The explosive growth of Bitcoin in 2021, which culminated in a new all-time high, in 2022 turned
into an absolute decline for this cryptocurrency and the entire industry. At the same time, traders do not leave the market, paying attention to those assets that, despite the collapse, were marked by more positive dynamics.
We have compiled a list of the eight most effective cryptocurrencies based on data from experts. It should be noted that all cryptocurrencies are highly volatile assets, so it is impossible to predict the movement of their rate.
In 2022, the flagship cryptocurrency has lost almost 75% from its high, recorded at $69,000 in November 2021. The collapse of the first cryptocurrency was mainly caused by events that shocked the entire industry: the collapse of the Terra blockchain ecosystem (including the depreciation of the LUNA cryptocurrency and its related algorithmic stablecoin UST) and the default of the FTX crypto exchange. In addition, macroeconomic trends also affected BTC.
But by the end of 2022, Bitcoin began to consolidate below $17 thousand per coin. At the same
time, fears that an even bigger correction may await before the new BTC rally has not gone
Bitcoin’s immense popularity can also be explained by the fact that almost every entity whether it is a crypto casino or online shop supports BTC as a method of payment. The trend shows no signs of slowing down and is likely to continue in the future.
2022 was marked by a historic event for Ethereum — The Merge update. It allowed the altcoin network to abandon mining and switch to an energy-efficient Proof-of-Stake (PoS) model.
One of the main arguments of the supporters of the transition was the positive impact of staking on the Ethereum exchange rate. In fact, the value of ETH after September 15, when the “Merger” was completed, fell by 28% — from $1655 to $1210.
However, the Ethereum team claims that the price of the coin will rise as the updated consensus is adopted by the organizations that use this asset.
While the cryptocurrency market has been trading mostly in the red, in 2022 the XRP token recorded a significant increase. An important factor was the promotion of its issuing company Ripple in a lawsuit with the US Securities and Exchange Commission (SEC).
Analysts call the resolution of this lawsuit a powerful reason for a larger increase or fall in XRP, depending on the judge’s final decision. Until then, every turn in the case is an important factor influencing the token. But if the XRP community firmly believes in Ripple’s victory, legal experts warn that things can go either way.
Litecoin is not among the top ten cryptocurrencies with the largest market capitalization but this coin got a rating because of its interest in it, caused by the halving planned in 2023. Halving is a programmed feature of Litecoin, due to which every 840 thousand blocks the reward for miners is halved. The expected date is August 5, 2023. On this day, the reward for miners will be reduced to 6.25 LTC.
Interest in Tezos is caused by active developments in the blockchain of this cryptocurrency. In particular, its developers are focused on scaling the network through linear updates.
The advantages of Tezos include the presence of several smart contract languages, network support, and a developed NFT ecosystem. At the same time, Tezos was affected by the impact that the general market correction had on this cryptocurrency — since the beginning of 2022, this one has lost almost 85% of its value.
Interest in the VeChain project grew in 2022, a smart contract platform focused on supply chain management. Thus, its native VET token can solve the problem of unreliable data in sectors such as finance, energy, food and beverages, and others.
And despite the fact that the price of the asset is in line with the “bearish” trends in the industry, it is predicted that in 2023 interest in VeChain in social networks will reach a new peak.
Therefore, investors are closely monitoring its rate — at the present time, the token is trading at a price of $0.02.
Quant was among the “favorites”. The correction of the crypto market did not affect it as much as other projects. This project has set its sights on previous price highs.
For example, on October 14, QNT’s six-month social obligations rose by more than 130%, but the asset itself was a hit by macroeconomic factors — in particular, rising inflation. Since then, the asset has recovered above $100 per coin.
Zilliqa started out as a layer 1 smart contract blockchain, but over the past year, the project has grown its influence in the gaming space by joining the Blockchain Gaming Alliance and partnering with a number of esports teams. In 2023, the team plans to release its own WEB 3.0 game console.
The native token project ZIL was considered one of the best-performing assets in the industry until bear traders took over in November. The token is currently trading at $0.02.
To wrap it up
In conclusion, the cryptocurrency market experienced significant fluctuations in 2022, with Bitcoin losing nearly 75% of its value, and other cryptocurrencies facing similar challenges.
Despite the volatility, there are still promising cryptocurrencies worth monitoring in 2023. Ethereum’s switch to Proof-of-Stake and the upcoming halving for Litecoin are just a few examples. Other cryptocurrencies like XRP, Tezos, VeChain, Quant, and Zilliqa are also generating interest due to their developments and partnerships.
However, investors should be aware that the crypto market remains highly unpredictable, and the value of these cryptocurrencies may fluctuate significantly in the future.