The crypto industry had a banner year in 2021, with record growth both in terms of newly issued crypto assets as well as significant financial inflows. Particularly, the digital asset ecosystem (DAE) welcomed at least 5,000 new cryptocurrencies in 2021 alone, making up for about 50% of the total cryptocurrencies in circulation.
Likewise, the crypto sector recorded an all-time high market capitalization in November 2021, when it surpassed $3 trillion, though it currently sits slightly above $2 trillion barely three months later.
In the same vein, a report by Chainalysis further revealed that the total crypto transaction volume grew to $15.8 trillion in 2021, up 567% from the previous year. If there is anything to take from these stats, it would be that the year 2021 was filled with enormous investment opportunities.
Sadly, while 2021 had its fair share of positive reports, it also turned out badly for many investors who may have fallen victim to several schemes, as there was also a boost in crypto crime.
According to Chainalysis’s crypto crime report, criminals stole a whopping $14 billion in cryptocurrency in 2021, marking an all-time high and a 79% increase from the previous year’s record. Chainalysis also revealed that at least $7.8 billion of the entire $14 billion worth of criminal activity was from scams.
Notably, the vast majority of the scams were associated with DeFi projects, suggesting that many victims were lured to invest in tokens that turned out to be a flop. One prominent method used by these scam perpetrators is what is called a “rug pull,” where bad actors steal from victims who funded their seemingly legitimate cryptocurrency projects.
“In nearly all of these cases, developers have tricked investors into purchasing tokens associated with a DeFi project before draining the tools provided by those investors, sending the token’s value to zero in the process,”
part of the report read.
While there are several means used by criminals to lure victims into purchasing malicious tokens, it is important for potential crypto investors to do proper research about any crypto asset before investing.
That said, we have compiled a list of the top 10 crypto coins with seemingly great potential for investors.
NB: Although the following lists are thoroughly researched, they are not to be considered financial advice. Thus, a potential investor must carry out further research about the tokens or perhaps read their whitepapers (if available) before considering a possible investment.
Top 10 New Crypto Coins to Consider in 2022
Ethereum (ETH): Ethereum is first a blockchain network, and secondly, a native crypto asset (ETH) of the Ethereum blockchain network. In other words, Ethereum is both a blockchain platform and a utility token.
Investment-wise, the Ethereum price has remained bullish for more than a year now. And even though 2022 started badly with Ethereum dropping below $3k, it has since picked up again and currently sits slightly above $3,100 per ETH.
More so, given expert predictions for an even more bullish year, Ethereum, which doubles as the world’s second-largest crypto asset by market capital, is definitely a token to consider in 2022.
Solana (SOL): Solana is a public open-source blockchain platform that is designed to host smart-contract-enabled projects such as decentralized applications (dApps), DEX platforms, NFTs, and much more.
Just like other blockchain networks, Solana makes use of a native cryptocurrency known as SOL, which is used to facilitate every transaction within the network and among hosted projects.
The Solana native token is gaining traction as a result of the activities of hosted projects ranging from DeFi applications to NFTs and GameFi applications, making it actively traded and, of course, a solid investment option.
In addition, the token that initially debuted in 2019, recorded an all-time high of about $259 back in November 2021. However, while it has since dropped below $100, industry experts project an upward trajectory for the ongoing year.
Aave (AAVE): Aave is a DeFi project that facilitates crypto loans, exchange, and investment. Specifically, the DeFi platform enables users to borrow a wide range of cryptocurrencies and at the same time, lend various assets in exchange for interest. To achieve this, the platform makes use of a native asset known as AAVE, which doubles as the platform’s primary transactional asset.
While project Aave is relatively new considering it was only launched publicly in 2020 (having kickstarted in 2017) as an open-source, and non-custodial liquidity protocol, it has since gained popularity within the DeFi ecosystem. In fact, its native token (AAVE) is rated by various analysts as one of the best crypto projects to invest in, given its seamless user experience as well as its easy-to-navigate platform.
In a space where many users complain about the complexity of using a DeFi platform, Aave protocol, on the other hand, allows users to lend and borrow cryptocurrencies with ease. Notably, by making use of ‘liquidity pools,’ which are operated via smart contracts, Aave automatically sets interest rates and collateral ratios, thereby projecting a high level of transparency among users.
If you are considering investing in what could be considered a sustainable crypto project in 2022, then Aave is definitely a good option.
Shiba Inu (SHIB): Hyped as the second most valuable and most promising meme token (after Dogecoin), Shiba Inu has had a bullish track record from the very onset. While it has been around for barely two years, Shiba Inu has proven beyond all doubt that, although being a meme token, it is capable of disrupting the crypto ecosystem.
Also, while it shares similar traits with Dogecoin, which on the other hand, mainly thrives on hype, Shiba Inu has rapidly grown into a more in-demand token. Notably, the launch of its native exchange, ShibaSwap, has further propelled the token’s usability, especially in the DeFi space.
More so, several crypto-friendly services including Travala, one of the world’s leading blockchain-based travel booking platforms, now accepts Shiba Inu as a viable payment method.
More specifically, Travala enables users to book over 3 million products and services ranging from hotel reservations to flight booking and tours using Shiba Inu among other popular cryptocurrencies. Hence, if you ever thought of investing in a meme coin, then Shiba Inu should be a top priority.
