These are promising cryptocurrencies for 2022, according to experts: Ethereum killers and metaverse tokens

The cryptocurrency market does not seem to be on fire in recent weeks. Since the highs of October and November, virtually every token has taken hit after hit. This has led to well-known currencies such as bitcoin, ether and sol falling tens of percent in recent times. The mood was also slightly negative on Monday with, among other things, a drop of more than 2 percent for bitcoin to a level of just over $46,000.

Also read: These top 15 cryptocurrencies fell the most from October and November highs: Shiba Inu Biggest Loser, Limited Damage On Luna, and Ether

However, this does not alter the fact that overall cryptocurrencies will be a strong performer in 2021. Many tokens have risen in value since the beginning of this year, with the value of the entire market soaring to over $2 trillion. Dollars. And then there are the real highlights, like ‘gala’. Since January, this cryptocurrency is up more than 42,000 percent.

Of course, the question is how 2022 will turn out for the cryptocurrency market, given the high volatility of many cryptocurrencies. But one thing is for sure: there is no shortage of crypto experts sharing their visions for the year ahead. The focus is on so-called ‘Ethereum killers’ and metaverse tokens.

Are you curious to know which tokens, according to experts, are the most promising for the coming year? Business Insider has listed some of the forecasts for you below.

A warning in advance: investing in the speculative market of cryptocurrencies involves many risks. Therefore, the market is unpredictable. Although success stories are highlighted most often, many people are also regularly wrong. When investing in cryptocurrencies, keep in mind that you may lose your investment.

‘Ethereum Killers’ Have Potential, Experts Say

A visualization of the Avalanche 'avax'.  Photo: AvalancheNatchapol18

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A visualization of the Avalanche ‘avax’. Photo: AvalancheNatchapol18

The Ethereum crypto platform has been second for many years to the ether cryptocurrency by market value. At the time of writing, ether has a market value of approximately $450 billion. That’s about half of the world’s most popular token, bitcoin.

Despite the success of Ethereum, criticism of the platform is on the rise. This has a lot to do with network transaction costs. In November, the average transaction fee increased to $63. That is the second highest level in history, after hitting $70 last May, analysts at crypto exchange Kraken reported.

What do those costs mean in practice? For example, for moving $50 worth of ether, users could pay $100 in transaction fees. And that leads to frustration.

These sky-high costs favor other networks. Platforms like Solana, Terra, Polygon, Fantom and Avalanche, the so-called ‘Ethereum killers’, have done good business this year. Its associated tokens are up thousands of percent. According to cryptanalyst Alex Svanenik, this trend could continue next year. He also mentions the binance coin as a contender.

Also read: These 6 ‘Ethereum killers’ will benefit from high transaction speeds and low costs by 2022, expects an analyst who tracks over 100 million crypto wallets

In particular, Svanenik highlights the potential of Solana and Terra. He sees these blockchains as major threats to Ethereum, as both have seen significant increases in activity over the past year, including in the field of so-called NFTs (non-fungible tokens† These are unique digital certificates of ownership that allow trade in collectibles such as digital art.

Tally Greenberg, director of business development for Allnodes, also sees long-term opportunities for Terra. “It’s a really interesting coin because there’s a lot of value in the underlying blockchain and it connects to the Cosmos ecosystem,” he previously told Insider. Cosmos and Polkadot, two platforms that connect different blockchains, are said to be other contenders. of Greenberg.

Also read: These 3 ‘proof-of-stake’ altcoins hold promise in the long run, according to a blockchain expert, but the shiba inu coin definitely isn’t.

Ethereum strikes back

While it looks like Ethereum will soon be knocked out of second place, that is not necessarily the case. Therefore, there are a number of developments that benefit the value of the ether.

First, there is the move to a more efficient verification method for approving transactions on the blockchain. This is known as the proof of stake method and is planned for next year. Due to the new way of verification, “the price of ether will rise much faster than bitcoin,” Tom Higgins, CEO of asset management platform Gold-i, told Insider.

Also read: ‘Proof of Stake’ vs. ‘Proof of Work’: Here’s What You Need to Know About Verifying Transactions on the Blockchain

Furthermore, ether is already up more than 400 percent this year, significantly more than bitcoin’s additional 60 percent. Never before has the growth difference between number 1 and number 2 in the crypto market been so great.

This is due in part to the growing number of use cases for the Ethereum network. One example is ‘smart contracts’, pieces of computer code in which agreements between two parties are recorded and executed automatically on a cryptographic platform without the intervention of intermediaries such as banks.

Also contributing to the increase in the value of the aether is the increase in the metaverse. We’ll get into that now.

The rise of the metaverse creates opportunities

A snapshot of The Sandbox's metaverse.  Photo: The Sandbox

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A snapshot of The Sandbox’s metaverse. Photo: The Sandbox

A relatively new development in the crypto world is the hype surrounding metaverse apps. These are 3D virtual environments in which users can move around as avatars and participate in activities.

The Sandbox gaming platform works with said metaverse and uses the Ethereum platform for financial transactions within its virtual environment. Recently, a virtual piece of land in this metaverse was sold for the equivalent of 3.8 million euros. And since the Ethereum platform facilitates this, the enthusiasm for metaverse applications is also reflected in the value of ether.

Also read: Sandbox co-founder explains why virtual real estate prices are exploding in the metaverse and the job opportunities offered by Web 3.0

But Ethereum and big metaverse players like The Sandbox and Decentraland aren’t the only ones benefiting from the hype surrounding virtual worlds. The smaller parties also offer opportunities for investors.

Crypto investor Scott Melker, known for the ‘Wolf of All Streets’ podcast, recently named Star Atlas as a contender against Insider. This is a metaverse of the game running on the Solana blockchain, one of the “Ethereum killers.”

Melker says that he knows the team behind the project and is very optimistic about what they can achieve if the project is a success. Therefore, he owns the two associated cryptocurrencies: ‘polis’ and ‘atlas’. It is a government currency that allows owners to influence the decisions of developers. The second is in-game currency that can be used to buy things like land and spaceships.

Also read: The ‘Wolf of All Streets’ Shares 4 Metaverse Cryptos He’s Betting On Right Now – He Thinks Bitcoin Could Hold at Current Levels for Months

Think twice before investing your money anywhere

Excited about all this history? Before you invest your money somewhere, remember that you may lose your investment. The success of the crypto market and the stock market in 2021 dovetails with the larger picture of financial markets where there is a lot of ‘free money’ in circulation, savings are barely paying off and speculation is rampant.

If that market sentiment changes due to, say, rising interest rates, which now appear to be slowly approaching in the US and UK, this could affect the stock market, but also the crypto market.

Also, not all successes in the crypto market can be explained logically. For example, crypto analyst Svanenik previously emphasized to Insider that it is not obvious that there is a connection between the price of a cryptocurrency and the possibilities of its use. As examples, he cited the Cardano and XRP crypto platform tokens, which are very popular among retail investors despite their limited technical applications.

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ALSO READ: The battle of the metaverse and a multi-million dollar hack: 13 experts predict what will happen to cryptocurrencies in 2022

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