Cryptocurrencies are on the rise and if you’re looking to jump into the market, it’s never been a better time. This is not investment advice but rather some of my personal favorites for 2022 that I think may be worth your attention or your money in that case.
The “best long-term crypto investments 2021” is a list of 10 cryptocurrencies that are predicted to be the best in 2022.
The top ten cryptocurrencies to invest in in 2022.
Crypto had a good year in 2021. Not simply in terms of token price parabolic rise. Many advances in crypto assets have caused a shift in market dynamics and the start of a new paradigm shift in financial markets. Institutions began to notice the crypto market less than a year ago and opted to stack blockchain-based assets to mitigate inflation risks.
We’ve seen a big public surge of interest, from Tesla and MicroStrategy investing billions in bitcoin to Adidas and Nike pioneering the NFT market. Web3 protocol innovation has also aided in the expansion of current ecosystems and the emergence of new market sectors.
Many initiatives shone brightly at the start of 2021, delivering astronomical profits in a short period of time. The blue-chip assets, such Aave, Comp, and Uni, experienced parabolic runs in the first quarter. However, majority of these DeFi 1.0 tokens were exposed to an extended consolidation until the next step up when the massive sell-off occurred in May.
Many tales in the crypto realm took new shapes and matured at a quick speed during that time of consolidation. With projects like Matic and Solana, the multi-chain DeFi movement drew many new users who couldn’t access the Ethereum network due to excessive gas prices. People saw how superior Solana is to Ethereum in terms of speed and user experience when ecosystems grew on top of these platforms. As a consequence, the price of SOL increased by 25 times, reaching an all-time high of $260.
We’ve witnessed one of the largest breakthroughs in the crypto field with NFTs, in addition to layer 1 growth and L2 scaling solutions. At first, we only noticed individuals trading NBA Top Shots clips and digital art treasures. However, as the market evolved and the NFT community grew, we began to see new collections inspired by Crypto Punks, the initial generative profile image NFT collection. The debut of the Bored Ape Yacht Club went viral in August. BAYC flipped Crypto Punks in terms of floor price before the end of 2021.
We began to witness more inventive use cases inside the ecosystem as the NFT trend got widespread and the story of bubbles faded. NFTs are also largely responsible for the emergence of metaverses. The main functionality is reliant on an NFT’s genuine ownership, interoperability, and composability. Sandbox and Decentraland, among many others, went on a tear, rewarding early metaverse enthusiasts handsomely.
We anticipate some trends to continue in 2022, as they promote more adoption at the retail and institutional sectors. Here are a few key themes that we expect will be significant in 2022:
- Increased allocation of crypto funds + continued popularity of leading cryptocurrencies that continue to attract institutional investors.
- Multi-chain DeFi is on the rise, with scaling solutions and narrative-driven ZK rollup efforts.
- The web 3 ecosystem is seeing an increase in the number of protocols and platforms that serve it.
- Because it is considerably simpler to onboard people with games and art, NFTs, metaverses, and gaming guilds continue to push mainstream acceptance.
- Companies that use security token offerings, as well as platforms that streamline the complex capital formation process, should find a huge market in crypto.
With that in mind, here is a list of the best ten cryptocurrencies to purchase in 2022, based on price movement and market opportunity, respectively.
Bitcoin is the number one cryptocurrency (BTC)
Despite the recent price drop, we anticipate bitcoin will hit new all-time highs in 2022. It’s difficult to forecast what will happen in a shorter time period. As the cost-basis bull market support market, Bitcoin still needs to claim $53k. Once that level is broken, we’ll almost certainly witness a trend reversal. A break into new highs at $69,000 would be ideal confirmation of our bitcoin thesis.
Apart from the price movement, the bitcoin network has a lot of advantages. The participants’ supply distribution is working out nicely, with whale holdings falling and retail soaring fresh to ATHs. This tendency may be seen clearly in a graphic posted by Willy Woo recently. In determining our bitcoin price forecasts for 2021, we should also include the expansion of the lightning network.
Because institutional demand will only increase in 2022, the long-held opinion on bitcoin bull/bear cycles may finally come to an end. As the bitcoin market becomes more institutionalized, we may expect a tremendous flood of funds destined for the purchase and hedging of bitcoin-related assets. This also indicates that new regulatory frameworks will emerge in the crypto markets, as the impediment for institutions to participate is removed. All of these contributes to the likelihood that bitcoin will reach $100k or higher in 2022.
