The most exciting thing about cryptocurrency investments is that when they explode, their value skyrockets. In 2021, we saw Solarium (CRYPT: SUN) increase by more than 10,000%. Land (CRYPTO:MOON) earned more than 12,000%. meme token Shiba Inu (CRYPTO:SHIB) it shot up over 40,000,000%.
What will be the next cryptocurrency to explode? Obviously, it's impossible to know for sure, especially since there's no guarantee if crypto is here to stay. However, we can pick out a few potential candidates who are capitalizing on current trends that include the metaversedecentralized finance, and artificial intelligence.
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8 Upcoming Cryptocurrencies That Will Explode in 2022
Here are the cryptocurrencies that could spark a significant bull run:
1. 1 inch
1 inch net (CRYPTO: 1 INCH) is a decentralized exchange (DEX) aggregator. decentralized exchanges allow users to exchange different cryptocurrencies simply by connecting a crypto wallet. There is no central authority that manages the exchange, and with many DEXs, there is also no need to sign up for an account.
Decentralized Finance (DeFi) was huge in 2021 as many crypto enthusiasts used DEXs to trade cryptocurrencies. 1 inch is a simple way to get the most out of your crypto when using DEXs. Instantly compare prices across hundreds of different platforms to find the best rate for you.
While the aggregation protocol is extremely useful, it is not all that 1 inch offers. Other 1-Inch products include a limit order protocol that allows you to set specific trading conditions and 1-Inch Profit, which offers annual returns of 5% to 10% on stable coins
2. render
Metaverse tokens have been popular lately due to the growing interest in virtual reality and digital worlds. Many of these tokens are digital currencies used within the metaverse, but render token (CRYPTO:RNDR) it's very different
Render is a decentralized GPU rendering network. It is designed to connect digital creators like artists and studios in need of GPU computing with partners who are willing to lease their unused GPU computing power. Digital creators pay GPU vendors using Render Tokens.
Your metaverse apps could make Render a good investment in cryptocurrencies this year. It is also worth noting that world coinbase (NASDAQ: CURRENCY)one of the top cryptocurrency exchanges, Render began trading in February. Every time a cryptocurrency is available on Coinbase, it is exposed to a much larger audience of potential buyers.
3. Aave
Aave (CRYPTO:AAVE) it is one of the most popular and easy to use loan protocols. Users can borrow and lend many different types of cryptocurrencies. If you deposit your cryptocurrency with Aave, you will receive interest payments for lending your funds.
One of the reasons Aave has outperformed other lending protocols is its unique features. Borrowers can switch from fixed to variable interest rates and vice versa. Aave is also known for its FlashLoans, which are loans that do not require collateral. However, they must be refunded in the same transaction.
Aave is a governance token, which means holders can vote on the future of the protocol. They also get discounted rates when using Aave services.
4. Sushi Swap
Automated Market Makers (AMMs), which are decentralized exchanges that run on smart contractsgrew quite a bit in 2021. While there are a lot of MMA, sushiexchange (CRYPTO: SUSHI) could be the one who is most prepared for a big race.
SushiSwap supports over a dozen different blockchains, allowing it to offer some of the most competitive rates. It is also one of the best options for betting crypto. It offers a wide variety of liquidity pools and makes it easy to see the APR you can earn from each.
What makes SushiSwap a better choice over other AMMs like uniswap (CRYPTO:UNI) and pancake swap (CRYPTO: CAKE)? The SushiSwap app offers arguably the most user-friendly experience, but its market cap is still only a fraction of the other two.
5. Search.ai
Search.ai (CRYPTO:FET) is a cryptocurrency project that promises artificial intelligence for everyone. The developers have created a blockchain platform that uses artificial intelligence and machine learning to provide users with digital twins.
These digital twins are designed to make life easier for the user. For example, your digital twin might:
- Schedule in-home services at a time that works best for you.
- Find exclusive parking spaces near a destination.
- Automate everyday tasks like ordering food.
Entrepreneurs could also use digital twins to save time and run their businesses more efficiently. A digital twin could handle contracts, payments, event scheduling, and much more.
6. rain
deluge (CRYPTO:ILV) is an open world RPG adventure game. Players can explore the world of Illuvium, progress through a story mode, and capture creatures called Illuvial. Each Illuvial is a non-fungible token (NFT) which is stored in your wallet when you capture it.
There is a lot of hype around blockchain games right now, especially after the success of axie infinity (CRYPTO:AXS). The challenge when invest in game coins is to find quality projects. Illuvium is still in development, and while there's no guarantee it'll be a hit, it looks like it could win over players.
An Illuvium trailer released in 2021 looks much better than your typical blockchain game. The large roster of unique creatures is also something that could draw players in and keep them coming back.
7. Basic care sheet
Most of us wouldn't mind being paid to surf the Internet. With Basic care sheet (CRYPTO:BAT)can.
All you need to do is install the company's Brave browser. This browser replaces the usual internet advertisements with advertisements that pay you in rewards, specifically in BAT. By using Brave, you are the one who gets paid for your internet ad views instead of other companies.
Brave has a long way to go before it is competitive with the biggest web browsers, but it has over 50 million monthly active users, making it one of the most successful crypto projects to date.
8.XRP
XRP (CRYPTO:XRP) is the native cryptocurrency for Wave, a payment protocol that uses blockchain technology for fast and cheap transactions. Ripple was designed to make international transfers easier and has partnered with hundreds of financial institutions using its technology.
Ripple has been around since 2012, but was embroiled in a Securities and Exchange Commission lawsuit in late 2020. That led to most major US crypto exchanges delisting XRP.
The biggest problem for Ripple has been demand, but XRP is still one of the biggest cryptocurrencies. As Ripple's legal troubles come to an end, there is a good chance that exchanges will start carrying it again and it will attract more investors.
Should you consider investing in the next crypto to mine?
It is tempting to try to find the next big cryptocurrency. Even though you could make incredible profits this way, it's also difficult, time-consuming, and extremely risky.
For starters, you'll need to look outside of the market leaders for cryptocurrencies. Smaller cryptocurrencies have higher growth potential, but are also more likely to fold, so there is a higher chance of losing your entire investment. To balance that out, you may want to put some of your money into cryptocurrency stocks or large cap coins.
Researching those smaller cryptocurrencies takes time. And even if a project looks like a sure winner, anything can happen in the crypto market. Your carefully researched investment might go nowhere, while a virtually worthless cryptocurrency is going to the moon just because it has "Shib" or "Doge" in the name.
Following cryptocurrency trends or trying to predict them is not a good investment strategy. There's nothing wrong with giving it a try, but keep your expectations and the amount you invest very low.
