Cryptocurrency has gained great attention in the last few years, and many have keyed into the investment opportunities that currencies such as the famous Bitcoin bring, despite the high volatility.
Now you want to also make some investments in the crypto world and are wondering which cryptocurrency would explode and allow you to make some good profits. If this is you, then this article is just for you as we have outlined some of the most interesting cryptocurrencies that are likely to explode in the year 2022.
- Next Cryptocurrency To Explode in 2022
- Ethereum (ETH)
- Binance Coin (BNB)
- Tether (USDT)
- Decentraland (MANA)
- Algorand (ALGO)
- Litecoin (LTC)
- Solana (SOL)
- Cardano (ADA)
- Stellar (XLM)
- How Do You Identify The Next Big Cryptocurrency?
- How Can You Buy Cryptocurrency?
Next Cryptocurrency To Explode in 2022
There are a vast diversity of cryptocurrencies currently available in the market. Not all cryptos are profitable while some have great potential of giving you huge returns. Below are some of the cryptocurrencies that will likely explode in 2022.
The second-largest cryptocurrency, this coin will likely explode in leaps and bounds thanks to the upgrade it instituted last year. This upgrade saw its supply chain reduced to about 119.35 billion coins, giving it the ability to handle more transactions per second.
In addition, the upgrade also allowed the improved scalability of the platform with lower transaction fees. This is a win for all those who use the Ethereum blockchain. The only challenge with Ethereum is the lack of scarcity and widespread acceptance by organizations. However, Ethereum has a good model as it isn’t just a store of value like Bitcoin; on the contrary, it is a system on which other apps build.
Other cryptocurrencies are available on the Ethereum blockchain and it is a good foundation of decentralized finance. You will likely gain by investing some funds in this cryptocurrency.
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Binance Coin (BNB)
When trading volume is considered, BNB may be said to be the most successful crypto exchange. Having a hard limit on the number of tokens circulated (200 million), allowed a great price increase last year.
This crypto has one-fifth of its profits each quarter put into “burning” of BNB tokens which results in a raised value of the leftover tokens. Operating two blockchains allows it to reduce some of the challenges Ethereum faces. This allows its transactions to be fast and easily scalable.
In addition, it is currently in a bid to make its platform more regulator-friendly, to enable its longevity as well as widespread adoption. It will most likely be a good investment for the year.
A very stable coin, Tether or USDT is a much less volatile alternative to other coins like Bitcoin. This is due to its link to another widely used asset, the US Dollar. This coin operates on a 1-to-1 ratio with the dollar ensuring that you are not left guessing its value at any time.
It has a large market cap of about $78.182 billion giving it the position of the largest stable coin in the market. It is also the third-largest coin among all crypto coins. With this coin, you can make transactions with regular currencies, and not worry about the complexities associated with digital currencies.
This coin can also be used as a lending tool to other crypto platforms, expecting returns in double digits (annualized) without wondering about earning volatility.
When it comes to gaming in the virtual world, this crypto coin is it. A virtual reality game, it operates on the Ethereum blockchain and uses MANA as its token. With this coin, you can easily make purchases of products and services such as lands and even pay visits to other players. You also have the liberty to create and monetize content.
Currently, it is valued at $2.30, a whopping 1,543% increase from its previous low of 15 cents. The second-largest gaming coin when market cap is considered, it has some competition, and its assets are a little expensive as land costs about $4,000.
It, however, has some huge potential that may help increase its value. This includes user retainership of digital assets created in the game, which can be converted to cryptos other than the MANA.
ALGO was founded by a famous computer scientist and has since gained much value to be positioned as a major competition to Ethereum. Being used by many companies, it gained more value when El Salvador announced that its blockchain infrastructure would be established on it.
Also, a venture capital firm recently launched a $500 million fund investment in digital assets that power decentralized applications on it. Additionally, Algorand is used by the Marshall Islands’ central bank digital currency, Sovereign (SOV), giving it additional value and traction.
One of its biggest advantages is its stack-proof algorithm that allows high security and scalability as well as lowered electricity usage. This single fact will help it grow more as other cryptocurrencies are dealt with criticisms and maybe even possible regulations on excessive energy consumption.
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With this coin, users can process transactions about four times faster than the Bitcoin blockchain. It has a promising technological development that would likely make it a worthwhile investment especially due to its continuous innovation and evolution.
With a market cap of about $10.1 billion, it sits comfortably as the 20th coin in the crypto world. With such high market caps, it has some level of protection against high volatility common in the digital space. This also ensures that price is not controlled by a few large investors.
