The number of digital assets is constantly increasing. It is becoming increasingly difficult to identify the best projects for profitable investment. In today’s article, based on buidlbee.com, we will analyze the TOP promising altcoins of 2022 with great potential and excellent foundation.
What are altcoins
Altcoins are all cryptocurrencies, except Bitcoin. Bitcoin is the first cryptocurrency built on blockchain technology. Back in 2009, this system seemed fantastic, but after the explosive growth of BTC in 2013, society began to think that bitcoin needed to create competition. Today, more than 1,200 altcoins are trying to compete with BTC.
In July 2022, the cryptocurrency market is valued at $1 trillion. Over $418 million has been invested in bitcoin. The value of existing units of Bitcoin is almost 2.3 times that of the second largest coin, Ethereum, and almost half of the total crypto market capitalization.
TOP-5 lesser known altcoins to invest
Let’s take a look at the top most promising altcoins in 2022.
1. Cardano (ADA)
It is a decentralized protocol that aims to make up for the shortcomings of Ethereum. Cardano uses a PoS (Proof-of-Stake) system instead of PoW (Proof-of-Work). This means that the currency does not consume as much energy as Bitcoin and Ethereum. Cardano staking can also earn rewards, usually around 5%.
- Over 50% of Cardano wallets are staking;
- This currency is much more decentralized than Ethereum;
- In most cases, Cardano has a higher turnover than Ethereum;
- Some facts indicate that Elon Musk is associated with Cardano.
2. Ripple (XRP)
It was created as a solution for payment systems, while the architecture of a distributed data registry is fundamentally different from standard blockchains. With the help of Ripple, any assets can be transferred almost instantly, the commission is an order of magnitude lower compared to standard cross-border bank transfers. In 2022, the XRP token does not update its historical highs, following the example of Bitcoin, but it is consistently held in the TOP10 by capitalization.
3. Avalanche (AVAX)
Avalanche is often compared to Ethereum as both support smart contracts or collections of code that execute a set of instructions on a blockchain. This technology is critical to decentralized financial services (DeFi), applications, and non-fungible tokens (NFTs).
Avalanche is designed to be faster and cheaper to use than Ethereum. It can process 4.5 thousand transactions per second, while Ethereum can only process about 13.
The value of AVAX has risen in a short period of time. As with other cryptocurrencies, before investing, you should take into account that its price can fluctuate greatly. And, as experts say, investing in one blockchain is risky, because it is difficult to determine the winner in the early stages.
4. VeChain (VET)
The current rate of the VeChain cryptocurrency is $0.021741. The market cap is $1,580,111,813. VeChain price has increased by 2.75% in the last 24 hours. The daily volume is $182,420,982. She takes care of the 34th place among all cryptocurrencies.
VeChain (VET), the native token of the VeChainThor blockchain network, was founded in 2015 by Sunny Lu. This is a fairly popular first-level platform, the main purpose of which is to provide institutions and enterprises with technological solutions that meet their individual needs. She also plans to help companies create decentralized applications (DApps) that work with the Internet of things.
5. Chainlink (LINK)
Claims to be in the TOP10 in terms of capitalization. ChainLink provides a secure connection between information providers and consumers. Due to the decentralized system of special nodes (they are called oracles), the protection of information is guaranteed both inside and outside the blockchain.
Key features of the coin:
- The high value of the project due to the limited amount of coins – in the amount of 1 billion rubles;
- The company owns only 30% of the coins, which is enough to guarantee stable growth of the asset in the future;
- The manufacturing company cooperates with SWIFT, which has a positive effect on the cryptocurrency quote;
- Chainlink is non-minable.
Within the framework of one material, it is impossible to list all the altcoins that deserve attention. The specificity of the cryptosphere lies in the fact that it is impossible to predict in advance a project that will “shoot” in the next few months. Above are some of the well-proven coins. These are not absolute newbies, they have a good reputation, they are in demand and do not fall out of the TOP30 in terms of capitalization.