2021 was widely regarded as one of the best years for crypto assets. Many coins saw significant gains, and there was optimism that the momentum would carry into 2022. Since then, the market has cooled somewhat and lost some of the momentum from late 2021. Still, 2022 could be an important year for cryptocurrency investing. Here’s why:
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Overall risk across other asset classes, including equities, is currently elevated.
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Crypto is well positioned to outperform traditional assets by a wide margin in 2022.
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The crypto market has pulled back, creating opportunities for value-focused investments.
If you’re considering adding crypto assets to your portfolio in the coming months, here are three coins you may want to consider.
Ethereum (ETH)
Several positive developments have occurred on the Ethereum (ETH) network in recent months. The chain is moving toward a proof-of-stake consensus mechanism, which should improve scalability and energy efficiency.
Data source: TradingView
Ethereum is also expected to report record fee activity as more decentralized applications join its ecosystem. Given that ETH has retraced considerably from its 2021 highs, it could represent a compelling buying opportunity for investors focused on long-term network value.
STEPN (GMT)
Expectations around the rise of the metaverse have been strong in recent months. Many market observers view 2022 as a potential breakout year for metaverse tokens, so it wouldn’t be surprising to see projects like STEPN (GMT) gain attention. While numerous metaverse tokens warrant monitoring, STEPN stands out as particularly promising.
Shiba Inu (SHIB)
Shiba Inu (SHIB) made headlines last year with extraordinary growth. It has since given back a large portion of those gains, but that doesn’t mean SHIB is finished. The token could still deliver meaningful returns for investors in 2022, although likely not on the same scale as the previous year.