No, this year has not started out as any investor would have wanted. That has especially been true for anyone interested in the crypto market. Even the largest and most well-known cryptocurrencies are down by at least 20% or more.
Do not despair, though. There is still a long way to go before this year ends. Here are two cryptocurrencies that could still be big winners in 2022.
Ethereum (ETH) especially stands out as one of the most well-known cryptos that have crashed so far in 2022. The value of its native Ether coin is down to about 35%. However, there are two reasons to expect a big reversal for ETH.
Every big pullback for cryptos that we have seen in the past has presented an excellent buying opportunity. As the second-biggest cryptocurrency in the world based on market capitalization, ETH should bounce right back if investors flock back to cryptocurrency.
Perhaps a better argument about ETH’s comeback potential, though, is the major upgrade that is on the way. Originally known as ETH 2.0, this upgrade will eventually make the ETH blockchain faster, cheaper to use and more scalable.
The second phase of its upgrade is scheduled for later in 2022. The Beacon chain that has enabled staking will merge with the ETH mainnet. The third phase is scheduled for 2023. It will release shard chains that will dramatically grow the blockchain’s capacity.
Ethereum already comes in ranked as the most popular blockchain for creators. With this upgrade on the way, its appeal should only grow. And its price might once again skyrocket.
Terra (LUNA) has quickly become one of the leading blockchains. It currently comes in ranked at No. 9 on CoinMarketCap’s list of the largest cryptocurrencies based on market capitalization.
The cryptocurrency skyrocketed over 14,000% last year. There were numerous catalysts along the way. One of the largest came in Oct. with a proposal passing to start burning LUNA coins. Another was in Nov. with Terra stakeholders voting to begin upgrading the TrackTerra tax app. The upgrade has paved the way for LUNA to increase its popularity with governments around the world taxing cryptos.
But why might a stable coin be a big winner in 2022? Developers are increasingly picking the Terra blockchain to develop new decentralized finance (DeFi) apps. And Terra is not just a stable coin; it supports many other stable coins.
Also, owners of LUNA could earn big rewards by staking their coins. In a market that is highly volatile, Terra’s yields might be appealing.