10 kings of the crypto revolution

In mid-2021, the value of the crypto market broke the $2 trillion mark. By the end of the year, it remained around $2.3 trillion. While Bitcoin accounts for a large part of this, there are many other asset-backed cryptocurrencies that are driving the crypto investing market.

Unlike memecoins, asset-backed coins have an asset behind them that gives them value. This can be fiat currency, which stablecoins like Tether or USDC coins are based on, or unique technology that solves a problem in the blockchain, smart contract, or DeFi industries.

In 2021, several new asset-backed cryptos broke into the top 10 most valuable cryptos and are expected to show a lot of promise in 2022. Of course, be sure to do your research before adding any of these cryptos to your portfolio.

1. Ether

Symbol: ETH

Asset: Decentralized, open-source blockchain with smart contract functionality that can host different dApps and cryptocurrencies.

Average price in 1st half of 2021: $1,950

Average price in 2nd half of 2021: $3,600

What experts say: 

“You are left with, as of today, 11 percent of the entire supply of Ether available and it’s going down every day. And the demand is going exponential. The only outcome is an exponential rise in price, there is no other outcome.” – Raoul Pal, former Goldman Sachs executive. 

“Ethereum does a better job of supporting development on its blockchain and will have a more lightweight proof-of-stake mining model than bitcoin [which] means that it can potentially be the backbone of web 3.0.” – Daniel Polotsky, founder of CoinFlip

What to expect in 2022: 

Ethereum 2.0 is set to be completed sometime in 2022, which will officially mean the platform will operate on a proof-of-stake system rather than proof-of-work. This will help improve Ethereum’s scalability, transaction speed times, lower gas prices, and improve sustainability. Although some predict that the platform may still deal with supply and demand issues, high gas fees, and network congestion. However, given that Ether is the second-largest cryptocurrency by market cap, it doesn’t seem like Ethereum’s popularity is going anywhere anytime soon, and these upgrades will only help the platform keep growing.

2. Avalanche

Symbol: AVAX

Asset: Programmable blockchain platform with smart contract functionality organized around the Avalanche Consensus Protocol. Claims to be the fastest smart contracts platform.

Average price in 1st half of 2021: $21

Average price in 2nd half of 2021: $67

What experts say: 

“While the market cap of AVAX has started catching up to larger competitors in the space – like Cardano and Solana – the protocol may eventually rival Ethereum in the near future. Ethereum has struggled to contain the costs associated with its gas fees, a problem Avalanche can take full advantage of going forward.” – Micah Carnahan, staff writer at Finder.com

“Avalanche is a newer crypto relative to the more established smart contract platforms [but] AVAX could soon become a blue-chip cryptocurrency” – Marcus Sotiriou, trader at GlobalBlock.

What to expect in 2022: 

After recently making a deal with major accounting firm Deloitte to use the Avalanche platform to help FEMA streamline its processes, AVAX saw a huge spike in growth, which could potentially continue if Avalanche makes other deals like this. In fact, according to Coinpedia, the price of AVAX could possibly reach $200 by the end of the coming year. 

In addition, Ava Labs, the company behind Avalanche, created a bridge between Avalanche and Ethereum, which enables an easy transfer of assets between the two platforms. Avalanche’s speed and interoperability make it a crypto to watch in the new year for those interested in adding it to their crypto investing portfolio.

3. Cardano

Symbol: ADA

Asset: Energy-efficient and sustainable proof-of-stake blockchain platform that utilizes the Ouroboros protocol, which is based on peer research and evidence-based methods

Average price in 1st half of 2021: $1.18

Average price in 2nd half of 2021: $1.86

What experts say: 

“Cardano is less than halfway through its road map, which lays out significant milestones for the project. It has only recently added smart contract functionality, meaning it is likely just over 40% of the way to achieving its major milestones. I have yet to see any reason not to consider ADA.” – (businessinsider.com).

