Cryptocurrency is now in its financial stream as big giants started considering it an excellent asset because of its recent volatility and regularity crackdowns globally.
After 2021, the asset has shown the highest booms in compliance with the steepest busts. This digital asset looks like it will reach a higher status in 2022, and more people will love to invest in it. However, there might be some issues regarding high gas fees, and despite it, more significant potential in the crypto field exists. The question is, what would be the next cryptocurrency to explode in 2022?
On April 11, bitcoin was valued at $28,893.63 (the lowest) and $68,789.63 (the highest) over the last year. It helps in considering the volatility of this growing market. Also, this volatility is not enough for several cryptocurrency investors as they are still looking for the next big reward. Stay with us to learn about the top 5 exploding cryptocurrencies in 2022.
Find your best cryptocurrency exchange before determining which cryptocurrency has higher chances to explode, it’s significant to understand why shareholders are attracted to it.
How to Spot the Next Cryptocurrency Rightly?
Cryptocurrencies majorly influence how the audience considers digital assets. Jeff Dorman, CIO (chief investment officer) at a financial servicing firm, Arca, explained:
“I believe we are in the early stages of a multi-decade secular shift towards digital assets, as the evolution from an analog to digital world has been transformed forever due to COVID-19.”
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Which Gains and Profits Can be Earned from Crypto?
If you struggle to identify the next cryptocurrency to explode in 2022, you should think like a stock investor and consider two important things: price and market capitalization.
The market capitalization indicates how much money has been invested in it. In general, market capitalization directly responds to the digital asset, but it is suggested that the currency may have less growth opportunities. Further, It is critical to monitor the price to see if investors are optimistic or pessimistic about cryptocurrency.
Other Key Metrics to Consider
Better evaluate the cryptocurrency based on these factors:
- Per Day Volume: You can better estimate a coin’s liquidity by knowing the total dollar transaction over the last 24 hours.
- Volatility: The crypto value stays stable if the price is less volatile and vice versa.
- Supply: Scarcity may drive demand and pricing, as seen by Bitcoin's meteoric increase. Supply that is increasing or unlimited might have a damping effect.
How Do You Buy Cryptocurrency?
It is relatively feasible to buy cryptocurrency. Just do the few steps, and you are here.
1. Use a Crypto Exchange or Broker to Open your Account
You need to set up a trading account to buy or sell cryptocurrencies like you would with stocks. It can be done through a cryptocurrency exchange, such as Binance.US, Coinbase, or Gemini, matching buyers with sellers. Alternatively, you can use a broker, such as SoFi or Robinhood, to carry out the trade for you. Exchanges usually have low fees, but their platforms can be complicated to use. Brokers usually have simpler platforms, but they may charge higher fees and have a smaller range of currencies available.
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2. Your Account Must be Funded
You'll need the means to pay for your assets before you can trade cryptocurrencies, such as a debit or credit card payment and connected bank account.
3. It’s Time to Place Cryptocurrency Order
Choose your desired cryptocurrency to buy and select the number of coins you wish to acquire. You can also buy fractional crypto shares by entering an amount in dollars than the number of cryptocurrencies.
Tip: Always Invest Wisely
It is not easy to invest in crypto if you are new to this market, but the process becomes effortless after getting a complete understanding. You must be well aware of the crypto market, trends, and volatility. Pick up the proper crypto at the right time to enjoy best practices to invest in digital assets. You can make more enormous profits by buying tokens at a lower price and then selling these coins sale. But you must pick information about successful coins that will still be famous in the future. We have researched for you, so you don't have to.
1. Ethereum (ETH)
Website: ethereum.org
Advantage: It is well-known as the biggest decentralized app platform, creates smart contracts, and holds the second position in the crypto world (first by Bitcoin).
Market Capitalization: $540 billion
Ethereum, also known as ether, is famous as it stands behind bitcoin (the second biggest crypto market globally). CoinTelegraph reported that it outperforms bitcoin now in price gains. Ethereum underwent a significant upgrade last year to reduce ether supply, currently at 120.33 billion coins. Also, Ethereum now can handle more transactions per second than before, which ultimately lowers transaction fees and improves scalability.
