In 2020 cryptocurrencies saw a major rally, and as a result, many crypto stocks earned investors massive gains. We’ve seen this again in 2021. And although the industry continues to come with significant volatility, it’s clear that as more investors and institutions join the industry, the increase in popularity only continues to create opportunities, especially for those who were invested in the space early.
At the start of 2020, the total market cap of all cryptocurrencies was just US$192 billion. By the start of this year, that had grown to a little over US$750 billion. And today, the total value of all cryptocurrencies stands at a whopping US$2.5 trillion. And this growth should only continue in 2022.
Unlike past rallies that were driven by speculation, we have seen a major change start to take place in the last couple of years, with more investors, consumers, and developers turning to the world of cryptocurrencies and all that blockchain technology offers.
While Bitcoin and the idea of digital money were what started this trend, today, it’s the ability to run smart contracts on blockchain platforms like Ethereum that have given investors all the optimism that the space offers a tonne of possibility and potential for growth.
And especially with the ongoing changes to Ethereum’s network that should be completed in 2022, its native coin, Ether, is one of the best investments you can make in the cryptocurrency industry.
What are the upgrades happening to Ethereum’s blockchain?
One of the first changes that have already been implemented is that Ether tokens are now being burned to help increase the value of Ether by reducing the circulating supply. Since it started being burned in July, more than one million Ether or over US$4.2 billion has been burned.
Another major upgrade is that Ethereum is moving to a consensus mechanism called proof-of-stake. This is much more energy-efficient and should allow transactions to be cheaper and faster at the current level of volume that the Ethereum network is seeing.
Cheaper and faster transactions should help attract more users and developers to Ethereum’s blockchain network, increasing the demand and, therefore, the value of Ether.
Ether was already one of the top cryptocurrencies you could buy and the second most valuable coin in the space. But now, with these significant improvements coming to its blockchain network, it offers a tonne of potential to continue growing over the long haul.
Three top crypto stocks to gain exposure to the growth of the industry
Since these upgrades are expected to be completed and rolled out in 2022, you’ll want to position yourself ahead of time. Plus, the entire industry continues to see a consistent increase in popularity.
So generally, the earlier you gain exposure, the more opportunities there will be for significant growth. And given the slight pullback in cryptocurrencies over the last week, now is an excellent time to find a high-quality crypto stock to buy.
First, and the most straightforward investment to consider, especially because Ether has so much potential, is a fund that offers exposure, such as the CI Galaxy Ethereum ETF. However, this is one of the safer but slower growth options to consider.
Next to consider is a crypto stock that will benefit as the entire industry continues to see an increase in popularity, such as Voyager Digital (TSX:VOYG).
Voyager Digital is a cryptocurrency platform and exchange that offers users the ability to buy 60 of the most popular cryptocurrencies. It also offers the ability to earn an attractive yield on your assets — a service that’s highly demanded in the cryptocurrency industry.
The stock will continue to gain as more users are drawn to its platform, and if you need any indication of how popular Voyager is, the company’s token, the Voyager Token, has more than doubled in value over the last month.
And finally, you can consider a miner such as HIVE Blockchain Technologies, which offers investors exposure to both Bitcoin and Ether and can grow rapidly as the prices for the two are rallying.
So with all the potential that crypto stocks naturally have, and with the significant upgrades coming over the next year, now looks like an excellent time to invest.