it serves as the foundation of decentralized finance.
Binance Coin (BNB)
Binance is the most successful cryptocurrency exchange in terms of trading volumes. Like bitcoin, the Binance coin keeps a hard limit on the number of tokens in circulation — in its case, 165,116,761 tokens. This helped the token price increase exponentially in 2021. In addition, Binance puts about one-fifth of its profits each quarter into permanently getting rid of, or “burning,” BNB tokens, which raises the value of the remaining tokens.
Binance has two blockchains, which reduce the kind of bottlenecks Ethereum is vulnerable to. It’s also fast and scalable, and Binance is in the process of making the platform more regulator-friendly — a feature that could be crucial to its longevity and widespread adoption. In addition, Binance is launching Bifinity, a fiat-to-crypto currency payment platform that will help merchants prepare to accept digital assets as payments, CoinMarketCap reported. The payment processing platform supports more than 50 cryptocurrencies.
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Tether is a type of “stable coin” designed to provide a less volatile alternative to bitcoin because it is linked to another asset. In tether’s case, that asset is the U.S. dollar. In valuation terms, tether has a 1-to-1 ratio with the dollar, meaning it is less speculative than cryptos such as bitcoin and ether. With an $80.046 billion market cap, it’s the largest stable coin and the third-largest coin overall.
The big advantage of the tether is that it lets you make transactions in traditional currencies rather than having to dive into complex digital currencies. You can also lend it to cryptocurrency platforms in return for double-digit (annualized) interest rates without worrying about volatility erasing your earnings.
Decentraland is a virtual reality game on the Ethereum blockchain that uses the MANA token as an in-game currency. Users can purchase goods and services, buy land and visit other players’ as well as create and monetize their content. MANA’s current price of $2.38 represents a 543% increase from its 52-week low of about 37 cents.
MANA is the largest gaming cryptocurrency in terms of market cap. Although it does have competition from the likes of The Sandbox and Axie Infinity, and assets are quite expensive — the going rate for land is around $4,000, according to Benzinga — it has some benefits that could push the token forward. For example, users retain ownership of the digital assets they create in Decentraland and can convert them to cryptocurrencies other than MANA.
ALGO, founded by noted computer scientist Silvio Micali, has positioned itself as a competitor to the Ethereum blockchain. Hundreds of companies use it, according to Securities.io, and it got a huge lift last year when El Salvador said it would establish its blockchain infrastructure using Algorand. More recently, the venture capital firm Borderless Capital launched a $500 million fund to invest in digital assets that power decentralized applications on Algorand, Blockworks reported. The Marshall Islands’ central bank digital currency, Sovereign (SOV), also uses Algorand.
One of ALGO’s biggest advantages is its “proof-of-stake” algorithm, which offers a high degree of security and scalability and requires less electricity than Bitcoin and other platforms. This feature will only grow in importance as cryptocurrencies face more criticism — and possible regulation — for their massive energy consumption.
Solana is a relative newcomer, launched a year ago to facilitate the creation of decentralized apps. By layering proof-of-history consensus with the underlying proof-of-stake consensus, Solana aims to improve scalability and make DeFi accessible on a larger scale, CoinMarketCap reported.
Solana is one of several “Ethereum killers” designed to improve on Ethereum by allowing faster, cheaper transactions. As such, it has a shot at competing successfully with bitcoin and ether as a form of payment, according to TheStreet.
How To Spot the Next Big Cryptocurrency
Before figuring out which cryptocurrency might be the next big winner, it helps to understand why so many investors are gravitating toward cryptocurrency in the first place. Much of it has to do with a fundamental change in how digital assets are perceived.
“I believe we are in the early stages of a multi-decade secular shift towards digital assets, as the evolution from an analog to the digital world has been transformed forever due to COVID-19,” Dorman told GOBankingRates in an email.
He says this asset class “has now evolved far beyond cryptocurrencies” to decentralized finance, nonfungible tokens, and other investment vehicles.
Profit and Gains From Crypto
When trying to identify the next big cryptocurrency, two things to keep an eye on are similar to what a stock investor would keep an eye on market capitalization and price.
Market cap shows how much has been invested in a specific network. As a general rule, the larger the market cap, the more stable the asset, though it also means the coin has less room to grow. It’s also important to keep an eye on the price to determine whether investors are bullish or bearish on the cryptocurrency.
Other Key Metrics
Here are a few other metrics that can help you evaluate crypto:
Volatility: The less volatile the price, the better for the crypto’s value to remain stable.
24-hour volume: The total dollar value of all transactions over the past 24 hours can help you determine a coin’s liquidity.
Supply: As Bitcoin’s meteoric rise attests, scarcity can drive demand and prices. Increasing or infinite supply can have a dampening effect.
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Bitcoin’s Future Outlook
Bitcoin is a good indicator of the crypto market in general because it’s the largest cryptocurrency by market cap and the rest of the market tends to follow its trends.
It was easy to predict a $100,000 Bitcoin price late last year, coming off its latest all-time high in November. With Bitcoin’s big fall since then, the prediction game is even trickier.
The most extreme crypto skeptics say Bitcoin will tank to as low as $10,000 in 2022, but a middle ground might be that the cryptocurrency can still climb to $100,000 like many experts predicted late last year — just on a slower timeline.
“The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” Kate Waltman, a New York-based certified public accountant who specializes in crypto, told us back in November 2021.
But now, bullish experts are re-evaluating the crypto industry altogether as major corporations like Nike and other big brands are looking at ways to monetize their products in the digital metaverse. The rise of metaverse games, worlds, products, and experiences is increasing the popularity of altcoins, which has changed investors’ sentiments about Bitcoin (known as the original crypto).