“I’m really loving how the roadmap for 2022 Cardano is coming together. It’s a living ecosystem, growing, refining, adapting, and becoming stronger. The technology is unbelievable and we have so many great innovations coming to meet the hundreds of projects building on Cardano.” – Charles Hoskinson, Cardano founder

What to expect in 2022:

Cardano made a couple of huge partnerships in 2021 that will help increase the network’s adoption. First, they made a partnership with Dish Network, where the telecom company will use Cardano’s blockchain to optimize the company’s services and user experience. The second partnership is with crypto company Chainlink. 

The partnership will involve using Chainlink’s oracle services to give smart contract creators access to real-world, off-chain databases. In addition, after the Alonzo upgrade in September 2021, Cardano reached a milestone of 800 smart contracts launched on the platform. Cardano is only likely to see this number keep rising going into 2022.

4. Cosmos

Symbol: ATOM

Asset: Network that connects different blockchains together using its Inter-Blockchain Communication protocol. Calls itself the “internet of blockchains.”

Average price in 1st half of 2021: $15

Average price in 2nd half of 2021: $27

What experts say: 

“I think the biggest highlight was early this year when Inter-Blockchain Communications (IBC) launched on the Cosmos hub for the first time…we’ll see about 200 chains connected through IBC next year…Five years from now, I would expect that number to be tens of thousands, if not hundreds of thousands of chains linked through IBC.” – Peng Zhong, CEO of Tendermint

“We will continue our efforts to take Cosmos to a mainstream audience through partnerships, fostering innovation, and incubating talent. One exciting area for us …is our partnership with blockchain gaming platform Forte…With more than three billion gamers globally forecasted by 2023 and an explosion of interest around NFTs as in-game assets and collectibles, working with Forte will help propel Cosmos to a wider audience and cement our place as a leading blockchain ecosystem.” – Peng Zhong, CEO of Tendermint

What to expect in 2022:

Cosmos’ ATOM is one of the asset-backed coins that experienced tremendous growth throughout 2021. It began the year at $6.50 and reached a high of around $40 by September before dropping down to a little over $20 by the end of the year. According to Coinpedia, the ATOM crypto could possibly reach $40 or higher in 2022. 

In addition, the Cosmos network has around 250 dApps and services and recently started integrating DeFi capabilities into its ecosystem through the launch of its Gravity DEX. DeFi is likely to keep being a focus for Cosmos going into 2022, which could result in the network’s growth. If you’re interested in crypto investing, you could consider adding ATOM to your portfolio. 

5. Solana

Symbol: SOL

Asset: Decentralized blockchain that utilizes a proof-of-history system. Claims to be the fastest blockchain in the world.

Average price in 1st half of 2021: $24

Average price in 2nd half of 2021: $152

What experts say:

“Solana is one of the few currently existing public blockchains that has a really plausible road map to scale millions of transactions per second at…fractions of a penny per transaction, which is a scale that you need for this. That is not where a lot of other blockchains have been focusing, including Ethereum.” – Sam Bankman-Fried, founder and CEO of FTX exchange

“I’m confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap. It started off the year trading at around $2, now it’s changing hands on the deVere crypto app for about $200. It’s likely it will outperform both Bitcoin and Ethereum again next year…because of its masterful technology and its cost-effectiveness.” – Nigel Green, chief executive and founder of deVere Group

What to expect in 2022:

Solana has often been termed an “Ethereum killer” because of its fast transaction speeds and low costs. Its ecosystem includes projects that cover everything from DeFi, NFTs, gaming, and more. So far in 2022, Solana has announced it will be working on a project with Brave software. 

This partnership will involve integrating Solana’s blockchain technology and wallet support into Brave’s Web3.0 desktop and mobile browsers. This project, along with Solana’s explosive growth into the top ten cryptocurrencies, makes it one of the asset-backed coins to consider adding to your portfolio if you’re interested in crypto investing. 

