Blog Crypto What Will Be the Next Cryptocurrency to Explode in 2022?

What Will Be the Next Cryptocurrency to Explode in 2022?

date December 17, 2021 time 6 min read 1386 views

Trying to find the next cryptocurrency to explode in 2022 is similar to trying to win the lottery, but that won’t stop many people from trying to find the winning ticket. We can’t make any promises that you’ll be a millionaire next year as a result of reading this article, but we can do our best to point you in the direction of success. Let’s take a look at some top candidates for the crown and how to separate the good from the duds in the crypto world.

Multiple times a year, there’s a new story about a coin that saw a triple-digit price increase in a matter of weeks, and we’d all love to be the person who cashes in on the next one and take advantage of compound interest investments. It’s only natural to wonder what the next cryptocurrency to explode in 2022 will be. Well, apologies for the clickbait title, but we’re not about to give you the golden ticket.

It’s not out of spite or because we want to keep all the gains for ourselves—if we knew what was going to happen in a few months’ time, we’d tell you, but trying to pick the best coins to invest in is pure speculation. Still, we’ll outline some promising coins and explain how to select your future investments. But remember that we’re not a financial advisory firm—we’re merely sharing our perspective of the crypto landscape and what the next cryptocurrency to explode in 2022 will be.

Finding the candidates for the next big cryptocurrency 2022

Since there’s no “right answer” to the question of which coins will rise in 2022, we’d rather give you a breakdown of how to make your own mind up about the best cryptocurrency to invest in 2022. 

If you watched dogecoin’s ascent in 2021 with regret, you might be wondering what the next big cryptocurrency for 2022 will be.
If you watched dogecoin’s ascent in 2021 with regret, you might be wondering what the next cryptocurrency to explode in 2022 will be. (Source: Unsplash)

Exploring what the next cryptocurrency to explode in 2022, here are some useful criteria to help you avoid common traps.

Metrics

So, what is the next cryptocurrency to explode in 2022? Let’s start with the basics. When it comes to understanding how to invest in cryptocurrency and metrics, most people only pay attention to the price—what a cryptocurrency is worth today and how much it’s increased so far. But this doesn’t paint the whole picture.

Instead, we’d advise paying attention to a coin’s market capitalization. Technically, this means the price of each share multiplied by the number of shares in circulation—but if that’s too complicated, think of it as an indicator of how much investment a cryptocurrency has attracted so far.

Bitcoin’s market cap is $897,646,918,366. At the other end of the spectrum, polyfloki coin (a very niche meme coin) has a market cap of just $801,927.

A high market cap doesn’t guarantee that cryptocurrency is a good investment, but it suggests there’s some level of demand. So, along with some other factors (mentioned below), it’s a strong sign that a crypto could be a good bet.

Real-world use

With so much hype about price increases of cryptocurrencies, it would be easy to forget that they’re not just speculative investments—they’re assets with real-world applications. Bitcoin was created to pose an alternative to fiat currency, and Ethereum provides a framework for gaming development. 

This is perhaps the most important criteria – it’s essential to immerse yourself in the crypto industry before making significant investment. One of the most common mistakes crypto investors make is buying something just because that’s what everyone else is doing, without understanding why the cryptocurrency was even invented in the first place.

Keep up with blockchain news through sites like Coindesk, and read the whitepapers of the cryptocurrencies you’re considering to have an overview of what the next cryptocurrency to explode in 2022. That might sound daunting, but most of them are fairly accessible sections as long as you skip the super-technical sections (you don’t need to understand absolutely everything). You can also turn to online communities for more information—even fairly niche cryptocurrencies have their own subreddits.

Strategy

Looking at a cryptocurrency’s metrics and inherent value are essential for figuring out if it makes a good investment. Still, a coin that makes a great investment for one person might not be right for everyone.

For instance, are you aiming to invest over the short term or the long term? Long-term investors hold a cryptocurrency for months or even years because they believe it has strong potential, while short-term traders try to ride the highs and lows to profit.

