The crypto industry entered the mainstream adoption phase this year. With less than 48 hours of 365 remaining, many are looking forward to the new year and wondering which cryptocurrencies will rise in 2022.
In this article, we will consider five cryptocurrencies that may likely grow in popularity next year. First, though, we provide a review of the crypto industry’s performance in 2021 which will certainly play a key role in how things play out in the coming year and beyond.
Increased adoption leads to $3 trillion in market size
The crypto market was estimated at $778 billion at the start of the year and that was the lowest it sat. The industry peaked at $2.9 trillion and is valued at $2.3 trillion as of the time of writing. From the opening price to the most recent valuation adds up to more than 200%.
Source: Coin360
The spot for the top gainers is one that most altcoins want to hold. However, Axie Infinity seems to be ahead of its counterparts as it amassed a whopping 20,000%. Nonetheless, 90% of the digital assets in the top 100 are in the green with at least a 50% increase. The chart above paints a clearer picture of the growth of the market so far.
Crypto market developments in 2021
The number of public companies invested in the cryptocurrency market has been on the rise since the turn of the year. MicroStrategy became one of the first companies to purchase Bitcoin in 2020 and has since increased its position and eventually become the largest corporate holder of the asset with over 100,000 units.
Tesla also splashed a huge sum on BTC as it reported its first buy worth $1.5 billion. The apex coin is not the only asset that has seen increased adoption. Led by Elon Musk and Popular American cinema operator AMC Entertainment, meme coins like Dogecoin and SHIB delivered massive gains for investors.
There were also massive returns for investors who supported alternative blockchain networks like Binance Smart Chain, Solana, Terra, Polygon, etc. Ethereum congestion at the peak of the bull run created a market demand for cheaper solutions, and these alternative tokens witnessed massive adoption.
Following the splendid activity over the past 362 days, we try to predict the best cryptocurrencies to invest in 2022.
Which cryptocurrencies will rise in 2022?
1. Polygon (MATIC)
MATIC was trading at $0.018 per unit at the start of the 2021. The coin is currently exchanging at $2.75 as of the time of writing. From the opening price to the most recent level the asset under consideration is worth, we observe a more than 10,000% increase.
Polygon no doubt saw a lot of volatility this year and saw more uptrends. We also observed the role market fundamentals play in its current milestone. The project saw more features as it officially rolled out the highly anticipated first version of its mainnet more than two years after it was launched.
The launch gave rise to other facets as Polygon announced the start of a staking service on its testnet, to prepare users for the upcoming staking service on the network’s mainnet. The project saw an added boost when Bitwise opened a fund focused on the chain under consideration.
The effort was launched to encourage the wider use of MATIC, the native token of the Ethereum-based scaling solution. The most recent development took place in October, and resulted in a whopping 70% increase at the end of the month.
Trading a few marks below its all-time high, the fourteenth largest cryptocurrency by the market will end the year on a positive note as it is currently up by more than 50%. Aside from the growth it has seen in the past 362 days, what makes it one of the best tokens to invest in 2022?
Polygon provides a wide variety of modules developers can use to easily deploy and configure their own custom blockchain. With this quality, the asset is sure to see more decentralized applications (dApps) built on the network, including for decentralized finance (DeFi), non-fungible tokens (NFTs), and games.
Based on the above-highlighted facets, the blockchain under consideration will continue to see more adoption and more traffic, which will result in the ecosystem token seeing more hikes.
2. Solana (SOL)
Seeing more than 10,000% increase already this year, Solana is in a league of its own. This is specifically amplified on the monthly chart as we note that the bears dominated only two of the twelve months.
Various catalysts were responsible for the massive hike the coin saw of which increased adoption of decentralized applications (dApps) built on the network for decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and social media.
The Solana ecosystem is one that invites developers to build on it. As of the time of writing, there are more than 870 projects on the blockchain with ongoing efforts to onboard more developers and years.
What does the chart say about SOL?
The Moving Average Convergence Divergence (MACD) fast line took a dip following the start of the five week long downtrend that resulted in the indicator experiencing a bearish cross. The most recent hikes are having little to no effect on MACD and there is no visible change in its trajectory.