Cardano (ADA): Cardano is an open-source and decentralized public blockchain platform that facilitates peer-to-peer transactions using its native cryptocurrency known as ADA. Just like other host blockchain networks, Cardano also doubles as a level playground for developers to build decentralized applications as well as launch smart contracts.
Unlike most blockchains, which are mostly developed by professionals in the software development field, Cardano, on the other hand, was developed by a team of academics using peer-reviewed literature. Hence, given its scholarly approach, many crypto enthusiasts are of the opinion that it is more reliable and well-vetted than most of the other chain networks.
Although the development of Cardano began back in 2015, it made its way to the public space in 2017 when the platform officially launched. Ever since, the platform has hosted more than 140 projects and is still counting.
Investment-wise, Cardano’s ADA token has maintained a rather stable price since it launched, as it currently sits slightly above $1 per ADA, about a 65% drop from its all-time high of $3.10 recorded back in September 2021. That said, if you are looking for a relatively stable token to invest in, then Cardano is a great option.
Algorand (ALGO): Unlike most blockchain networks, Algorand is a blockchain cryptocurrency protocol with support for smart contracts.
Notably, it is sometimes called the “Ethereum Killer” because prior to the launch of Ethereum 2.0, Algorand was out to to solve the pre-existing blockchain trilemma, which implies that a blockchain must sacrifice one of three attributes—scalability, decentralization, and security—in order to effectively implement the remaining two.
In addition, Algorand seeks to expand the possible use cases for crypto assets by accelerating transaction speed while reducing transactional expenses at the same time.
Just like other blockchain platforms, Algorand is primarily designed with developers in mind, as they have access to necessary software development kits to create new applications, ranging from the metaverse to real estate protocols and microfinance etc., all of which are fuelled by cryptocurrencies.
Algorand’s native asset, ALGO, is used as the primary utility token across the network’s operations. ALGO is designed using the ERC-20 token standard, and while it is backed by the Turkish Lira, it is transferable on the Algorand blockchain.
The token is currently priced at $0.98, although it is projected to trade above $30 by 2030. Hence, if you are looking for a long-term trade opportunity, this might be a perfect option.
Ripple (XRP): XRP is the native token used for any product of Ripple Labs. Notably, the US-based technology company has worked on various products ranging from payment settlements, to asset exchange and remittance systems.
Unlike other popular cryptocurrencies like Bitcoin, XRP was created for banks and payment networks as a means of payment settlement, a money transfer system, and currency exchange. As a result, it is a less volatile stable crypto asset that poses a reasonable option for long-term investment.
Polkadot (DOT): Most cryptocurrency works within the reach of its host blockchain, which implies that some cryptocurrencies cannot work outside of a project that is not hosted on the primary host blockchain. While this is a common practice in the crypto space, Polkadot, on the other hand, sets out to change the narrative.
Specifically, Polkadot enables cross-blockchain transfers of any type of data or digital assets including cryptocurrencies, NFTs, and so on. In other words, Polkadot enables interoperation among previously incompatible networks like Bitcoin and Ethereum for instance.
By integrating various blockchain networks, Polkadot is able to change how cryptocurrency is managed and has spurred impressive growth since its launch in 2020. While it raced up to an approximately $55 ATH in November 2021, Polkadot’s native currency,
DOT, is currently valued at $19.11.
Binance Coin (BNB): Binance Coin (or BNB) is the native cryptocurrency of the Binance crypto exchange platform. It also doubles as the utility token of the Binance smart chain, which is a blockchain platform similar to the likes of Ethereum, Cardano, and so on.
Following its initial launch in 2017, BNB was primarily traded on Binance exchange. However, it has since evolved and now caters to more use cases considering that more projects are being hosted on the Binance smart chain. From merely facilitating trades on the Binance native exchange platform to facilitating payment processes and hotel/airline reservations, to name a few.
Having recorded an all-time high of $686.31, BNB is currently trading at about $430. The token is projected to surpass its previous ATH and possibly soar past the $1k mark before the end of 2022. Hence, it is a perfect option for any long-term investor.
Terra (LUNA): Terra is an open source blockchain platform, however, in its own case, for algorithmic stablecoins that are backed against traditional fiat currency. Terra also doubles as a payment platform on which these are traded while acting as a host chain for other wrapped cryptocurrencies.
Terra-backed stablecoins are addressed by their fiat counterparts such as TerraUSD, TerraEUR, and TerraGBP.
That said, the Terra network is powered by its native asset, LUNA, which acts as a counterweight for the wrapped tokens. More importantly, LUNA is used to mint Terra stablecoins as it facilitates exchange from fiat currency to the Terra stablecoin and vice versa.
Terra stablecoins and Luna work hand in hand and in accordance with the rule of supply and demand. For instance, users are incentivized to burn their Luna to make more Terra stablecoins when the price of a stablecoin climbs above the value of its pegged currency.
In the same vein, when the value of the Terra stablecoin drops below its base currency, users are encouraged to burn their Terra stablecoins to mint more Luna. Hence, as adoption of the Terra platforms grows, so too does the value of Luna, which ultimately makes it worthy of investment.