Even while cryptocurrency began out as a Wild West of investment ruled by mavericks, it has already established itself as a part of the mainstream financial system. It continues to be seen as a significant asset by institutional investors and major banks, despite recent volatility and regulatory crackdowns in China and other jurisdictions.
Consider the following as proof of how volatile the market is: Bitcoin’s value has fluctuated between a low of $28,893.62 and an all-time high of $68,789.63 during the course of the last year, according to data as of Jan. 28. Although the cryptocurrency market has seen significant volatility, many investors are still on the search for the next big reward.
Continue reading to find out which cryptocurrencies are poised to boom in the near future. Without further ado, these are the best new cryptocurrencies, which are called digital gold.
Which Cryptocurrency Is Set To Explode?
A major upgrade to the virtual world will happen in the coming years, with AI and everything that is happening. Having decided to begin investing in cryptocurrency, the next issue is: which cryptocurrency would provide the highest possible return on investment?
Despite the fact that Bitcoin seems to be the obvious pick, it is not always the best option in 2022. It’s possible that investing in a smaller currency that hasn’t previously been inflated up by institutional investors, such as Bitcoin, would give you a higher chance of making a large profit. What will be the next big cryptocurrency, find out below?
Keep in mind that they are not stacked in any particular crypto order or any crypto investors’ predictions.
Ethereum (ETH)
The Ethereum network is certainly one of the better buys you can get. According to crypto experts, big banks have started looking for this and similar traditional currencies (crypto)/ Bitcoin is the world’s most valuable cryptocurrency by market capitalization, with Ethereum (commonly known as Ether) coming in second.
Ethereum has outperformed Bitcoin in terms of price growth over the last year, according to CoinTelegraph. A big update to Ethereum’s software was implemented last year, which includes a reduction in the total quantity of Ether, which is presently 119.35 billion tokens.
Aside from increasing transaction capacity, the update also improves the scalability of the Ethereum platform while simultaneously lowering transaction prices. While Ethereum is more widely accepted by businesses and governments than Bitcoin, it does not have the same level of scarcity (the Bitcoin supply is limited to 21 million units) or universal acceptability as Bitcoin.
Ethereum, on the other hand, is more than simply a store of wealth, unlike Bitcoin. It also serves as an infrastructure upon which applications may be developed. According to U.S. News, Ethereum is the platform on which other cryptocurrencies are created, and it serves as the basis for decentralized finance.
Tether (USDT)
According to an analyst team at Stanford, one of the best buys of a smaller coin is Tether. The past year has been particularly good to this coin. Tether is a sort of cryptocurrency known as a “stablecoin,” which is intended to be a less volatile alternative to Bitcoin since it is tied to another asset with a decentralized exchange in blockchain networks.
In the instance of Tether, the asset in question is the United States dollar. In terms of pricing, Tether has a one-to-one relationship with the dollar, indicating that it is less speculative than other cryptocurrencies such as Bitcoin and Ethereum.
With a market capitalization of $78.182 billion, it is the biggest stablecoin and the third-largest cryptocurrency overall. The major benefit of using Tether is that it allows you to do transactions in regular currencies rather than needing to learn about complicated digital currencies beforehand.
You may also lend it to cryptocurrency platforms in exchange for double-digit (annualized) interest rates, allowing you to generate money without having to worry about market volatility wiping away your profits.
Algorand (ALGO)
ALGO, established by renowned computer scientist Silvio Micali, has positioned itself as a challenger to the Ethereum blockchain technology by realizing a certain number of tokens in circulation in the crypto world.
According to Securities.io, it is used by hundreds of organizations, and it received a significant boost last year when El Salvador announced that it will utilize Algorand to build its blockchain infrastructure.
The venture financing company Borderless Capital has announced the creation of a $500 million fund to invest in digital currencies that power decentralized apps on Algorand, according to Blockworks.
Algorand is also used by the Marshall Islands’ central bank to create their digital currency, Sovereign (SOV). An important feature of ALGO is that it uses a “proof-of-stake” algorithm, which provides a high level of security and scalability while using far less power than bitcoin and other blockchain systems.
This characteristic will only become in relevance when cryptocurrency’s large energy usage comes under greater scrutiny — and even regulation — as a result of its widespread use.
Decentraland (MANA)
Decentraland is a virtual reality game that runs on the Ethereum blockchain and makes use of the MANA token as its in-game cash, according to the developers. In addition to purchasing products and services, purchasing land, and visiting other players’ locations, users may also produce and monetize their own original content.
MANA’s current share price of $2.30 reflects a 1,543 percent rise from the stock’s 52-week low of about 15 cents in early February. MANA is the second-largest gaming cryptocurrency in terms of market capitalization after XRP.
Despite the fact that it faces stiff competition from the likes of The Sandbox and Axie Infinity, and that its assets are relatively pricey — the market pricing for land is almost $4,000, according to Benzinga — it does have certain advantages that might propel the token ahead in the near future.
User ownership of digital assets created in Decentraland, for example, remains with the user, who has the option to convert them into a cryptocurrency other than MANA.
Binance Coin (BNB)
If you want to curve the most known cryptos like Bitcoin and Ethereum and look for something different, then take a closer look at Binance Coin. In terms of trading volume, Binance is the most successful cryptocurrency exchange on the market.
Binance Coin, like Bitcoin, has a hard cap on the number of tokens in circulation — in this instance, 200 million tokens — similar to Bitcoin. It is based on the binance smart chain. Such crypto, for stock investors, with the right investor protection and metrics can prove to be a serious asset in the future.
This contributed to the exponential growth in the token price in 2021. In addition, Binance invests around one-fifth of its revenues each quarter on permanently destroying, or “burning,” BNB tokens, therefore increasing the value of the remaining tokens in circulation.
Because Binance has two blockchains, it is less susceptible to the kinds of bottlenecks that Ethereum is susceptible to. It’s also quick and scalable, and according to Seeking Alpha, Binance is now working on making the platform more regulator-friendly – a trait that might be critical to the network’s long-term viability and broad acceptance.
Solana (SOL)
A software investor’s perspective is applied to cryptocurrencies by Kevin O’Leary, a strategic investor via Immutable Holdings, a blockchain holding firm, and a guest on CNBC’s Shark Tank. “Rather than weighing the advantages and disadvantages of each cryptocurrency, I look at the developers, the team behind the blockchain, and so on.”
Based on what he’s seen so far in the development of the three currencies — Solana, Polygon, and HBAR — O’Leary has high expectations for them. He believes that they “will continue to grow and evolve gradually over the next year based on what I’ve seen so far in their development.
” Solana: This cryptocurrency was launched in April 2019 as a project focusing on the permissionless nature of blockchain technology to provide decentralized finance (DeFi) solutions such as payment processing, smart contracts, stablecoins, peer-to-peer lending services, and more to the general public.
This project aims to make the building of decentralized applications (DApps) easier, and it does so by using a hybrid approach of transaction validation that combines the proof-of-history (PoH) and proof-of-stake (PoS) models. All in all, in terms of fan bases in the digital world, Solana is a lucky block, in the way Bitcoin was in 2013.
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