Ethereum is ranked second (ETH)
When it comes to Ethereum, the primary question is whether they will be able to create a scalable infrastructure that offers a better or comparable user experience to existing L1s like Avax and Solana. That is the ultimate issue for the Ethereum ecosystem in the year 2022. The L1s are on their way. Ethereum’s frozen value has dropped from 96 percent to 63 percent in 2021. If Ethereum fails to realize its aim of creating a flexible blockchain, we may witness a greater drop.
We continue to believe that scaling solutions such as zk-sync 2.0, Starknet, and others will aid in reducing some of the early entrance hurdles associated with gas payments. Because it has been around for a long time, Ethereum is still the number two alternative for investors. The amount of user activity and the value of assets that operate on its platform are unmatched by other smart contract platforms. Ethereum is still well ahead of the competition in terms of locked value. If it becomes simpler to construct on Ethereum, the TVL might explode in value in 2022.
NFTs are another story that might lead to a significant price increase in ETH. Most projects continue to choose to start on the Ethereum blockchain since it is more secure and decentralized. In addition, we predict the London hard fork to burn approximately $10 billion in ETH in 2022, after burning roughly $5 billion since August 2020. We anticipate that, given the widespread acceptance of the Ethereum blockchain and potential scaling solutions, it will have a nice run in 2022, hitting the $10,000 barrier.
Polkadots, number three (DOT)
It’s definitely one of the ideal periods to start accumulating a DOT stake in your portfolio. After the parachain auctions, the token dropped over 50% from $54 to $24. Polkadot is now making its way back to prior highs. The rise began in 2021 as a result of the anticipation around parachain auctions. This year, we’ll look at how those chains work and how they contribute to web 3.
The meta protocol intends to accompany 100 parachains that use a relay chain to share a high degree of security. Polkadot delivered on its promises by using parachains to provide the last piece of functionality. These customized parachains that will operate as execution levels will now fill the gap left by the base layer’s lack of application capabilities. It’s also worth noting that under crowd loans, millions (106 million to be precise) of DOT tokens will be frozen for a lengthy period of time. As a result, the price will be affected in the near future.
Crowdloans through Parachain (Source- Polkadot)
Polygon #4 (MATIC)
The key reason for the lack of considerable migration to alternative L1s is because of L2 scaling solutions. Polygon is the most popular L2 solution for Ethereum. The Matic token’s native token almost tripled in value in 2021, but it isn’t the only thing people remember about it. Polygon sidechain was used by a large portion of the crypto community to access Ethereum’s primary layer 1 blockchain.
Active user addresses are the best comparable statistic for assessing Polygon’s growth. It has a higher number of active users than the Ethereum network. As a result, it is clear that mass consumers place a high value on scalability. Because most blockchain games, as well as other DeFi apps, are built on Polygon to overcome the gas fee issue, we predict this trend to continue in 2022.
#5 Ecosystem of the Cosmos (ATOM)
ATOM has been one of the most underappreciated crypto assets in the previous year. The fundamental reason for this is a lack of knowledge about the Cosmos ecosystem and the value of interoperability in the blockchain world. Cosmos is the only crypto ecosystem capable of developing an inter-chain protocol known as IBC.
For years, we were unaware of Cosmos’ advancements and improvements. That’s beginning to change, however. We now have a mechanism that allows many blockchains to interact with one another, thanks to IBC. It’s like the new internet, when computers are replaced by blockchains. Many people also overlook the fact that Cosmos SDK was used to create a number of well-known blockchain networks. The Luna ecosystem, which is now undergoing a major expansion, is developed utilizing Cosmos’ Tendermint core and SDK capabilities.
As a result, we anticipate ATOM will have its time in 2022, similar to how SOL did in 2021. In the ever-expanding DeFi industry, it will be primarily driven by strong demand for interchain security and communication.
The Sandbox is #6. (SAND)
This decade’s biggest game is Metaverse. If you want to take advantage of this growing trend, look for high-quality projects that are utility-focused and have a strong community. Sandbox is one such initiative that we discovered that sticks out. Early investors in SAND, the native coin, received more than 10x returns in 2021. This project’s ceiling, we feel, is far higher.
The project unveiled Sandbox Alpha in November 2021, a multi-week event that enabled players to see the metaverse for the first time. In addition, the team generated 18 metaverse experiences. We anticipate Sandbox to have its Axie moment around 2022, when users will finally be able to engage inside the metaverse and fully use in-game materials.
Polymath #7 (POLY)
If you understand the prognosis for digital assets, this is one of those asymmetrical bets you can make in 2022. Polymath is a prominent platform that provides token issuers, service providers, asset managers, and mainstream bank-enabled firms with industry-grade security solutions. Polymath has over 300 reserved tickers for its purpose-built blockchain, Polymesh, and has successfully deployed over 200 coins.
Polymath was chosen not only for its solid infrastructure for offering digital securities, but also for the vast potential it may create in conventional markets. Security token offers, or STOs, allow businesses to quickly raise money and liquidity in a regulated environment. We think Polymath will be a leader in the enormously undervalued and underserved crypto market once regulatory sanctioned assets gain public trust.
#8 Sunset (DUSK)
Towards the end of December, Dusk pulled off a tremendous rally. We feel this is just the beginning, since Dusk has a lot more to offer. Dusk, like Polymath, attempts to tackle a trillion-dollar issue in the financial markets by implementing a privacy blockchain based on zero-knowledge proofs.
The open-source blockchain technology that Dusk has inherited may help businesses decrease their operating costs and access deep liquidity more easily. Dusk claims to give maximum privacy to all users by using Zero-Knowledge proofs. They can interact and handle transactions without ever revealing sensitive on-chain data. As a result, Dusk has a lot of upside potential, and it might have a parabolic rebound in the near future or in Q1.
Chainlink #9 (LINK)
One of the first key developments in DeFi was Chainlink. From the beginning of 2019, it had a big run against ETH charts, although they peaked during the first DeFi summer. The LINK/ETH pair, for example, has been in a bear market for nearly a year. It will most certainly transform the narrative around oracles in 2022, regaining and exceeding its prior all-time high.
We are seeing new Chainlink agreements virtually every day. Chainlink oracles may be found all over the market. As a result, a shift in market sentiment for LINK tokens is only a matter of time until we see a new positive structure emerge.
#10 Guild Games with a High Yield (YGG)
You will be severely disadvantaged if you are not optimistic on the play-to-earn trend and DAOs in 2022. In the last year, we’ve only gotten a modest glimpse of the P2E economy. In terms of gameplay, functionality, and active players, we’ll see a lot more than Axie Infinity. And joining a gaming guild like Yield Guild Games is the greatest method to receive exposure to these high-performing projects and their related tokens (YGG).
Yield Guild Games is the most well-known blockchain-based gaming DAO, having invested in hundreds of high-potential early-stage games and expanding its treasury with NFTs and virtual lands. It also has a number of alliances with other guilds, such as Merit Circle, which allows for high-reward staking. They recently put money into 11 new initiatives, including a collaboration with Big Time.
As a result of all of these factors, we estimate YGG will attain a market valuation of $1 billion (a very conservative forecast) in 2022. You may also anticipate high APY staking pools and frequent airdrops if you join this DAO.
The crypto industry attained a market capitalization of $3 trillion in 2021. We are now at 2.2T. There is a significant decrease in progress. As a result, we may anticipate the whole market cap to surpass the previous peak, driving major cryptocurrencies to new all-time highs. The first stage for a breakthrough in 2022 is for bitcoin to reach its prior all-time high. This will nullify any bearish scenarios and assist in the ascent of other cryptocurrencies to new highs. We predict the aforementioned tokens will surpass the majority because to their usefulness and market potential. However, you must do study and ensure that you are in the best possible position with adequate risk management.
Here’s to a fantastic year in 2022. Let’s enjoy a green year together, shall we?
Karthikeya Gutta, a crypto writer and freelance contributor for ItsBlockchain, was born and raised in India. With in-depth analysis and research, he covers many facets of the sector. His enthusiasm for blockchain and the crypto ecosystem stems from his belief that it has the potential to transform the world and benefit millions of people.
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The “best cryptocurrency to invest in 2022 for long-term” is a list of the top 10 cryptocurrencies that are expected to be the best investments in the future. The list includes Bitcoin, Ethereum, and Ripple.
Frequently Asked Questions
Which cryptocurrency is best to invest in 2022?
A: At this time, there is no one cryptocurrency that we recommend. There are a lot of cryptocurrencies out there, and each has their own set of flaws.
Which Cryptocurrency has best future?
A: Right now, I think Monero is the best cryptocurrency with a good future.
What is the best Cryptocurrency to buy in 2021?
A: Bitcoin is currently the best cryptocurrency to buy in 2021.
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