Cryptocurrencies have not had a strong start this year. Data collected by CoinGecko shows that the total market capitalization of digital coins fell from $2.04 trillion in January to roughly $1.9 trillion by April. Recovery efforts have stalled. In this article, we examine the most promising cryptocurrencies to buy and hold in 2022.
Ethereum
Ethereum, the second-largest cryptocurrency, remains one of the top choices to buy and hold in 2022. The platform is undergoing major upgrades that are likely to attract more developers and investors. Developers are transitioning the network from proof-of-work to proof-of-stake.
They are also introducing sharding, a concept designed to greatly increase transaction throughput. As a result, more developers may choose Ethereum to build their applications. Many projects already run on Ethereum despite its limitations, so there is potential for Ethereum’s price to continue rising throughout 2022.
Near Protocol
Near Protocol is another promising cryptocurrency to consider for investment in 2022. This proof-of-stake network has gained substantial traction among developers. Its team is implementing the Nightshade sharding upgrade to make the platform faster and more scalable.
To support this mission, Near Protocol raised nearly $350 million in April of this year. This fundraising followed an earlier round that brought in more than $100 million from investors. The capital will be used to grow the ecosystem and incentivize developers. Additionally, the token’s total value locked (TVL) in DeFi has grown to almost $1 billion, and it may continue rising this year.
Mina Protocol
Mina Protocol is a lesser-known cryptocurrency that could perform well this year. Its price has already jumped around 61% from its low this year. Mina is a blockchain project that uses ZK-rollups to help developers build applications quickly. The token has a market capitalization exceeding $1.1 billion.
Mina’s developers raised more than $92 million from venture capital firms. With an SDK scheduled for release in 2022, the platform could gain additional momentum. If adoption increases, Mina’s price is likely to rise as more people interact with its ecosystem.
Lido DAO
Lido DAO is a leading project in the decentralized finance (DeFi) sector. The platform operates across multiple chains, including Terra, Ethereum, Solana, Kusama, and Polygon, with its Ethereum and Terra deployments being the largest. Lido’s core business is providing liquidity for staked assets.
For example, Lido-staked Ether has a market capitalization of more than $9 billion, and Lido’s combined TVL exceeds $17 billion. The Lido DAO token itself has a market cap above $878 million. As more users embrace these networks, Lido DAO could rebound and grow further in 2022.
Anchor Protocol
Anchor Protocol is another relatively safe cryptocurrency to buy and hold in 2022. It is one of the leading DeFi platforms, with a TVL surpassed only by a few networks, and is the largest protocol within the Terra ecosystem.
Anchor allows users to deposit funds and earn yield while others borrow from the protocol. In early 2022, Anchor’s price dipped after developers announced changes to the monthly interest rate, which can rise or fall by 1.5% per month. Despite that volatility, Anchor remains a solid crypto play because its ecosystem continues to develop.
Bitcoin
Bitcoin is considered a safe cryptocurrency to buy and hold due to its dominant role in the blockchain industry. As the largest coin by market cap, Bitcoin often sets the tone for movements in other cryptocurrencies: many altcoins rise when Bitcoin rises, and decline when it falls. It is also one of the most widely held digital currencies worldwide.
Therefore, if the broader crypto market performs well in 2022, Bitcoin is likely to benefit. Institutional interest in Bitcoin has also been growing, adding to its appeal as a long-term holding.
Avalanche
Avalanche is a leading blockchain platform aimed at helping developers build fast decentralized applications. While Ethereum handles fewer than 20 transactions per second, Avalanche can process up to 4,000 TPS. It is also a relatively low-cost network, with average transaction fees measured in cents.
As Avalanche grew, its developers announced more than $400 million in investments to expand the ecosystem—initiatives like Avalanche Rush and a $290 million metaverse fund. These investments could support continued price appreciation through 2022.
Terra
Terra is one of the fastest-growing blockchain projects in the industry. The network is known for its stablecoins, such as TerraUSD, which has a market capitalization exceeding $16 billion. Terra has become a major player in DeFi, and some of the top DeFi applications in its ecosystem include Anchor Protocol, Lido, and Astroport. Given its rapid growth, Terra (LUNA) is a strong candidate for investment in 2022.
Chainlink
Chainlink is the largest decentralized oracle platform in the industry. Its primary role is connecting on-chain smart contracts to off-chain data—an essential service for many sectors, including DeFi and NFTs, which require reliable external data. Chainlink’s ecosystem secures more than $55 billion in value, and there is potential for its token price to continue rising.
Cronos
Cronos is another highly promising cryptocurrency with the potential for significant growth in 2022. The network has attracted many developers and supports hundreds of projects, with a combined TVL exceeding $4 billion, according to DeFi Llama. Notable applications on Cronos include VVS Finance, Tectonic, and MM Finance. Given this activity, Cronos’s price may continue to increase.