Are these the best altcoins to invest in for 2022?
With 2022 fast approaching, let’s look at some of the more interesting altcoins
- 1. Ether
- Trade Ethereum to US Dollar – ETH/USD chart
- 2. Polkadot
- Trade Polkadot to US Dollar – DOT/USD chart
- 3. Solana
- 4. XRP
- Trade Ripple to US Dollar – XRP/USD chart
- 5. Dogecoin
- Trade DogeCoin to US Dollar – DOGE/USD chart
In the world of cryptocurrency, there is bitcoin, and there is, seemingly, everything else. Such is the dominance that BTC holds in the public consciousness that every other crypto can be seen as an alternative to bitcoin, making them altcoins. But there is a very crowded market out there, making it hard to see what are the best altcoins to invest in in 2022. While we can’t necessarily answer that question definitively, we can take a look at some of the more interesting altcoins out there. You will have to do your own research and never invest more money than you can afford to lose.
Leading our list of top altcoins is ether. ETH had a box office 2020, delivering healthier gains than the likes of Bitcoin, and it has had quite the year so far, making many lists of the best altcoins to invest in in 2022. Your views may differ, though, so let’s put things into context.
On 3 February 2021, the same month it exceeded a billion transactions, it smashed through $1,644, and hovered around that figure until April. That’s when things really started to kick off. It started the month at $1,968 and spent April shooting up, reaching a high of a little below $4,077 on 13 May. Like pretty much every cryptocurrency out there, ETH was hit by the crypto crash of late May 2021, but things are still looking very optimistic for the coin. Despite a tough September, with an unexpected split because of a bug in late August, Ethereum remains the second most-valuable cryptocurrency.
There’s been a lot of excitement surrounding ETH, primarily because of the launch of Ethereum 2.0. Last year, 24 November marked a significant milestone for the debut of its transition to Proof-of-Stake (PoS), when enough ETH was deposited to pave the way for the launch of the beacon chain on 1 December. It’s going to be a painstaking journey, but the event could kickstart some bullish activity over the medium term.
It’s also shaping up to be one of the best altcoins because of how it’s going to be supported by PayPal, along with the likes of Bitcoin, Litecoin and Bitcoin Cash.
Should ‘altseason’ happen during the rest of 2021 and into 2022, analysts will be looking at the best altcoins to see whether they can compete with Ethereum’s recent all-time highs of $3607.44 in early November. One thing to note is that the coin has dropped somewhat since then, trading at around $3,750 on 15 December, but the coin had still managed to rise by a little under 500% over the 12 months to then, making it one of the best altcoins to keep an eye on.
Trade Ethereum to US Dollar – ETH/USD chart
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Polkadot is, in some ways, a newer kid on the block when it comes to the top altcoins. While the Polkadot blockchain, which aims to support other, user-created blockchains dates from 2016, the DOT coin as we know it dates from the middle of 2020, when a redemonination took place. The coin started off life in its new incarnation at around $2.75, before it got caught up in the crypto boom of early 2021. This bullish period saw the coin hit periodic highs of $48.36 on 17 April and $49.69 on 15 May.
While DOT was hit by the summer’s bear market, it got better in September and was trading consistently in the $30s, before going back into the $40s in October, before November saw it reach its peak, with it besting $50 for the first time that month on its way to an all time high of $55 on 4 November. While the time after that was not exactly kind to the coin, with it operating at around $25 on 15 December - less than half of what it had been worth about six weeks earlier - there is still some interest in this coin. The fact that it is one of the pioneers of what could be dubbed Blockchain 3.0 means that, while it may not necessarily be one of the best altcoins to invest in in 2022, it is certainly worth paying attention to. It will all depend on how it can recover from recent losses.
Trade Polkadot to US Dollar – DOT/USD chart
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Solana is a blockchain that aims to do what the likes of Ethereum do, only by using a slightly different method, and SOL is its native token. The system utilises something called proof of history as its consensus method, creating timestamps that show how much SOL someone held and when they held it. This is to make sure that the data reflected is accurate and people are able to access coins and systems in a fair manner. PoH is built on the same basis as PoS, so the technology that is used can run smoothly.
Anyway, while the coin, which launched in 2020, saw some impressive activity in the first few months of 2021, it ended up being hit by the events of 19 May, losing nearly half its value when it fell from a then-record intraday high of $58.30 on 18 May to an intraday low of $29.43 the next day. While the summer was tough for Solana, things got better as the end of August approached, when there was much excitement surrounding a Solana event called Ignition.
