Several cryptocurrencies are built on a specific use case and solve real-world problems. Transaction speeds, low costs, and sustainability are problems tackled by different projects. Let us look at the six best Cryptocurrency to invest in 2022
Solana is a third-generation blockchain built on an open-source model to provide a range of Decentralized Finance (DeFi) solutions. The project came into the picture in 2017 by Anatoly Yakovenko but was launched later in 2020. Solana uses a unique combination of hybrid mechanisms, i.e., Proof-of-Stake and Proof-of-History, to improve the scalability of the blockchain.
The open-source nature of Solana also helps in providing greater efficiency than current models using only a few hundred nodes. The blockchain can run smart contracts and Decentralized Applications (DApps), making it a real game-changer in the industry. At present, Solana can process up to 50,000 transactions per second!
The price of one SOL coin in 2020 was just $0.77. In early 2021, the SOL coin reached significant price peaks of approximately $7 per coin, representing a considerable increase from 2020. Today, it costs $180. So, your $100 back in 2020 would be worth approx. $23,000 today. It marks a staggering growth of 23300% in less than two years!
AVAX is a Layer 1 (L1) blockchain that is on a mission to solve the problem of scalability without hindering decentralization. Avalanche is a platform that allows developers or anyone to quickly produce their multi-functional blockchains and decentralized applications (dApps).
The Ethereum Blockchain is a direct competitor of AVAX as the former compromises transaction speed. While Avalanche has a high throughput rate of 6,500 transactions per second without compromising scalability, Ethereum is far behind in this competition. It makes Avalanche one of the contenders in the market and holds the position in top cryptocurrencies by market capitalization.
The price of one AVAX coin in 2020 was just $4.2. In early 2021, the AVAX coin reached significant price peaks of approximately $55 per coin, representing a considerable increase from 2020. Today, it costs ~$119. So, your $100 back in 2020 would be worth approx. $2900 today. It means that your investments would be subject to ~2900% increment in less than 18 months!
DOT takes a direct hit on all the blockchains present in the space by facilitating the cross-chain transfer of data or assets. Technically, Polkadot is an open-source sharding multi-chain protocol that seamlessly provides interoperability with other blockchains. The interoperability helps to establish a fully decentralized and private web controlled by its users and simplifies the creation of new applications, institutions, and services.
Polkadot’s protocol connects different chains and networks to allow independent blockchains to trustlessly share information and transactions through the Polkadot relay chain. The blockchain has its native token DOT that helps to provide network governance, perform operations, and create parachains (parallel chains) by bonding.
The price of one DOT coin in 2020 was just $5.1. In early 2021, the DOT coin reached significant price peaks of approximately $20 per coin, marking an almost 4X increase from 2020. Today, it costs ~$25. So, your $100 back in 2020 would be worth approx. $500 today.
MATIC is the real competitor of Ethereum blockchain as the latter face several issues such as poor user experience, high fees, and low transaction throughput. Polygon is on a mission to create ‘Ethereum’s internet of blockchains,’ making a multi-chain ecosystem of Ethereum-compatible blockchains.
Polygon was initially known as Matic Network, which came into existence by a team of four co-founders — Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. The network provides developers with a range of tools and functionalities for creating ultra-scaling and high-performance blockchains and decentralized applications (DApps).
The price of one MATIC coin in 2020 was just $0.015. In early 2021, the MATIC coin was trading at a level of $0.05, making an increase of approximately 300% in one year. Today, it costs $2.31. So, your $100 back in 2020 would be worth approx. $15,000 today. It marks a staggering growth of 15300% in less than two years!
Terra blockchain focuses on the fiat-pegged stablecoins (USDT, USDC, etc.) to power price-stable global payments systems. The blockchain combines the price stability of fiat currencies and their mainstream adoption with the censorship resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Terra blockchain has its native token named LUNA that stabilizes the price of the protocol’s stable coins. It incentivizes the holder of LUNA coins to swap their token and stablecoins at profitable exchange rates to either expand or contract the stablecoin supply to match demand.
The price of one LUNA coin in 2020 was just $0.20. In early 2021, the LUNA coin was trading at $0.1, making an increase of approximately 500% in one year. Today, it costs ~$83. So, your $100 back in 2020 would be worth approx. $41,500 today. It marks a staggering growth of 41500% in less than two years!
Ripple is a technology used as a cryptocurrency and a digital payment network for monetary operations. XRP’s founders are Chris Larsen and Jed McCaleb. Ripple’s currency exchange network and payments settlements system can process multiple transactions from all around the world.
Ripple’s open-source, decentralized network allows more effortless transfer of money in any form – yen, dollars, and even cryptocurrencies. It is a global payments network with many central financial banks that use XRP to facilitate transfers.
The price of one XRP coin in 2017 was just $0.006396. In early 2018, the XRP coin reached significant price peaks of approximately $3 per coin. Today, it costs $0.89. So, your $100 back in 2017 would be worth approx. $14,800 today. The percentage increment you would have garnered is ~15000% in less than five years!
The cryptocurrencies mentioned in the blog were subject to long research for providing users with the best investment this Christmas. The festivities have covered the cities with a joyous mood, which calls for building your investment portfolio for a better future.