3 crypto-currencies ready for monster rebounds in 2022

DDecember was a difficult month for most cryptocurrencies. With money generally coming out of investments with intimidating risk profiles, many big names in the crypto space are now trading well below recent highs.

While the global cryptocurrency space will likely continue to be very volatile in the near term, a panel of Motley Fool.com contributors identified three tokens that could rebound significantly in 2022. Read on to see why they are thinking than Ethereum (CRYPTO: ETH), Decentraland (CRYPTO: MANA), and Basic Attention Token (CRYPTO: BAT) could be poised to benefit from strong rebound momentum next year.

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Ethereum is about to do something that has never been done before

Daniel Foelber (Ethereum): The recent hype in the cryptocurrency market may seem serious. But zooming in on performance since the start of the year, it’s clear that all of the major cryptos are still up to par.

Ethereum Price Table

Ethereum price data by YCharts

Despite its quadrupling, Ethereum arguably offers the best risk / reward profile among the major cryptos. Maybe not next year, maybe not in 2023. But going forward, it won’t be surprising to see Ethereum become the largest crypto by market cap. This is because Ethereum is the primary network on which decentralized applications and smart contracts are built, either directly on the Ethereum blockchain or on a secondary framework or protocol like Chain link Where Polygon. