Main cryptocurrencies ready to explode (Personal opinion)
With thousands of cryptocurrencies on the market, it can be difficult to decipher between a promising project with long-term growth potential and a quick way to grab cash that won't last in a bear market. Taking into account a cryptocurrency's market capitalization, development team, market position, and potential future price, we have compiled a list of some of the best cryptocurrencies to invest in 2022 and beyond.😅
Altcoins are generally higher risk investments compared to Bitcoin, but often provide higher returns in a bull market. On the other hand, they tend to depreciate more in bear markets. In general, cryptocurrencies with a smaller market cap are more volatile than larger, more established cryptocurrencies like Bitcoin and Ethereum. The coins on this list are among the top 100 cryptocurrencies, with each project having a market capitalization of around $1 billion.
My top and the reasons:🙋♂
• The best value cryptocurrency: Bitcoin (BTC)
• Has the most enthusiasm in the market: Ethereum (ETH)
• Most Promising Layer 2 Token: Polygon (MATIC)
• Best Decentralized Application: Sushi (SUSHI)
• Best hedge against ETH: Solana (SOL)
• Highest growth potential: Chainlink (LINK)
Here are my reasons for each of them:
Bitcoin (BTC)👍
The king of all cryptocurrencies, Bitcoin was the first and best known cryptocurrency on the market. It also benefits from the largest market capitalization and is among the most traded, ensuring liquidity for investors. Bitcoin is king when it comes to retail and institutional adoption. Most of the altcoins will follow the price trend of Bitcoin, so if BTC does poorly, the altcoins will likely take a hit as well.
Considering that the price of Bitcoin is still below its all-time highs of over $64,000, buying now may be a good investment in the future. Only 21 million bitcoins will exist (and approximately 15% of this number will be lost), so as Bitcoin's user base continues to grow, so will the price of the asset. Bitcoin currently has an inflation rate of 1.7%, and this rate is halved every 4 years in what is known as the bitcoin halving.
Ethereum (ETH)👍
As the currency and platform that made smart contracts part of the cryptocurrency market vocabulary, Ethereum has seen massive gains since its introduction in 2015. Currently trailing only Bitcoin when it comes to market cap, Ethereum has become one of the most discussed cryptocurrency projects in the world.
A consortium made up of some of the biggest names in the industry, including Microsoft, Intel, Chase and J.P. Morgan is building enterprise-ready versions of the software that powers Ethereum. With the market momentum and enthusiasm behind the Ethereum project, there is no reason to think that the coin has run its course, and investors are likely to consider ETH as part of their cryptocurrency portfolio. Ethereum is available on Coinbase, Gemini, and Voyager.
Polygon (MATIC)👍
Polygon is an Ethereum sidechain that is scaling DeFi at a rapid rate. High Ethereum gas fees have highlighted networks' struggle to upgrade to Eth2. Ethereum co-founder Vitalik Buterin expressed support for layer 2 scaling solutions, which handle transactions on a sidechain before sending a batch of transactions to the ETH layer 1 blockchain. As a result, users pay significantly lower fees and can settle transactions in just a few seconds.
Layer 2 sidechains play a critical role in scaling Ethereum, and Polygon is one of the first to do so. Assets need to be connected to the sidechain, so there are some switching costs that will keep people on Polygon in the long run. Polygon is available on Coinbase and Gemini.
Sushi (SUSHI)👍
Sushi, also known as SushiSwap, started out as a decentralized exchange (DEX) that rivaled Uniswap. Since its inception, its developers have upgraded the app to house a set of features, with more use cases to come soon. What sets it apart from Uniswap is that Sushi pays dividends to its token holders. SUSHI owners can stake their tokens on the platform to receive trading fees of 0.05% of all transactions on the platform.
In addition to SushiSwap DEX, the decentralized app hosts lending markets, token launch platforms, and even leveraged trading. Sushi plans to launch Shoyu, an NFT platform that will compete with OpenSea, the largest NFT marketplace today. A 2.5% fee will be charged to NFT sellers, which will be paid to SUSHI token holders in the form of dividends.
Solana (SOL)👍
One of Ethereum's main competitors, Solana, has seen exponential gains in 2021. From lows of around $1 through 2021, Solana is now trading at over $200. There are billions of dollars worth of cryptocurrency locked on its blockchain, making Solana one of the largest blockchains for decentralized finance. Many investors are using the Solana blockchain for both NFT and DeFi.
Solana's main benefit over other smart contract blockchains is its focus on scalability. Solana uses a PoS consensus model in conjunction with a PoH to process thousands of transactions per second. Additionally, transaction fees are about 99% less expensive than Ethereum, making it a great option for retail traders who don't have the capital to pay 3-figure gas fees on Ethereum.
Chainlink (LINK)👍
Chainlink (LINK) is an Ethereum token that powers the Chainlink decentralized oracle network. This network allows smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems.
Chainlink entered the market in 2014 under the name SmartContract.com. Shortly after its launch, the name changed to Chainlink to better represent its core market.
Chainlink entered into a strategic partnership with Google in 2019. The deal secured Chainlink's protocol within Google's smart contract strategy. This move was seen as a huge win by investors as it allows users to connect to Google's 2 most popular cloud services. Chainlink is available on Coinbase and Gemini.
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