However, Ethereum is deprived of scarcity as compared to bitcoin as the quantity of bitcoin is limited to 21 million coins and is widely accepted by big giants, governments, and firms. Ethereum, on the order hand, also offers an infrastructure for building apps, unlike bitcoin, that's just a value store. It acts as a base of decentralized finance as other cryptocurrencies are launched on it. LiteForex’s Jana Kane, the forecaster of several Ethereum prices, concluded in 2022 that:
“Ethereum (ETH) Predictions for 2022 vary from the minimum price of $2,451.577 to almost $15,000. What they have in common is the fact that Ethereum will show steady growth with no external falls. The speed of this growth is what the resources see differently. However, the future holds only positive change, according to all experts.”
2. Binance Coin (BNB)
Website: binance.com
Advantage: It can exchange utility tokens and be used by retailers to purchase things.
Market Capitalization: $100 billion
In trading volume, Binance is considered a highly successful crypto exchange. Binance currency, similar to bitcoin, has a tough limit on tokens’ number that may be issued – in this case, 165,116,760 tokens. It aided the token price's immediate increase in 2021. Furthermore, Binance invests around one-fifth of its revenues each quarter in permanently removing, or “burning BNB tokens” to improve the worth of the leftover coins.
Binance features two blockchains, which reduces the bottlenecks that Ethereum is prone to. It's also quick and scalable, and according to Seeking Alpha, Binance is in the process of making the platform more controlling – a characteristic that might be critical to its durability and broader acceptance. Further, Binance is creating Bifinity, a cryptocurrency payment platform that will assist retailers in taking digital assets as payment. The payment processing platform supports over 50 cryptocurrencies.
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3. Decentraland (MANA)
Website: decentraland.org
Advantage: MANA can increase interest in metaverses based on blockchains. This brand's next move will also help it sustain its momentum in 2022.
Market Capitalization: $4.8 billion
Decentraland was launched in February 2020 and is valued as the world’s best metaverse crypto on the market. It simply makes sense to gamble on Decentraland's MANA exploding this year when the bull market is bound to hit. Decentraland is the first Metaverse cryptocurrency with a “free-to-play play-to-earn 3D in-browser” environment. It has a thriving virtual real estate market on OpenSea, with a total transaction volume of about 231.5k ETH, or around $802 million.
Decentraland also includes Decentral Games' ICE Poker, the most popular virtual casino. It has been nicknamed the "Metaverse killer app" after generating $7.5 million in revenue in the first half of 2022, demonstrating "Decentaland and Decentral Games" enormous potential to stay long.
MANA, an ERC-20 token on the Ethereum blockchain, is Decentraland's principal utility asset. MANA is also Polygon friendly, which means it can be traded on decentralized exchanges for cheaper costs.
Facebook just debuted its Metaverse, although it has been widely panned. People desire an open Metaverse, and it, like the internet, should not be held by a corporation.
MANA is decentralized and administered by a DAO, implying that anybody who owns it may participate in its governance. The DAO controls all of its most critical smart contracts, including those relating to land ownership, which can be purchased with no effort by anybody who wants an easement deed from them as long as they have some formV1one input. MANA can be purchased on Kraken, Coinbase, Binance, LBank, Gate.io, and Gemini.
4. Solana
Website: Solana.com
Advantage: This large NFT marketplace is one of the fastest crypto networks with higher interests of institutional investors.
Market Capitalization: $70 billion
Solana is one of the most apparent 2021 victors. The SOL currency has soared in value; individuals who purchased it in early January for $1.40 are sitting on a 13,000 percent profit at $183.10 at its current value. This surge may be linked to various factors, including high-risk market trends and the network's extremely successful push into NFTs (non-fungible tokens). But the driving force behind this open-source digital ass playroom isn't simply excitement or NFT trendiness; it's Solana's position to compete with Ethereum as the big giant of the crypto network.
The most significant advantage of Solana is its scalability. As blockchain becomes more popular among internet users, there will undoubtedly be more data transactions taking place on these chains. Some networks are just better suited to handle higher transaction volumes than others. Solana's is one such network, capitalizing on the expanding adoption.
The increase in Ethereum's gas expenses is one example. Gas fees for ordinary Ethereum transactions rose as high as $50 for a simple trade throughout the year. The 2,300 percent increase in fees irritates Ethereum users, and Solana has emerged as a network many are turning to. Solana promises up to 50,000 transactions per second and rates of less than one penny to pay for these transactions.