6. Polkadot

Symbol: DOT

Asset: Open-source, sharded multi-chain network that integrates multiple blockchains and makes them interoperable

Average price in 1st half of 2021: $27

Average price in 2nd half of 2021: $31

What experts say:

“Demand for DOT could rise, and with it the price, with compensation for crowd loan participation following suit…To be sure, we can already see this dynamic in action with the number of staked DOT having decreased and staking rewards increasing. One thing’s for sure, the momentum Polkadot has gathered to date seems likely to carry on into 2022 as its rolling auction schedule picks up pace” – (investing.com)

“By the end of the first batch of auctions, somewhere between $4 and $4.5 billion worth of DOT is likely to be locked up for nearly two years, reducing potential sell pressure and circulating supply on the market. Not only does this demonstrate faith in Polkadot and DOT over that period, but it incentivizes hundreds of thousands of supporters to become active users in the ecosystem as it’s in their best interest. With the rise in contributors expected to continue, the Polkadot community and its burgeoning ecosystem will certainly be one to watch over the next 96 weeks” – (cryptoslate.com)

What to expect in 2022:

Polkadot is currently rolling out its multiple parachain system, a process it began only a few months ago in October 2021. The first five parachain slots will be ready to launch by mid-December 2021, and another auction for six more slots will be held in 2022. It’s doing this by holding auctions for a year-long lease on one of its parachains. 

Interested projects raise money in the form of DOT tokens through crowdfunding from members of the Polkadot ecosystem. A DeFi program called Acala received the first spot on one of Polkadot’s parachains after raising 32.5 million DOT, or $1.27 billion. As more companies are added to Polkadot’s portfolio, the network could see more growth in the coming year, a good sign for those interested in crypto investing. 

7. XRP

Symbol: XRP

Asset: Blockchain payment network created as an alternative to Bitcoin. It runs on the Federated Byzantine Agreement system rather than proof-of-work and aims to enable instant, trustless, and cheap monetary transactions around the world

Average price in 1st half of 2021: $0.76

Average price in 2nd half of 2021: $0.98

What experts say:

“I bought it for the reason that A) It does have use cases and it is being used, and B) The court case is a phenomenal risk/reward. It got heavily discounted in the price, and then I looked at it and thought, ‘Well, what’s it going to do? Fall 100% from here to zero? But if it gets solved, it’s [up] 10x.’ And I’m like, ‘Well that’s a no-brainer.’ Why would you not take a 10-1 risk/reward that has a catalyst around it?“ –  Raoul Pal, former Goldman Sachs executive 

“We’re seeing pretty good progress despite a slow-moving judicial process in the federal courts. Clearly, we’re seeing good questions asked by the judge, and I think the judge realizes this is not just about Ripple, this will have broader implications, and I think that’s a very good thing. I’m hopeful that certainly in 2022 there’ll be closure here.” – Brad Garlinghouse, CEO of Ripple Labs

What to expect in 2022:

XRP was one of the top three asset-backed coins by market cap, behind Ether and Bitcoin, and even rose above Ether in 2017 and 2018. In 2020, the United States Security and Exchange Commission filed a lawsuit against XRP’s parent company, Ripple, for raising money through an, “unregistered digital assets securities offering.” In other words, the SEC views XRP not as a digital currency, but instead as a publicly-traded security, which means it should have been following certain regulations. 

However, some are speculating that XRP will win the lawsuit against the SEC, which could potentially result in the price of XRP growing once again. But while XRP cannot be traded in the U.S., the crypto is widely used for crypto investing in other countries around the world. For example, Ripple recently announced a partnership with the Republic of Palau to create a USD-backed digital currency for the country. 

8. Terra

Symbol: LUNA

Asset: An open-source blockchain that hosts a variety of algorithmic stablecoins. The network uses the Terra protocol to create stablecoins that track the price of any fiat-backed currency.

Average price in 1st half of 2021: $9

Average price in 2nd half of 2021: $42

What experts say:

“Following its Columbus-5 upgrade in October, Terra is reportedly set to house over 160 new projects by early 2022.” – (cointelegraph.com)

“Terraform Labs has transitioned from an “app factory” incubating protocols like Anchor and Mirror in-house to an “ecosystem-enabler.” Our role has evolved to provide resources, connections, and other tools for third-party projects to be successful in their endeavors. With so many projects set for launch soon, we’re also exploring other routes for assisting ecosystem development such as bounty programs, educational programs, and new incentive models for community building.” – Do Kwon, Co-founder and CEO of Terraform Labs 

What to expect in 2022:

In late 2021, LUNA climbed past Dogecoin and Avalanche and found a spot in the top 10 asset-backed coins by market cap. Some experts predict the crypto could reach a price of $100 by 2022. 

