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After a year like 2021, crypto prices have their work cut out for them in 2022. The asset class has seen some of the biggest booms, followed by some of the steepest busts; now, it looks like digital currency is going to round out the year on a high note. However, there are some problems on the horizon. With worries about inflation heating up, what will be the next cryptos to explode in 2022?
The Fed meeting on Wednesday has sowed fears across the stock market. With the entity looking to drastically taper its emergency spending, investors are going to become increasingly risk-averse with their portfolios. Additionally, inflation continues to rise as a point of concern. Of course, the Fed’s plan to hike interest rates thrice over the course of 2022 feeds into this bearishness for crypto as well.
So, if investors want their crypto holdings to remain winners through the next year, it’s time for them to get selective. Arbitrage tokens, store-of-value plays and meme coins aren’t going to cut it as we head into the gauntlet of the next year. Winners are going to be found in utilitarian plays and burgeoning tech trends; these coins and tokens are going to keep their heads above water and then some.
With that said, what cryptos are looking to lead the pack of winners through the next year? Consider this grip of digital currency plays:
Next Cryptos to Explode: Solana (SOL-USD)
Solana is already one of the biggest clear-cut winners of 2021. The SOL coin has boomed; those that bought in in early January at $1.40 are resting on a 13,000% gain at its current price of $183.10. This boom can be attributed to many things, be it the high-risk market trends or the network’s highly successful foray into non-fungible tokens (NFTs). But the biggest factor behind this open-source dapp playground isn’t just hype or NFT trendiness; rather, it’s Solana’s position to give Ethereum (CCC:ETH-USD) a run for its money as the king blockchain network.
Solana’s biggest edge is its scalability. As blockchain continues to become more and more ubiquitous among internet users, there will certainly be more transactions of data occurring on these chains. Some networks are simply more apt at handling larger volumes of transactions than others. Solana’s is one such network, and it is using this growing adoption to its advantage.
Take, for example, Ethereum’s hike in gas fees. Through this year, gas fees for an average transaction on Ethereum reached prices as high as $50 for a simple swap. The 2,300% growth in fees is exasperating Ethereum’s users, and Solana has become a network that many are turning to. Solana offers up to 50,000 transactions per second, and it promises fees of below 1 cent to pay for these transactions.
Ethereum is working on improving scalability through its Merge upgrade, but this is still far off. The network won’t be making its big proof-of-stake overhaul until at least summer of 2022. In the meantime, Solana continues to explode in size and market cap. Since January, the network has added 500,000 active users, and SOL’s market cap has grown to nearly $100 billion.
Decentraland (MANA-USD) Leads Metaverse Plays Into 2022
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If there’s an industry that’s guaranteed to continue growing through the new year, it’s the metaverse. The metaverse might not seem essential; after all, it’s a virtual space for people to do a lot of things they can do in real life — playing games, socializing, seeing live music, etc. But, it’s a space with a massively significant backing by not only the blockchain industry but Big Tech as well. Facebook’s rebrand to Meta Platforms (NASDAQ:FB) is proof enough of that; if a tech giant with a market cap of nearly $1 trillion and a history so rich it has spawned movies about its founding is making a rebrand of this magnitude around an industry, that industry is going to stick around.
This makes the case for Decentraland’s MANA token as a crypto to watch going into next year. The metaverse, while holding a major Silicon Valley backing, is still something many want to see decentralized. They don’t want Meta putting their hands into the virtual reality space; they want it to be by the people, for the people. Decentraland is leading investors in this direction.
Decentraland is a blockchain-based metaverse that invites any and all to come experience its sandbox world, chock-full of activities. One can buy a plot of land, develop it and have their friends come over and hang out in it. They can go play games or travel the main streets of the digital world. They can do all of these things from the comforts of their home, too. And with major backing from institutions like auction house Sotheby’s, as well as multiple musicians who performed at the network’s first music festival, there’s plenty of support for MANA.
Next Cryptos to Explode: Flux (FLUX-USD)
Flux is certainly the smallest crypto here, but do not discount the network. With Web 3.0 becoming a more widespread phenomenon, Flux is sure to be one one of the next cryptos to explode in popularity. The network, which lauds itself as the “Amazon (NASDAQ:AMZN) Web Services of blockchain,” is in a position to challenge even the largest of web service giants.
The Flux network is taking on AWS with its own product suite, but while AWS offers software-as-a-service (SaaS), Flux offers blockchain-as-a-service (BaaS). The differences aren’t significant to the end user from a performance perspective. However, BaaS products allow users to combine the powers of both cloud computing and distributed public ledgers to their advantage.
Flux’s FluxOS allows for the same types of functions huge swaths of the internet tap AWS for; it can run oracles, it…