The Promising Tokens of 2022
The Prospects of Metaverse Tokens
Since Mark Zuckerberg announced Facebook’s rebranding to Meta, developments in the metaverse sector have become mainstream information. Tokens from a number of existing metaverse platforms have turned into real-world earning opportunities. Unlike in-game currencies, metaverse tokens have value outside the game space as well as they are fungible coins.
The active development and implementation of new functionalities in the metaverse increases interest in their tokens. At the same time, the transparency that the developers of these projects demonstrate builds user and asset holder trust.
Another important factor that drives interest towards metaverse tokens is that, despite the general market decline at the end of the previous year, they have shown positive dynamics and rapid growth in the price throughout 2021. the Metaverse Index (MVI), which unites the largest projects of this sector, has grown by 490.5% since July 2021.
Domination Finance co-founder Michal Cymbalisty argues in a commentary to GOBankingRates that investors looking to immerse themselves in the metaverse should focus first on the most popular metaverse games and their tokens. Here and below, the data is based on information from CoinGecko and is current as of February 7, 2022:
- Axie Infinity (AXS). In one of the most popular games on the Ethereum blockchain, you breed your NFT pets and search for resources and earn tokens for activity. AXS tokens have increased in value by more than 6,700% during the year.
- Decentraland (MANA). The entertainment metaverse hosts festivals, concerts and even exhibitions. The token rate rose sharply with the growing popularity of NFTs. MANA tokens have gained more than 1,330% in the last year.
- Sandbox (SAND). The virtual world allows users to create and monetize plots of land in the game, as well as any other objects they wish. SAND has risen almost 3,500% in the past 360 days.
According to Altcoin Daily analysts, it’s worth paying attention to low-cap metaverse tokens, in other words, those that are relatively cheap at the moment but have good growth potential in the future. Such tokens include:
- The Theta Network (THETA). The video streaming infrastructure seeks to improve file uploading and transmission technology on a decentralized blockchain. Thanks to its patented data transmission technologies, the company has already attracted user attention. Experts foresee a coming boom in THETA’s popularity if it signs a partnership agreement with Decentraland or Sandbox.
- Realm (REALM). An open-source project in which users can create virtual ecosystems, travel between worlds using AR, mint collectible NFTs for exclusive exhibitions, stream live audio and connect with friends and fans. At the end of November 2021, the project was artificially pumped, and now its price has begun to decline. But according to analysts, Realm is waiting for a few more pumps, which could bring investors a significant profit if they buy the asset at the current price.
- Enjin Coin (ENJ). The Ethereum-based platform allows virtual goods to be integrated into the blockchain using NFTs and QR codes, empowering companies to interact with users through apps, games and websites. As the largest online gaming community development platform, Enjin has good community support. Over the past year, ENJ’s value has grown by more than 420%.
The Prospects for DeFi Tokens
Ethereum’s scalability problems gave the green light for the creation of many alternative blockchain networks and the development of layer 2 protocols. Amid this, the past year has been a boom for the DeFi sector, which has seen strong growth in project capitalization.
The investment appeal of DeFi tokens is primarily due to the development of stablecoins and DEXs, which have not lost relevance for several years. Some analysts argue that DeFi projects will lead to a change in the global financial system.
According to DeFi Pulse, the tokens worth paying attention to in 2022 are:
- DAO Maker (DAO). An Ethereum-based credit platform that provides stability to DeFi assets. DAO has fallen about 60% below its all-time high at the time of writing, following the general market trend.
- Compound (COMP). An open financial market whose protocols are based on ERC-20 tokens. It allows users to receive and issue loans in digital assets on a pledge. COMP reached its all-time high in May 2021; as of this writing, its price has lost about 80%.
- Uniswap (UNI). A DeFi protocol for exchanging ERC-20 standard tokens, as well as an automated market maker. The UNI token showed great dynamics during the last year, reaching a historical high in May, but as of February 7, 2022, its value also dropped by 76%.