Many experts are hesitant to predict a number and a date, but rather point to the trend of Bitcoin increasing its value over time. Last October, investors should expect a “pretty sustainable” rise in Bitcoin’s long-term value driven by organic market movement, with the $100,000 threshold in near sight, predicted Jurrien Timmer, director of global macro at Fidelity Investments.
“What I expect from Bitcoin is volatility [in the] short-term and growth [in the] long-term,” says Kiana Danial, founder of Invest Diva and author of “Cryptocurrency Investing For Dummies.”
Top 10 Cryptocurrencies expected to explode in 2022
cryptocurrencies are playing a major role in the finance industry. The most popular cryptocurrency, bitcoin, has had volatile price moves this year. The largest cryptocurrencies are facing high competition from newcomers like Solana. Here are the top 10 cryptocurrencies that will explode in March 2022.
There’s no surprise whatsoever that Bitcoin (CRYPTO: BTC) still reigns as the world’s most popular cryptocurrency. But the impact of war has dropped its price to the steepest low. However, it continues to enjoy the advantage of being the first cryptocurrency. It’s more widely accepted than any other digital coin, mainly because it’s been around longer. Bitcoin is even viewed by some investors as a good hedge against inflation since there will never be more than 21 million Bitcoin tokens in circulation.
Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (Defi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland. It is aiming to kill the large cryptocurrency Ethereum.
The key edge for Ethereum is its real-world utility. Its blockchain supports smart contracts that can be used in a wide range of applications. In particular, Ethereum is well-suited for creating non-fungible tokens (NFTs). Ethereum is up 2.34% in the last 24 hours. It has a circulating supply of 119,790,092 ETH coins and the max. supply is not available.
Binance operates the biggest cryptocurrency exchange in the world. It makes sense, therefore, that Binance Coin (CRYPTO: BNB) is the third-most-popular digital coin on the market. It’s the native coin on the Binance exchange. Investors who pay transaction fees with Binance Coin receive discounts. Each quarter, Binance reduces the supply of digital coins based on trading volume. Over time, these quarterly coin “burns” will remove 100 million coins, which amounts to half of the total supply. These moves are intended to increase the value of Binance Coins.
Among all the stable coins, Tether takes the top spot. All stable coins tie their value to another asset. For Tether, that asset is the U.S. dollar. In theory, Tether is like a “crypto-dollar” that should similarly maintain its value as physical U.S. dollars do. However, there has been some controversy over whether or not Tether has sufficient reserves to back all of its digital coins.
Avalanche, along with Solana, is another example of a crypto that has a clear purpose, as opposed to meme coins like Dogecoin, which have no purpose at all. Avalanche is one of the many projects seeking to “unseat Ethereum,” as one of the most widely used blockchain platforms, according to the cryptocurrency exchange Gemini. A Blockchain, part of the technology underlying cryptocurrencies, stores information — like the history of cryptocurrency transactions — in a way that ensures no one individual or group has control of that information. Ethereum is the most-used blockchain network. A US$220 million fund was just launched to fund the development of Avalanche, which boasts of much faster transactions than Ethereum (4,500 transactions per second versus Ethereum’s roughly 13 per second)
In the game Axie Infinity, players buy monsters and have them fight one another to win tokens, which can then be turned back into real money. During the pandemic, many Filipinos turned to play in their full-time jobs.
Meme coins rely on internet hype and therefore it’s near impossible to predict which ones will take off. But the meme coin Samoyedcoin has piqued the interest of Daniel Polotsky, founder of CoinFlip, a Bitcoin ATM company. Like Dogecoin, it bears the face of a cute dog and is intended to be a lighthearted and fun ambassador for Solana.
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Fetch.ai is a decentralized machine learning platform for applications like asset trading, according to CoinBase. For example, one of Fetch.ai’s applications helps users of the crypto exchange Uniswap automate their trading. FET is an Ethereum-based token that powers Fetch.ai. It’s gained more than 1,500% in the last year. Fetch.AI is using its technology to back real-world applications, says Ahmed Shabana, managing partner for Parkpine Capital.
USD Coin (USDC) is a type of cryptocurrency that is referred to as a stable coin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price. On Coinbase, eligible customers can earn rewards for every USD Coin they hold. Each USDC is backed by one dollar or asset with equivalent fair value, which is held in accounts with US-regulated financial institutions.
How Do you Buy Cryptocurrency?
Buying cryptocurrency is relatively easy. Here’s how to do it:
Open an Account With a Cryptocurrency Exchange or Broker
You’ll have to open a trading account, just like you would for stock trades. You can go through a cryptocurrency exchange like Coinbase, Binance.US, and Gemini, which match buyers with sellers or choose a broker like Robinhood and SoFi, which execute the trades for you. Exchanges typically have low fees, but they feature complicated interfaces. Brokers feature much simpler interfaces but might charge higher fees and offer a limited selection of coins.
Fund Your Account
Before you can trade crypto, you’ll need a way to pay for your purchases, such as a linked bank account, a wire transfer, or a debit or credit card payment.
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Place Your Cryptocurrency Order
Select the cryptocurrency you want to buy and indicate how many coins you want to purchase. To purchase fractional shares of cryptocurrency, specify a dollar amount instead of the number of coins.
The Future of Cryptocurrency
We can speculate on what value cryptocurrency may have for investors in the coming months and years (and many wills). However, the reality is it’s still a new and speculative investment, without much history on which to base predictions. No matter what a given expert thinks or says, no one knows. That’s why it’s important to only invest what you’re prepared to lose and stick to more conventional investments for long-term wealth building.
Keep your investments small, and never put crypto investments above any other financial goals like saving for retirement and paying off high-interest debt.