What is your sentiment on ETH/USD?
This turned out to be a “hackathon”, an event that saw programmers compete to present ideas for things that could run on the Solana blockchain. Regardless, the buzz surrounding both the coin and the blockchain saw SOL hit new heights, starting the month at $36.68 and finishing it at $108.48, a rise of more than 195%. The bull rush was not over yet, though, as the coin topped $200 for the first time on 22 October and it managed to get to an all time high of $260.06 on 6 November.
While the price of SOL went down, its price of around $160 on 15 December was still not only far higher than it had been a year earlier, but far better than it had been during the bullish crypto market of the first few months of 2021. This behaviour might just suggest that it’s not only been one of the best performing altcoins this year, but that it might also be one of the best altcoins to at least watch in 2022.
XRP had a reputation for delivering lacklustre performance. But during one week in November 2020, XRP surged by an astounding 126%. It is incredibly rare for an established cryptocurrency to enjoy triple-digit gains over a seven-day period, but that is what XRP did.
The other thing keeping XRP in the news is an ongoing lawsuit with America’s Securities and Exchange Commission (SEC). The SEC argues that XRP is an unregistered security, a claim that the company denies. A lot of XRP price analysis hinges on the company winning the case. If it loses, then things could go horribly awry. If it wins, the price could soar.
XRP’s record high of $3.84 in January 2018 will take a lot of work to match, with the price peaking at $1.32 in early November. It has since dropped back, and was trading at around $0.80 on 15 December. Nevertheless, this meant that it had risen, albeit modestly, by about 40% over the course of a year.
Amid XRP’s legal battle with the SEC, Ripple is poised to launch a new crypto service, called Liquidity Hub, in 2022. Designed for financial companies, it allows financial services firms to offer their customers access to cryptocurrencies. It is still early days, but ultimately the outcome of the much-publicised court case will determine the fate of the coin. Should the court rule in XRP’s favour, it will be one of the best altcoins to have invested in. On the other hand, if it loses, it could easily be one of the worst. Even more than with other cryptocurrencies, caution should be your watchword when it comes to dealing with this crypto.
Trade Ripple to US Dollar – XRP/USD chart
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It would feel a bit odd to talk about the most promising altcoins and not mention the joker in the pack, the crypto that started off as a joke and became one of the most popular altcoins, Dogecoin. This is the original memecoin, starting life as a parody of the crypto boom and somehow becoming something people pay attention to.
DOGE seems to act without any rhyme or reason. It surges and crashes in its own rhythm, which makes it interesting, if not a little bit dangerous. However, it is still worth looking at. DOGE surged by more than 8,000% over the first four months of 2021, making it one of the best performing altcoins and, although it was hit by the crash of late May, it still has potential. It remained comparatively stable, valued at approximately $0.26 by November 2021, but the events of late November and early December took its toll on it, seeing it trade at a little more than $0.17 on 15 December.
Tesla CEO and DOGE enthusiast Elon Musk has huge influence over DOGE’s market value. Elon Musk's SpaceX mission DOGE-1, which was fully funded by dogecoin, is still set to launch by early 2022. Despite criticism that arises from a coin linked so heavily to celebrity endorsement, its growth and popularity means people are looking at practical applications for DOGE. It is therefore one of the most promising altcoins out there. The push to the moon never gets boring, that’s for sure, even if, with the likes of shiba inu, floki, and other dogcoins coming onto the market and snapping at its heels, dogecoin is no longer the only dog in the yard.
Trade DogeCoin to US Dollar – DOGE/USD chart
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How many altcoins are there?
There are roughly 10,000 altcoins, which represents somewhere in the region of 60% of the total cryptocurrency market.
How to find good altcoins
The best answer is to do your own research. Have a look at the markets, see what’s growing, read what people are predicting, and find the best altcoins for you. You need to use your own judgement and remain cautious. You should never invest more money than you can afford to lose.
Which altcoins have the most potential?
As always, we can never be sure. There are the five we have mentioned but there are others, such as Bitcoin Cash, Chainlink, ICP, Ethereum Classic, Litecoin and Stellar Lumens and many more that could make up a list of best altcoins. Make sure to research them properly before you consider buying into them.