LTC also has a high liquidity and can be readily converted to cash. With a strong development team attached to it, it will be able to stand and adapt to the technological changes that occur ever so frequently in the digital space.
This coin also has the patronage of some top organizations such as the Ultimate Fighting Champion (UFC), Atari, and Overstock.com ensuring its patronage.
The best performing coin last year, SOL will likely continue its upward trend in the digital space. Rising to become the fifth-largest cryptocurrency in the world, SOL has a market cap of about $500.20 billion and has a growing community of investors who would love to see how it fares against older and more known coins like BTC or ETH.
One major advantage the SOL has is its extremely fast transaction at very low rates. SOL transacts at 50,000 per second whereas Ether has only 14 transactions per second. Another advantage of SOL is its high rate of the futures market. It is also a non-fungible token.
The downside of SOL is that it does not have a widespread decentralization, has fewer projects currently attached to it, and has quite an unstable network. However, there has been constant growth and potential which is expected to continue.
With its proof-of-stake mechanism that is used to verify transactions, its lower energy consumption rate, and its ADA token, Cardano has gained high traction in the crypto world.
Using the Ouroboros peer-reviewed blockchain protocol, it can secure payments and ensure privacy. It is also highly scalable.
Presently, Cardano processes only 250 transactions per second though this is expected to rise to 1 million transactions per second in the future. Added features and an increased adoption by organizations have led to the increased traction this coin has enjoyed.
It is likely that the coin will have a continued upward surge as more institutions are expected to adopt it. Also, the market focus of supply and demand seems to favor Cardano. It also has great environmentally friendly factors that work in its favor and has a software update that threatens to be the biggest rival of Ethereum.
All of these make it a likely great investment vehicle.
Operating a decentralized network, Stellar provides a platform where users can create, send, and trade a variety of crypto. Using blockchain technology, it is spread across multiple servers and thus cannot be monitored by a single source.
This cryptocurrency experienced a lot of growth spurts in the last year, and it is expected that it will continue to enjoy these growth spurts. It currently houses about 3 million user accounts and enjoys a network of partnerships including Moneygram and Flutterwave.
Its coins, the lumens (XLM), beyond being used to pay its transaction fees, are also used to execute trades quickly, allowing users to send and receive money in different denominations in very little time.
One major benefit of Stellar is that it was designed for the average user and for developing countries. This will likely ensure its high use. Observing its performance history and its potential value, it is likely to be a high-yield investment this year.
How Do You Identify The Next Big Cryptocurrency?
Like every other thing of value, cryptocurrency has some metrics and determinants that can help you identify which one will likely be the next big hit. Below are a few factors that would help you identify what cryptocurrency may be hitting it big soon.
This is the price of the crypto and the value of it available in the market. The market capitalization or market cap is an indication of how much has been invested in a particular crypto network. If the market cap is high, then the stability will also be high. This however provides little room for growth of the coin.
The cost at which a particular coin is valued at any given time is an indication of how well the coin may do in the future. As the price of a coin increases, so does the value of the coin increase. It is advisable to observe the price trend of any cryptocurrency before investing in it.
It is advisable to opt for coins that are more stable rather than extremely volatile coins. This will help ensure you take risks your system can accommodate. The less volatile a coin, the more stable it will be.
This is the total volume of transactions in the last 24 hours. It is an indication of how bad or good any cryptocurrency has fared in the last 24 hours.
The law of economics states that where there is no supply, demand increases. It is the same in the cryptosphere. Prices of coins will likely increase when these coins are not available and vice versa. If supply is abundant, then there will likely be a crash in the value of the coin.
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How Can You Buy Cryptocurrency?
Now you know the cryptocurrencies to look out for, but you are confused about where to start. Worry not as we will give you a guide on how you can get your crypto journey started.
Open A Crypto Account
The first thing to do is to open a cryptocurrency account with an exchanger or a broker. Most people go for either Binance or Coinbase. Once you open your account, you can move to the next step.
Fund Your Account
Once the account opening process has been completed, you need to look for a means to pay for the cryptocurrency you want to purchase. This can be done by linking your bank account, a wire transfer, or a debit or credit card.
Place Your Order
You can now go ahead and order the coins you want and the quantity. If you want to order fractionalized coins, input the dollar equivalent and it will be credited to your account immediately.
Now you know what cryptocurrencies are likely to explode this year and have also understood how to identify others that may explode over time. So, begin your investment in the crypto space, but don’t forget to invest only that which you are certain you can afford to lose.