Last year, this was true for digital assets, and it could very well be true for the top cryptocurrencies of 2022. Overall, cryptocurrencies had a fantastic year in 2021, bolstering an already compelling case for their addition to the portfolios of more risk-averse investors.
This asset class began in 2021 with a market capitalization of little over $800 billion; by 2022, it had nearly quadrupled to $2.25 trillion. Now is the perfect time to learn crypto investing and capitalize on your new knowledge.
Cryptocurrencies, on the other hand, did not have a strong start in 2022. Most of them were susceptible to cyclical swings and shifts in attitude, particularly when inflation became a major market driver.
Kevin O’Leary, a strategic investor, and panelist on CNBC’s Shark Tank view coins through the point of software development through Immutable Holdings, a blockchain holding company.
“Rather than weighing the advantages and disadvantages of each coin, I look at the developers, the team behind the blockchain, and so on.”
Because he believes Solana, Polygon, and HBAR will “continue to expand and develop steadily over the next year based on what I’ve observed from their development,” O’Leary has high trust in the three coins.
Solana (SOL) was created in April 2019 as a project aimed at utilizing blockchain’s permissionless nature to enable decentralized finance (DeFi) solutions like payment processing, smart contracts, stablecoins, peer-to-peer lending, and more.
This project wants to make it easier to create decentralized apps (DApps) by combining a proof-of-history (PoH) and proof-of-stake (PoS) approach to validate transactions.
This platform tries to address several of Ethereum’s security flaws while also providing Defi solutions. The platform intends to create “Ethereum’s internet of blockchains” by connecting Ethereum-compatible blockchain networks and aggregating scalable Ethereum solutions.
Hedera, often known as HBAR, is the decentralized economy’s most widely utilized enterprise-grade public network. Alphabet(GOOGL), Deutsche Telekom(DTEGY), LG, and TATA Communications are just a few of the world’s leading companies that own HBAR. Hedera provides a blockchain for developers to create secure enterprise applications.
O’Leary searches for characteristics that he feels identify coins from one another. Specifically, “In the FX market, Solana and Polygon are both excellent in terms of transaction speed. In terms of financial transactions, there’s a lot of potential there.
When considering cryptocurrencies, it is important to consider utility as well as performance.”
Non-fungible tokens, or NFTs, are one-of-a-kind, identifiable digital assets (tokens) that are part of the Ethereum blockchain. Meanwhile, other blockchains are starting to offer their own versions of this unique asset class.
NFTs can be anything digital – sports cards, memes, music – but their application as digital art has sparked a lot of interest.
NFTs have been treated in the same way that fine art: anyone can buy a Picasso print, but there is only one person that can own the original.
NFTs have exploded in popularity this year. According to NFT data, the business is booming, with global sales reaching more than $20 billion in 2021.
“2022 is the year of DAOs, social tokens, and innovation in NFTs,” says Jordan Fried, CEO, and creator of Immutable Holdings.
A DAO, or decentralized autonomous organization, is an online community that manages a cryptocurrency wallet, usually using a token from the Ethereum ecosystem.
It is dedicated to achieving a common goal, such as running a business or making investments. Rules are written as a computer program that governs how members of an organization interact with one another; these rules, together with transaction data, are stored on a blockchain.
Individuals can join the community by purchasing DAO tokens. They, like other cryptos, have prices and are measured in market capitalizations. However, they are rarely spendable in the same way that Bitcoin, Ethereum, or other cryptocurrencies are.
Fried believes that DAO-based ventures will continue to prosper in 2022. “They fundamentally alter the way businesses work. [DAOs] allow members of an organization to put their money where their mouth is and truly participate in decision-making.”
He also expects that “social tokens” (also issued through DAOs) would become more popular in 2022, allowing artists, brands, and other entities to monetize themselves.
“I believe we’ll see a growing number of social clubs, fan bases, artists, and even organizations switch to DAOs in the future years, and I believe these will be some of the most interesting initiatives to be a part of,” he says.
The above ideas indicate some emerging aspects of the crypto world that are yet to be discovered by the general public. Will they grow to become market-leading cryptos, weakening Bitcoin’s dominance?
Big names like Bitcoin and Ethereum could dither if current trends continue, while smaller competitors could steal market share. Smaller cryptocurrencies have already flooded the crypto market, giving more functionality and utility than digital “blue chips.” If you’re interested in obtaining some digital assets from our list, you are welcome to buy them at CEX.IO.