While we’re talking about crypto investment strategy and the next cryptocurrency to explode in 2022, it’s also worth pointing out that you need to get your timing right. It’s easy to get overexcited when a cryptocurrency is soaring in value—but it’s usually better to buy low and sell high.

The best cryptocurrency to invest in for 2022—potential candidates

Now that we’ve taught you how to make judgments for yourself, it would only be fair to reveal the conclusions we’ve come to in all of this. Here are our top five best cryptos to look out for in 2022.

Bitcoin

Surely bitcoin has already hit its peak or “Is it too late to invest in bitcoin?”, you ask? Not necessarily. Since bitcoin is already the market leader, it has an advantage over others. Yes, it might not increase by 1000% in 2022 (although that’s not impossible), but it provides far less risk than other cryptocurrencies while still showing plenty of growth potential. Historically, the entire crypto market has followed bitcoin’s price movements. 

Just because bitcoin has seen plenty of success already, it doesn’t mean that it’s at the end of its road.
Just because bitcoin has seen plenty of success already, it doesn’t mean that it’s at the end of its road. (Source: Unsplash)

The coin also unveiled an update in November 2021 for the first time in four years, which will make it more efficient. This could set it up for further success and be the next cryptocurrency to explode in 2022.

Ethereum

By the same logic, as the second-biggest cryptocurrency, ether should make another good bet for those who want growth with lower risk investment. It was one of the top performers last year, so why not believe it could be the next cryptocurrency to explode as well for 2022?

Ethereum is currently the most popular framework for many decentralized finance (DeFi) protocols, gaming applications, and non-fungible tokens (NFTs), thanks to its use of smart contracts. It may well have an exciting future—but it does have some competition as you’ll soon see. 

Solana

Ethereum isn’t the only blockchain protocol doing what it does. Solana is positioning itself as a competitor thanks to its smart contract capabilities, and it’s trying to be a faster alternative. As a result, some NFTs are choosing to launch on Solana instead.

Solana has enjoyed impressive performance over 2021 so far, to put it lightly—from December 2020 to December 2021, its price has increased by almost 10,000%. No, that’s not a typo. Will 2022 be another knockout? Will it be the next cryptocurrency to explode next year?

Polkadot

The Polkadot Coin (DOT) was only launched in 2020, but it’s already achieved significant growth over that time, with its native token DOT achieving a four-digit price increase over the last year. It could well be one of the next cryptocurrencies to explode in 2022.

It’s another potential Ethereum competitor, with one of its standout features being that it can connect and integrate different blockchains, bringing more possibilities to application developers that want to add further functionalities to their protocols. 

Polkadot also has mega-fast transactions.

Cardano

Cardano doesn’t tend to get as much attention as other next cryptocurrencies to explode in 2022, but it has a market cap of more than $80 million. The coin has been around since 2015, but it updated its protocol in 2020 to become more decentralized. 2021 saw further updates, along with the introduction of smart contracts.

Cardano could be one of the best cryptos for 2022 thanks to updated protocol.
Cardano could be the next cryptocurrency to explode in 2022 thanks to updated protocol. (Source: Unsplash)

It’s now aiming to become an improved version of Ethereum, and thanks to the updates, it could be a real possibility.

Yes, these coins might be sounding somewhat similar—but that’s why it’s so important to read whitepapers and really understand the technology. Or maybe you’re starting to realize that you underestimated the complexity of the crypto world and the upcoming crypto investment trends.

Investing with MyConstant 

Has reading about the difficulty of picking the next cryptocurrency to explode in 2022 made you lose your appetite for high-risk investments? Or at least made you think that you should collate a portfolio with a mixture of riskier and less risky investments to earn interest on crypto? You’re in the right place.

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George Schooling

George Schooling

Borrow against your multi-crypto portfolio in minutes from just 6% APR

Tags: best cryptocurrency to invest in 2022 next big cryptocurrency 2022 best cryptos for 2022

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