- Terra (LUNA). A stablecoin regulated by algorithms. LUNA peaked at the end of December 2021, but amid a general decline, it too had lost about 50% by early February.
The end of last year and the beginning of this year marked a general decline of the crypto market, and DeFi tokens lost a significant percentage in value. This is primarily due to the negative news agenda surrounding decentralized finance. For example, last December, US Senator Elizabeth Warren said she considered the DeFi sector the riskiest and dangerous part of the cryptocurrency market. Per Warren, the lack of regulation in this area leads to a DeFi market that is full of scammers and does not guarantee asset protection.
Cybersecurity Token Perspectives
According to Chainalysis, cybercrime in the crypto sphere increased by 81% in 2021 compared to 2020. Last year, fraudsters managed to steal more than $7.7 billion in various cryptocurrencies. That is why many investors are looking to invest in cybersecurity tokens.
Analyst company Chainalysis reports that there are tokens in this area that are worth keeping an eye on in 2022:
- Utrust (UTK). A Portuguese payment platform that allows the acceptance of digital assets as cash. After the announcement in mid-January this year that Utrust was bought and moved to the Elrond Network blockchain, the price of the UTK token began to decline, losing nearly 30% within a month. It is predicted that the token’s value could more than double if Merchant Yield is successfully tested.
- CertiK (CTK). A cross-network protocol that assesses security and identifies vulnerabilities in creating decentralized blockchain applications. As of February 7, the value of CTK has risen more than 30% in the last 30 days. Due to its usefulness in securing DeFi’s most vulnerable sector, the token’s price could show a three-fold increase by the end of the year.
- Hacken Token (HAI). A group of companies dedicated to individual and corporate cybersecurity. The integration of the CER.live project and the CoinGecko trust rating has caught the attention of many crypto enthusiasts. Experts predict that the HAI token could grow by more than 400% by the end of the year, thanks to its usefulness.
Other Promising Tokens
Austin Arnold, a well-known crypto trader, highlights some tokens that can show impressive value growth this year. His list of recommendations includes:
- Solana (SOL). The main competitor of ETH, whose growth, according to the expert, will be favored by the Phantom wallet. In Austin’s opinion, SOL has all chances to become even more popular against the background of Ethereum network congestion.
- Polkadot (DOT). The project’s value was up 191% in 2021. And the launch of the DOT parachain auction late last year will positively influence the growth of the altcoin price in 2022.
- Cardano (ADA). Arnold believes that the PoS blockchain is well-positioned for growth thanks to development projects in the past year.
- Polygon (MATIC). The trader says that the token’s growth over the past year will lead to further appreciation in 2022. Polygon’s yield, according to CoinGecko, has risen more than 3,300% within the last year. At the time of this article’s publication, MATIC ranked 15th in terms of market capitalization.
- Chainlink (LINK). In the expert’s opinion, the platform is ready this year to show growth potential and renew its all-time high.
- Aave (AAVE) was the final token on Arnold’s list. He believes that the prospect of creating a mobile wallet for DeFi altcoin will contribute to its popularity and increase its value.
Bestchange analysts highlight the underestimated cryptocurrency Chiliz (CHZ). In their opinion, the sports coin may soar in value in the context of the Winter Olympics in China. Their forecast is already coming true — from February 4 to February 7, the token went up by more than 30%.
DappRadar reports that the most profitable cryptocurrency projects in 2022 will be NFTs, particularly blockchain-based games. Arcane expects that in 2022, traditional gaming brands will also enter the NFT market so as not to miss the opportunity to make money from the growing market.
The situation in the crypto market cannot be called clear-cut, as the high volatility of digital currencies makes investing in them very risky. Therefore, many experts can not agree on the assets that will bring the biggest profit this year. But they all agree that portfolio diversification is one of the most important aspects of both traders’ and hodlers’ success.