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2021 brought a fair share of both positive and negative impacts to the digital currency industry. While some cryptocurrencies experienced 10,000% growth or even more, a few just disappeared in thin air. People are also impressed with the underlying blockchain technology making amazing moves across different sectors. Not just in 2021, throughout the history of cryptocurrency, Bitcoin and Etheruem have led the race in the front. Since 2021 has finally come to an end as of today, we explore the potential of other cryptocurrencies to sustain major blows in 2022.
Although the digital token sphere is experiencing a rough month before the end of 2021, the whole year made many breakthroughs and brought new developments under the spotlight. Starting from the outbreak of Covid-19 to Tesla accepting Bitcoin payments, El Salvador legalizing Bitcoin transactions, Bitcoin ETF's debut in NYSE, and Facebook creating an entire metaverse with currencies, most of the improvements went in favor of cryptocurrencies. On the other hand, we also faced environmental concern issues and China imposing a blanket ban on cryptocurrencies, which eventually affected the digital tokens' prices. With every day bringing 50-100 new cryptocurrencies to the market, currently, there are over 10,000 digital tokens in circulation. 2022 is anticipated to introduce even more virtual tokens and take the numbers to a much higher count. However, not all cryptocurrencies can sustain the race as the coming year might have some negative surprises for us. In this article, we take you through cryptocurrencies that will manage to make it through 2022.
The cryptocurrency market is well known for its volatility. If the stock market experiences 10% growth over a short span of time, it is considered a major hike. However, even a 10,000% value spike in a year is very common in the digital currency sphere. Therefore, instability and price swings are inbuilt with the cryptocurrency market. Experts predict that some digital tokens' prices might get double times what it is today.
The cryptocurrency came to notice in 2017 during the Bitcoin rally. While some people invested in digital tokens at that time, the actual breakthrough happened in 2020 when Bitcoin made new records, which eventually put other subsiding cryptocurrencies in the spotlight. But experts say that the rally that started in 2020 will come to an end in the first quarter of 2022 and the market will encounter new challenges and learn to stand on its own. During this time frame, some cryptocurrencies will make it big, while others will crumble and eventually disappear.
Cryptocurrencies will eventually tumble at another spot called 'government regulations'. Already China has imposed a blanket ban on cryptocurrencies. But experts have raised a question on 'who the actual loser is?' Because skipping the blockchain wave might put China at the risk of losing major disruption. On the other hand, countries like India are planning for new guidelines that make maximum use of blockchain technology without supporting cryptocurrencies.
After the success of Bitcoin, many altcoins emerged in the market. Altcoins mostly follow the footprint of BTC to maintain its pace. On the other hand, we have stablecoins that are pegged to fiat currencies or a power source to support its value. But one thing that is left hanging is memecoins. Cryptocurrencies like Dogecoin and Shiba Inu that have emerged out of jokes and online memes might have a rough year ahead. Even after recording a 3,000% growth, Dogecoin has been on a downward trajectory for a few months now. This collapse is expected to continue in 2022 and eventually, it will decide the fate of the native memecoin.
Meanwhile, Shiba Inu rose to popularity only in 2021. After a brief buzz and outperforming Dogecoin for a little while, this memecoin went back to its original spot and is making no noise. Since Memecoins are generally backed by famous figures and honest followers, only they can save SHIB and help the digital token make a comeback in 2022 if possible.
With the cryptocurrency market capitalization touching US$3 trillion, the mood is compared to the craze for dotcom companies that turned everything upside down at the beginning of the century. Although we have thousands of cryptocurrencies in circulation, crypto enthusiasts will continue to support the top 20 most-traded tokens in 2022 as well. Some of the currencies that are expected to stay strong in the year are listed as follows.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
