Yahoo Finance 3 cryptocurrencies that could outrun Bitcoin in 2022
Bitcoin's unprecedented growth over the past 18 months has priced many new investors out of the market but that doesn't have to mean you've missed the cryptocurrency train altogether.
With more than 8,000 digital currencies in existence, there are many potential opportunities to help get your 2022 off to a prosperous start.
Also read: Crypto: Ethereum outshined bitcoin in 2021, up over 260%
Also read: The top 5 cryptocurrencies to keep your eye on in 2022
Also read: Crypto: There may be 'more paper promises to bitcoin' than actual bitcoins
So, let's explore three cryptocurrencies that may very well outrun Bitcoin and explode.
Ethereum (ETH-USD) ranks as the second-largest cryptocurrency, with a total market value of approximately US$450 billion. Although its market cap is just half that of Bitcoin's, Ethereum significantly outperformed, seeing gains of more than 400 per cent.
While Bitcoin remains the top dog, there are visible signs Ethereum could be on track to take the crown.
The main reasoning behind this is that Ethereum operates as a decentralised network on top of which many applications can be built. Many cryptocurrency tokens are issued over the Ethereum network.
Ethereum is now up more than 56,700 per cent during the past five years, surpassing Bitcoin. This trend seems likely to continue into 2022.
Solana (SOL1-USD) enjoyed incredible gains in 2021, catapulting more than 10,000 per cent, due to a combination of experimental energy and the network's rise as a launching ground for blockchain-based applications.
Like Ethereum, Solana's blockchain serves as a foundation for things such as non-fungible tokens (NFTs) and DeFi applications.
Solana was founded by Anatoly Yakovenko and is a direct competitor to Ethereum. Plus, it has a big advantage: rapid transaction-processing capacity.
While Ethereum's blockchain can process transactions at a rate of about 13 per second, the Solana network can handle as many as 50,000 per second.
Solana is the world's fifth-biggest cryptocurrency, with a total market capitalisation of $54 billion.
Avalanche (AVAX-USD) is the smallest of these three cryptocurrencies, based on total market capitalisation.
But don't be fooled by its size. Avalanche holds 11th spot on CoinMarketCap's ranking of the top cryptocurrencies after soaring close to 3,350 per cent in 2021.
Avalanche is often compared to Ethereum, because both have smart contract capabilities. Smart contracts - or collections of code that carry out a set of instructions on the blockchain - are crucial in running DeFi and NFTs.
Avalanche aims to conduct faster transactions with lower fees than Ethereum, making it somewhat easier to use for beginners.
Keep an eye out for these three cryptocurrencies and always remember to do your own research.
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