Coins and tokens that can grow well in 2022.
In addition to Ethereum, many potential projects such as Avalanche, Fantom, Polkadot, Cosmos are expected to develop well this year.
The year 2021 marks the enormous growth of the cryptocurrency market. Large organizations are constantly investing money in platform projects that already have their own user base.
The decline at the end of 2021 leads many to fear that the “winter” of the crypto market will come in 2022. However, Motley Fool writer Keith Speights believes foundation projects are still going to grow strongly.
Ethereum (ETH) is currently the second largest cryptocurrency by market capitalization, but there is still an opportunity for ETH to continue to rise. 40 of the 100 largest crypto projects by market capitalization are based on Ethereum.
For this reason, Ethereum also has a correlation when the price of the over 40 coins increases.
The weaknesses of Ethereum are the high transaction costs and the long validation time. Ethereum 2nd generation with many updates in 2022, in particular the complete network conversion to the use of the Consensus Algorithm by Stake (PoS), will help this project to eliminate existing weaknesses.
Alternative platforms for Ethereum
Ethereum’s competitor is Avalanche (AVAX). At the end of 2021 there was a price explosion at AVAX, which was partly explained by Avalanche’s solution to Ethereum’s transaction time problem.
In addition, the gateway between Ethereum and Avalanche is used, which also helps this project to draw a lot of capital from the Ether ecosystem. According to Adam Cochran, an expert at the Cinneamhain investment fund, the continuous product launches of sub-projects and clear development plans this year have helped AVAX score points in the eyes of many investors.
Polkadot (DOT) is another bright name. The architecture of the project consists of 3 parts: the main chain (relay chain) is in the middle, the extension chain (parachain) surrounds and the bridge system. Such a structure increases the connectivity and security between sub-projects in the ecosystem.
In terms of transaction time or cost, Polkadot is no better than any other competitor. The two-chain structure and the concatenation have another strength, namely that, thanks to their high connectivity, they help many new projects to enter the chain more quickly. 2022 is a year worth waiting for polkadot when sub-projects are filled with parachain to create a full ecosystem.
Another promising platform with an architecture similar to Polkadot is Cosmos (ATOM). In order to solve the slow transaction problem of Ethereum, this project divides blockchain branches in a large chain into several “zones” and connects them via an inter-chain communication protocol (IBC).
Sub-projects are all developed using the Cosmos SDK platform for less management conflicts. In the long run, upgrading and developing a new component in an ecosystem made up of hundreds of blockchains will not take as long as other ecosystems.
Fantom (FTM) is the platform with the smallest market capitalization among the competitors of Ethereum. While this only ranks 30th on CoinMarketCap’s rankings, it is still a notable project.
Fantom uses acyclic routing (DAG) technology, which allows the network to validate a transaction in 2 seconds for a fee. 0.01 USD. In addition, the network has now completed the decentralized financial parts like lending, payment and has an NFT platform for its ecosystem.
The cryptocurrency sector is moving at breakneck speed. 2020 is the year of projects like Ethereum. The year 2021 is the breakthrough of many different parts of decentralized financing. 2022 promises to be a time of competition between large platforms and projects with connections to many different parties.