Nonetheless, we see an impending bullish interception on the indicator and may trigger another massive hike, similar to the one experienced in 2021.
3. Terra (LUNA)
Terra is another asset that could be considered to be in a league of its own. The cryptocurrency took it place among the big boys after it kicked off the year at $0.65 and is currently trading at $91 per unit.
The gap between the starting price and the most recent price suggest that the asset has seen a more than 14,000% increase already in 2021. As with Solana, increased adoption of decentralized applications (dApps) built on the network for decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and social media contributed to LUNA’s massive gains.
Terra may have more adoptions in 2022 as it was originally pegged to fiat currencies and offer fast transactions with low fees. This feature is especially important as more commercial institutes may seek out the coin for this feature. what does the chart say?
Considering the huge surges LUNA is seeing lately, a correction is soon to follow. However, the asset is one of the many cryptocurrencies that may rise in 2022 as previous price movements suggest that the downtrend may not last longer than a month, followed by consolidation and another strong uptrend.
4. Axie Infinity (AXS)
Axie Infinity Shards (AXS) is the governance token of Axie Infinity, a blockchain-based trading, and battling game. The game currently boasts more than three million users as of the time of writing.
The coin opened the year trading at $0.5 per unit. The coin is currently trading at $103 per token which suggests a more than 20,000% increase so far. AXS was introduced to the market and quickly swept through the cryptocurrencies rank by market cap.
It was in a league of it own as it thrived when other projects were ravaged by corrections. What was responsible for the surge? The parent company of the coin under consideration offered their users earnings while playing the game. The module quickly gained ground as it went from barely 200,000 gamers to the most recent amount.
We observe that play to earn is gaining users with the introduction of other tokens with same motive as AXS. Nonetheless, AXS lead the pack and may continue to set the pace – making it one of the best cryptocurrencies to invest in 2022.
What does the chart say?
Similar to LUNA, AXS may start next year plagued by corrections. However, the asset is one of the many cryptocurrencies that may rise in 2022 as previous price movements suggest that the downtrend may not last longer than anticipated, followed by consolidation and big bullish actions
5. Decentraland (MANA)
Decentraland brands itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications.
Similar to Axie Infinity, the platform attracts users with the prospect of playing to earn. The virtual reality has two governing tokens, MANA and LAND. Of these coins, the latter is the most prominent as it gained more than 5,000% over the past 362 days.
The token rose to an all-time high of $6 but is trading at $3.6 per unit at the time of writing. The 28th coin by market cap saw a lot of volatility in 2021 with both the bears and the bulls having the spotlight. Nonetheless, the buyers came out victorious as they led the market for eight months.
Why is MANA on the list of cryptocurrencies that will rise in 2022? The charts suggest that the asset under consideration is going through a critical phase. Actions in the first month of next year will determine if the coin may continue to surge in the first quarter.
A failure to surge may result in a bearish market during Q1. Q2 will usher in massive hikes that may send MANA trading above $6.
Frequently Asked Questions About Which Cryptocurrencies Will Rise in 2022
What determines which cryptocurrency will rise in 2022?
It is vital to consider the growth of a project’s developer and user community, the experience of the core development team and previous market performance. Putting these factors into consideration can help you decide which cryptocurrencies will rise in 2022.
How do I pick the best cryptocurrency to invest in in 2022?
Picking the best cryptocurrency requires adequate research. This article is probably not enough as you also need to research the individual projects to make the best choice. Remember, though, that the massive run experienced this year might affect potential returns on projects going into 2022.
Conclusion
In this article, we briefly reviewed the progress of the crypto market this year and also considered which cryptocurrencies will rise in 2022. We further discussed the reasons for concluding that they may be the best projects to invest in next year and also answered commonly asked questions about cryptocurrencies to invest in 2022.
The above predictions coming true largely depend on market conditions remaining relatively stable which of course is not guaranteed. The volatile nature of the crypto space, including other unknown constraints, means investors and traders must do their own research.
