4 Cryptocurrencies to Watch Out for in 2022

Cryptocurrencies such as TRON and Safle may provide investors with market-beating returns in 2022.

Diagonal chain made of zeros and ones. Cryptocurrency and mining.

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Investors with a long-term investment horizon and a high-risk appetite can look to enter the cryptocurrency space right now. In the past decade, several cryptocurrencies have generated exponential gains for investors, and this trend is likely to continue in 2022 as well, given the widespread adoption of digital tokens and the rise of institutional investments.

Here, we’ll look at four such cryptocurrencies that should be part of your shopping list in 2022.

TRON

Valued at a market cap of US$8 billion, TRON is one of the largest cryptocurrencies in the world. Its native digital token is the TRX, which is listed on more than 130 exchanges and in the last 24 hours, and the trading volume of the asset has surpassed US$1.5 billion.

TRON is already one of the largest blockchain-based operating systems in the world. The network has high transaction speeds compared to Bitcoin and Ethereum. The blockchain network’s scalability and a highly effective smart contract platform enable a wide variety of applications to be deployed on TRON, allowing it to support a large number of users.

Further, TRON’s reliable network structure and a higher degree of decentralization are tied to an improved rewards distribution mechanism.

Safle

A cryptocurrency that is valued at a fully diluted market cap of $US128.7 million, Safle has been flying under the radar until now. It’s a next-generation non-custodial identity wallet and blockchain infrastructure provider for the decentralized cryptoverse. Safle aims to provide security to manage and store over 500 digital assets with a master key that is protected by the user’s on-chain identity.

Given the risks associated with storing cryptocurrencies in a secure manner, Safle is focused on creating a platform where users and developers can access and build on decentralized infrastructures.

Right now, it’s difficult to build applications on a blockchain network, as the industry is at a nascent stage and knowledge is limited. It can be cumbersome for web developers to build apps that can integrate with blockchain networks, and Safle aims to solve this problem.

It already closed a $4 million funding round, which was led by MapleBlock, GSR, and Sanctum, among others.

QAN

Valued at a market cap of US$85 million, QAN cryptocurrency has risen almost 300% in the last three months. Developers and enterprises can build quantum-resistant smart contracts as well as decentralized applications in addition to DeFi solutions, and NFTs on the QAN blockchain network in any programming language.

QAN’s public blockchain network has a transaction speed of 1,600 per second, which is significantly higher compared to Bitcoin and Ethereum.

Its utility token called the QANX was recently listed on Gate.io, which is a centralized exchange. The listing should increase liquidity and demand for the QANX token in 2022 and beyond.

Selfkey

The final cryptocurrency on my list is Selfkey, which is a blockchain network that is building a digital-identity system to manage and process identity-based transactions. The blockchain identity management market is forecast to touch US$2 billion in 2023, up from just US$90.4 million in 2018, indicating annual growth rates of 84.5%.

The Selfkey network is built on the Ethereum blockchain and the KEY token was launched back in 2018. Additionally, the network’s flagship product is the Selfkey wallet where users can control their digital identity. The wallet is compatible with other hardware wallets that include TREZOR as well as Ledger.

Selfkey’s expanding suite of solutions will enable access to multiple fintech products and services going forward.

The Foolish takeaway

Investing in cryptocurrencies remains a risky bet, as it’s difficult to value these digital assets, unlike stocks. You need to look at the use cases of the underlying blockchain networks, which will impact demand for their respective native tokens over time. Allocate as much capital as you can afford to lose in cryptocurrencies.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.

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