Terra’s recent growth is also due to several new developments, including the platform’s Columbus-5 upgrade, new NFT marketplace, and $50 million investment from Chiron Partners, a venture capitalist firm based in Hong Kong. This partnership in particular is likely to spur Terra’s growth since the money will be used for adding different DeFi and NFT projects to the platform’s portfolio.

9. Binance Coin

Symbol: BNB

Asset: The native token of the Binance exchange, the largest crypto exchange in the world in terms of daily trading volume.

Average price in 1st half of 2021: $304

Average price in 2nd half of 2021: $484

What experts say:

“Binance coin is another gem that has the potential to explode in 2022. It is already one of the top performers in 2021, and if the market remains bullish in 2022, then Binance coin could trade at over $1000.” (trading-education.com)

“If this bullish trend continues, Binance will reach $800 by the end of 2022. Moreover, the first half of 2022 is going to show fast growth, up to $950. Then this rise will slow down, but no major falls are expected. With upcoming partnerships and developments, reaching $800 is quite optimistic in the price point of view but undoubtedly feasible for the near future.” (coinquora.com)

What to expect in 2022:

As the native token of the Binance exchange, the largest crypto exchange in the world in terms of daily trading value, the BNB’s growth is dependent on the growth of the exchange. 

Recently, Binance launched an automatic burning method to help regulate the supply and value of the coin. This new burning method is expected to increase the value of BNB, which is great for those interested in crypto investing who want to add the coin to their portfolio. In addition, Changpeng Zhao, CEO of Binance, has announced plans to open a global Binance headquarters in France in 2022, which could help boost Binance’s growth even more. 

10. Bitcoin

Symbol: BTC

Asset: Decentralized, peer-to-peer digital currency that uses a proof-of-work blockchain system

Average price in 1st half of 2021: $34,458

Average price in 2nd half of 2021: $50,278

What experts say: 

“My prediction is that it will continue to be volatile, however, the long-term trend will point upwards and it is going to more than double in terms of total market cap per annum on average.” – Kjetil Hove Pettersen, CEO of Norwegian Bitcoin miner Kryptovault

“I believe in 250K USD per BTC at the end of 2022 based on the huge number of Bitcoin mining companies that were founded in the United States in 2021. The last, but very important, key factor to maximize the BTC price increase will be bigger adoption of the use of the BTC wallets implemented in social media, such as Twitter.” – Bernardo Schucman, Senior Vice President of CleanSpark’s Digital Currency Division

“We saw a bull market in 2013, 2017, and we’re seeing it now in 2021. However, where we saw parabolic price increases towards the latter end of the 2013 and 2017 bull markets, we haven’t yet seen it this year, which suggests there could be further price increases to come before we reach the ultimate top.” – Simon Peters, crypto analyst at eToro

What to expect in 2022: 

As the original king of crypto and the crypto with the largest market cap, Bitcoin had to have a spot on this list. Bitcoin has a lot of potential in 2022 given the fact that it has been increasingly embraced by politicians. It has also seen recent institutional adoption by developing countries such as El Salvador, which made the crypto official national currency and is working to create the first Bitcoin City in 2022. Zimbabwe has also been considering adopting the crypto as official currency. 

In addition, Bitcoin has been embraced by some cities here in the U.S., such as Miami, which gives out Bitcoin dividends to its citizens. New York City is considering a similar plan, and the mayor of NYC, Eric Adams, pledged to receive his first three paychecks in Bitcoin. Bitcoin could see even more growth if this institutional support for asset-backed coins continues into the new year. 

The future of the asset-backed crypto

There are so many exciting asset-backed coins and projects going on in the crypto market. It seems clear that the market will only keep growing in the coming year as crypto companies keep developing innovations in the blockchain and smart contract industries. Remember that if you plan to participate in crypto investing, it’s important to do your research before jumping in and adding any project to your investment portfolio.