The top five Web3 coins to watch in 2022

What is Web3, and which cryptocurrencies in this innovative new space hold the most promise? Here, we take a look at five projects with potential…

Web3 in neon blue light above a circuit board                                 
What are the top five Web3 coins for 2022? – Photo: Alamy.com
                                

Web3 has become one of the biggest buzzwords in tech. A term initially coined by Ethereum co-founder Gavin Wood, it refers to the next generation of the internet, one that aspires to take back control from centralised entities and ensure our personal information remains private. Blockchain technology and artificial intelligence are at the core of many cutting-edge concepts being explored, ostensibly without middlemen. Because of this, cryptocurrencies are also expected to play a major role in the next reimagining of the World Wide Web.

Here, we are going to highlight the top five Web3 coins to keep an eye on in 2022, and introduce you to the projects that are creating a buzz right now, from a blockchain-based metaverse that is attempting to diminish Mark Zuckerberg’s influence to a modern take on file sharing that aims to offer a more dependable experience than Amazon Web Services.

Web3 crypto projects with potential

1. Decentraland

Armchair critics among you will point out that Web3 and metaverse should not be used interchangeably. We agree, but still regard Decentraland’s MANA token as a Web3 crypto coin that’s worth watching.

Decentraland launched in February 2020, long before non-fungible tokens and metaverses were cool, giving it an all-important first-mover advantage. It offers a virtual world where plots of land can be bought via the blockchain. The Web3 crypto project has signed partnership deals with the likes of Samsung, which now plans to open a VR-fuelled version of its physical stores. In February 2022, JPMorgan also launched a virtual lounge within Decentraland (decorated with a roaming tiger and a framed photograph of crypto-sceptic CEO Jamie Dimon).

MANA might be regarded as one of the best Web3 coins to invest in because of the sheer opportunity that the metaverse presents right now. As JPMorgan itself predicted in a report, this bold new concept ”will likely infiltrate every sector”, from supermarkets to workplaces and from live entertainment to fashion.

2. Ethereum Name Service

Web3 crypto projects aim to empower users by giving them a say in how a decentralised organisation is run, and giving them the freedom to truly own assets. However, usability remains a huge sticking point. While clunky interfaces deliver a bad first impression for newcomers, wallet addresses, with their long string of random letters and numbers, are intimidating and unfriendly.

Ethereum Name Service changes all this by offering Web3 usernames, human-readable monikers that can be used for decentralised websites and crypto addresses (connor.eth, for example). It is a modern twist on the humble domain name, and it is already being used by hundreds of thousands of people.

3. Basic Attention Token

The top Web3 crypto organisations are addressing pain points that exist in our online lives right now, and one of those pains is advertising. Right now, everyday users are being monetised without their knowledge, content creators get a measly share of advertising revenues, and businesses launching campaigns suffer from low engagement and fraudulent clicks. As the name suggests, Basic Attention Token (BAT) rewards users for the attention they give to adverts. This means better outcomes for the brands attempting to reach new customers.

BAT is integrated within the Brave browser, which stops ads from following users around the web. This also ensures that pages load faster and use less mobile data. Other features include “truly independent” search (that’s a barb against Google) and free video conferencing. Data from Brave suggests the browser now has more than 50 million monthly active users, as well as 15.5 million users a day.

4. Chainlink

Other top Web3 tokens to keep an eye on include Chainlink. At first glance, the concept of this project seems incredibly complicated (what are “blockchain oracles for hybrid smart contracts” anyway?). But the concept makes a little more sense with a real-world example.

Chainlink is responsible for bringing authenticated real-world data onto the blockchain, enabling smart contracts to automatically execute based on this information. In August 2021, the weather forecasting giant AccuWeather announced it was launching a Chainlink node, bringing meteorological data to the blockchain. But this is more than about knowing whether it is going to rain in Birmingham tomorrow. Given how blockchain technology is being increasingly used to automate supply chains, this data can ensure things still run smoothly when forecasts change.

5. Filecoin

Amazon Web Services keeps the lights on for a dizzying number of online platforms, but back in December 2021, it suffered its third outage in the space of a month. Filecoin aims to offer a more reliable and cost-friendly alternative. Data remains decentralised because anyone with spare disk space can have a role in providing storage to the network, eliminating the single point of failure that is all too commonly seen with data centres. The project also marks a concerted move away from “fragile identifiers” such as URLs, ensuring that files are not lost.

FAQs

It can be, but success hinges upon having your finger on the pulse of the latest trends. And although Web3 may be here to stay, the short-term success of these tokens can depend on the wider health of the crypto markets. All of these altcoins tend to suffer outsized losses in value whenever bitcoin slides, and lingering uncertainty about the US Federal Reserve’s plans for raising interest rates in 2022 means BTC is pretty volatile right now.

This is difficult to determine. However, these cryptocurrencies have been known to spike off the back of significant adoption news. For example, Decentraland rallied more than fivefold after Facebook unveiled its rebrand to Meta. It enjoyed another boost when JPMorgan unveiled a virtual lounge in its metaverse. Keeping on top of the latest news stories could give you an upper hand.

There are a dizzying number of Web3 tokens out there. New cryptocurrencies are emerging all the time. Given how there are multiple decentralised storage providers wrestling market share away from AWS, and a plethora of metaverse platforms offering their own virtual worlds, it seems inevitable there will be consolidation in the years to come. As such, it is crucial to do your own research and find projects you really believe in.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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