Thursday, September 29

Neither Bitcoin nor Shitcoins: 5 Serious Cryptocurrencies to Watch Out for in 2022 By Investing.com

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By David Pichodo

Investing.com – The cryptocurrency market has been ultra volatile and full of twists in 2021, a year that has also seen an explosion in the adoption of cryptocurrencies as investment, both by individuals and institutions.

It remains indisputably the most important cryptocurrency, since its capitalization represents more than 40% of the market. However, it is far from the best performing cryptocurrency of the year, as other secondary assets, sometimes called altcoins, and some of them much newer than him, surpassed the king of cryptocurrencies in 2021.

In this article, we will suggest 5 cryptocurrencies that are not Bitcoin and that you should be aware of for the next year. From the beginning, we have excluded non-serious currencies and cryptocurrency memes from our research, focusing on robust projects that have real utility, and that have already proven themselves, while maintaining considerable room for growth in 2022. .

: The launch of ETH 2.0 could change everything

Although it is often criticized for its network congestion, which results in slow transfers and / or prohibitive fees, it is difficult to ignore Ethereum (ETH) as the second largest cryptocurrency on the market, behind only Bitcoin. Most importantly, Ethereum remains the preferred network for many cryptocurrency projects. In fact, whether it’s DeFi or NFT, it’s often ETH that serves as the platform. For example, more than 90% of NFT-related transactions take place on its platform.

Furthermore, a major Ethereum upgrade is expected in the year 2022, which will become Ethereum 2.0, which will solve the biggest problem Ethereum faces, the speed of transactions. ETH 2.0 will increase the network capacity from about 30 transactions per second to 100,000, mainly due to the change to the “proof-of-stake” validation method, which eliminates the tedious validation method that involves complex calculations, which also significantly reduces grid power consumption, a key point as investors around the world are now concerned about the ecological impact of their investments.

Decentraland: The ideal crypto to bet on the metaverse

The new strategy of Meta Platforms, formerly Facebook (NASDAQ :), focused on the creation of a metaverse, has put in the spotlight several cryptocurrencies that have not waited for Mark Zuckerberg to put the concept into practice. One of the most important is undoubtedly Decentraland (MANA), which is a fully functional metaverse in which you can buy properties and participate in games or other online experiences.

MANA, the cryptocurrency used in the Decentraland metaverse, skyrocketed following Facebook announcements, then gave up much of its gains in the current cryptocurrency correction. However, once the dust settles, investor interest in the metaverse is likely to remain there, and even strengthen, and Decentraland will remain one of the best cryptocurrencies to profit from the phenomenon.

: Ethereum’s most serious competitor

The Ethereum network flaws we’ve discussed above have resulted in a specific class of cryptocurrencies displaying a similar value proposition to Ethereum, while also fixing several major ETH flaws. Solana (SOL) is often cited as Ethereum’s strongest and most serious challenger.

In fact, Solana highlights its enormous transaction processing capacity. Currently, Ethereum can only process a few dozen transactions per second, and although ETH 2.0 will eventually remedy this problem, Solana presents a particularly efficient immediate alternative, since the network is capable of processing 50,000 transactions per second.

Solana is also an unlikely contender in the NFT’s fight for market share. But it is proving to be a strong opponent for Ethereum. When the Solana Apes NFTs launched in August, 10,000 tokens were sold in just a few minutes. This event gave Solana the opportunity to make herself known. Most importantly, it allowed Solana to slowly take market share away from Ethereum.

IOTA: Specialized IoT Crypto and Dell Partner

Unlike the three cryptocurrencies mentioned earlier in this article, IOTA has rarely made headlines this year. IOTA offers a data security service for IoT (Internet of Things) devices, that is, electronic objects connected to the Internet, such as smart speakers or surveillance cameras. This field will explode in the coming years, thanks above all to the possibilities opened up by the speed of 5G mobile networks, which should be fully deployed by 2022.

Additionally, IOTA received support from Dell Technologies earlier this year as the computer giant partnered with the crypto project. Known as Alvarium, this association will focus on measuring the confidence of the data before it is used by an application. But beyond the project itself, the fact that a renowned international company like Dell is working with the IOTA network is a good reason to get serious about cryptocurrency and to follow it closely in 2022.

: Allow blockchains to communicate with each other

Cryptocurrencies and tokens, as well as the blockchains on which they are based, are becoming more prevalent across the board. However, although all blockchains are based more or less on the same basic principles, they are not capable of “communicating” with each other. Polkadot (DOT), created by one of Ethereum’s co-founders, offers a solution to this problem.

Polkadot comprises a main network – the chain of relays – and parachains that work in parallel, acting as bridges by connecting with other blockchains. As blockchain technology is used far beyond the cryptocurrency market (for example, in supply chain management), and as it is expected to become widespread in various sectors, the need for communication between public blockchains, or between the private blockchains from various companies, it should explode. This should logically benefit Polkadot, although there are other cryptocurrencies that meet this need as well.

You may also be interested in: Inflation, Omicron, rate hikes: What to expect from 2022

Also read our 2022 Market Outlook from Investing.com

Reference-es.investing.com

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