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Top 5 Promising Cryptocurrencies for 2022!

We have officially entered the year 2022, and it is time to have a look at which cryptocurrencies are most likely to outperform their peers throughout this year.

1. Bitcoin (BTC)

Bitcoin (BTC) is the undisputed ruler of the cryptocurrency world, and we are no longer presenting it. As things are right now, it is setting the tone for the entire market. If it crashes, there is little possibility that other cryptocurrencies will appreciate in value.

It is absolutely necessary to hold Bitcoin if you own crypto currencies, in my opinion. Our asset is one of the least “moving” assets in today’s ultra-volatile world, and it can be regarded one of the most “stable” even if it gains or loses many tens of percent in a matter of hours in this ultra-volatile cosmos.

Institutions and banks all around the world have resorted to Bitcoin in the year 2022, seeing the potential of the cryptocurrency as an investment. They no longer hesitate to communicate about their bitcoin purchases, which contributes to the increase in its price over the long term. It is now undeniable that Bitcoin is seen as an investment in the same way that gold is regarded as such. While Bitcoin does continue to be volatile, those that invest in it for the long run are still ahead of the game, at least for the time being.

2. Loopring (LRC)

The scalability of the network is improved because to this layer 2 protocol based on Ethereum. It aggregates transactions together using a technique known as zkRollup, which helps to reduce the amount of network resources that are consumed. The Loopring network is able to perform more than 2,000 transactions per second while preserving the same level of security as Ethereum in this manner.

Another significant advantage is that transactions carried out on Loopring are not subject to any fees. Because of zkRollup, Loopring is able to keep transaction fees to an average of $0.00006 per transaction, a low cost that is more than offset by the fees charged for deposits and withdrawals on its platform.

As a matter of fact, Loopring operates its own decentralised exchange (DEX), which allows users to trade Ether for a variety of ERC-20 tokens, including the LRC, which is the cryptocurrency at the heart of the company’s operations. Furthermore, holders of LRC tokens can contribute liquidity to the protocol in exchange for a part of the fees collected by the exchanges that have been formed on the Loopring platform. Yes, in addition to providing its own DEX, Loopring may support any DEX that is provided by the user.

3. Matic Network (MATIC)

Ethereum is the platform on which most decentralized finance protocols are built today. A burden that bears down on the network, whose capacities are no longer sufficient to keep up with the demand. In its current state, Ethereum can only process 15 transactions per second, which is much too slow to satisfy the demands of the DeFi business on its own. The network becomes congested on a regular basis, resulting in a massive increase in transaction costs.

Matic Network, which is capable of processing up to 7,000 transactions per second and is one of the fastest networks available. This protocol is an excellent alternative to Ethereum, in addition to being fast, it is also eligible for staking, with an annual interest rate fluctuating between 25 and 35% .

The MATIC token is the native currency of the Matic Network, and it can be used to pay fees for decentralized applications housed on the network. It is a utility token that can be used to pay for decentralized applications hosted on the network. Additionally, De-Fi projects have chosen the Matic Network over the Ethereum network. This is especially true in the case of Aavegotchi, a community DeFi initiative that has been supported by Aave since its inception.

Matic Network is performing well in anticipation of Ethereum 2.0, which is expected to enhance the present capabilities of Ethereum. This trend is likely to continue in the future as well.

4. Polkadot (DOT)

In terms of real competitors to Ethereum, the Polkadot project immediately comes to mind as one of the most promising. We are not talking about another another “Ethereum Killer,” but rather about a project that has the potential to coexist with Ethereum in the future. Polkadot is an interoperable protocol intended to enable the development of Web 3.0, and it is being carried by the well-known Gavin Wood, co-founder of the Ethereum blockchain.

Polkadot is unique in that it unites numerous specialised blockchains into a single unified network, which makes it very appealing. It comes with DOT, a native cryptocurrency that may be used for a variety of purposes. Polkadot’s complicated architecture is totally interoperable with various blockchains due to the use of its numerous components.

The ability for Polkadot to link and secure distinct blockchains, whether they are public networks, private consortium chains, oracles or other Web 3.0 technologies, is a feature that has been developed. The Polkadot programming language, on the other hand, lends itself particularly well to the building of decentralised apps, giving developers with a variety of technical tools and, most importantly, adequate scalability capabilities.

Therefore, the DOT coin serves as the central component of Polkadot. The DOT, which serves as the protocol’s core engine, performs three primary functions: guaranteeing network governance, connecting the sub-blockchains to one another, and staking.

5. Solana

In terms of performance, the Solana network does not have to be embarrassed of its competition. Indeed, given the technology that has been built, the Solana protocol can handle 50,000 transactions per second. Eventually, the Solana development teams hope to build a network that can handle 700,000 transactions per second! Such results are comparable to those of traditional finance’s banking behemoths, such as the Visa network.

As a result, the Solana outperforms its main opponent, the Ethereum. At the moment, the Ethereum network can only handle between 15 and 45 transactions per second. In the realm of banking, a drop of water! However, the answer cannot be delayed since the Ethereum network is set to complete its metamorphosis to version 2.0, which will provide significantly improved performance.

There are several blockchains available today. While variety is desirable, connecting various blockchains will be a critical issue in the future. In this regard, the Solana network excels. Indeed, the Solana network has established a gateway that allows multiple blockchains to collaborate through Wormhole. In particular, the Wormhole connects the Ethereum blockchain to the Solana blockchain.