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What is the next big cryptocurrency to explode in 2022?


VSCryptocurrency may have started out as an investment Wild West dominated by mavericks, but it’s now firmly entrenched in the mainstream of finance. Institutional investors and major banks view it as a serious asset despite recent volatility and regulatory repression in China and elsewhere.

If you need evidence of volatility, consider this: as of April 11, bitcoin’s value ranged from a low of $28,893.62 to an all-time high of $68,789.63 over the past year.

Despite this volatility, many cryptocurrency investors remain on the lookout for the next big win. Keep reading to find out which cryptocurrencies could explode soon.

Which cryptocurrency is ready to explode?

If you’re looking to start buying cryptocurrency, you might be wondering, which one will bring the biggest potential return? While bitcoin might be the obvious choice, it’s not necessarily the best in 2022. Your chances of having a big win might be better with a smaller coin that hasn’t already been inflated by institutional investors like bitcoin did.

Here are six cryptos that still have a high cap.

1. Ethereum (ETH)

Ethereum, commonly referred to as ether, is the second largest cryptocurrency in the world behind bitcoin, even surpassing bitcoin recently in terms of price gains, CoinTelegraph reported. Last year, Ethereum implemented a major upgrade that included reducing the Ether supply, currently at 120.33 billion coins. The upgrade also enables the Ethereum network to handle more transactions per second, improve platform scalability, and reduce transaction fees.

Compared to bitcoin, Ethereum lacks scarcity – bitcoin supply is capped at 21 million coins – and widely accepted by businesses and governments. However, unlike bitcoin, Ethereum is not just a store of value. It is also an infrastructure on which applications can be built. Other cryptocurrencies are issued on Ethereum and serve as the basis for decentralized finance.

2. Binance Coin (BNB)

Binance is the most successful cryptocurrency exchange in terms of trading volumes. Like bitcoin, the binance coin maintains a strict limit on the number of tokens in circulation – in its case, 165,116,760 tokens. This has helped the price of tokens increase exponentially in 2021. In addition, Binance spends about a fifth of its profits each quarter on permanently disposing of BNB tokens or “burning” them, which increases the value of the remaining tokens. .

Binance has two blockchains, which reduce the type of bottlenecks that Ethereum is vulnerable to. It’s also fast and scalable, and Binance is making the platform more regulator-friendly, according to Seeking Alpha – a feature that could be crucial for its longevity and widespread adoption. Additionally, Binance is launching Bifinity, a fiat-cryptocurrency payment platform that will help merchants prepare to accept digital assets as payments, CoinMarketCap reported. The payment processing platform supports over 50 cryptocurrencies.

3. Tether (USDT)

Tether is a type of “stablecoin” designed to provide a less volatile alternative to bitcoin because it is tied to another asset. In the case of Tether, this asset is the US dollar. In terms of valuation, tether has a 1 to 1 ratio with the dollar, which means it is less speculative than cryptos such as bitcoin and ether. With a market capitalization of $82.57 billion, it is the largest stablecoin and the third largest coin overall.

The big advantage of tether is that it allows you to transact in traditional currencies rather than having to dive into complex digital currencies. You can also lend it to cryptocurrency platforms in exchange for double-digit (annualized) interest rates without worrying about volatility wiping out your income.

4. Decentralized (MANA)

Decentraland is a virtual reality game on the Ethereum blockchain that uses the MANA token as its in-game currency. Users can purchase goods and services, purchase land and visit other players, as well as create and monetize their own content. MANA’s current price of $2.12 represents an increase of approximately 385% from its 52-week low of 43.68 cents.

MANA is the largest gaming cryptocurrency by market capitalization. Although it has competition from The Sandbox and ApeCoin, and the in-game assets are quite expensive – plots of land listed on Blockee have prices ranging from several thousand dollars to over $22 million – it does feature some advantages that could move the token forward. . For example, users retain ownership of the digital assets they create in Decentraland and can convert them to non-MANA ​​cryptocurrencies.

5. Algorand (ALGO)

ALGO, founded by famous 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 took a huge boost last year when El Salvador announced it would be building its blockchain infrastructure using Algorand. More recently, venture capital firm Borderless Capital launched a $500 million fund to invest in digital assets that power decentralized applications on Algorand, Blockworks reported. The digital currency of the central bank of the Marshall Islands, Sovereign (SOV), also uses Algorand.

One of the main advantages of ALGO 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 come under more criticism – and possible regulation – for their massive power consumption.

6. RenderToken (RNDR)

RenderToken is a graphics rendering network that allows miners with excess GPU bandwidth to distribute it among artists and creative studios that need additional computing power. RNDR is the native token that creators and miners use in their transactions on the RenderToken network.

RNDR was launched in a public sale in 2017, but it was only recently listed on the Coinbase exchange. Although highly speculative, RNDR could benefit from the increased exposure it is getting on Coinbase as well as the extraordinary increase in non-fungible tokens for digital art.

How to Spot the Next Big Cryptocurrency

Before determining which cryptocurrency could be the next big winner, it helps to understand why so many investors are turning to cryptocurrency in the first place. Much of this has to do with a fundamental shift in how digital assets are viewed, said Jeff Dorman, chief investment officer at Arca, a financial services firm specializing in digital assets.

“I believe we are in the early stages of a decades-long secular shift towards digital assets, as the evolution from an analog to a digital world has been forever transformed due to COVID-19,” said Dorman told GOBankingRates in an email.

He says this asset class “has now evolved far beyond cryptocurrencies” into decentralized finance, NFTs and other investment vehicles.

Crypto Profit and Earnings

When trying to identify the next big cryptocurrency, two things to watch out for 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. Generally, the higher the market capitalization, the more stable the asset, although this also means the coin has less room for growth. It is also important to keep an eye on the price to determine whether investors are bullish or bearish on the cryptocurrency.

Other key measures

Here are some other metrics that can help you evaluate a crypto:

  • Volatility: The less volatile the price, the better it is for the value of the crypto to remain stable.
  • Volume over 24 hours: The total dollar value of all transactions in the past 24 hours can help you determine a coin’s liquidity.
  • Provide: As Bitcoin’s meteoric rise attests, scarcity can drive demand and prices. The increase or infinity of supply can have a moderating effect.

How to buy cryptocurrency?

Buying cryptocurrency is relatively easy. Here’s how:

1. Open an account with a cryptocurrency exchange or broker

You will need to open a trading account, just like you would for stock trading. 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 usually have low fees, but they feature complicated interfaces. Brokers offer much simpler interfaces, but may charge higher fees and offer a limited selection of coins.

2. Fund your account

Before you can trade cryptocurrency, you’ll need a way to pay for your purchases, such as a linked bank account, wire transfer, or debit or credit card payment.

3. Place your cryptocurrency order

Select the cryptocurrency you want to buy and indicate the number of coins you want to buy. To buy fractional cryptocurrency shares, specify a dollar amount instead of the number of coins.

GOBankingRates Crypto Guides

Daria Uhlig contributed reporting for this article.

Data is accurate as of April 11, 2022 and is subject to change.

This article originally appeared on GOBankingRates.com: What’s the next big cryptocurrency to explode in 2022?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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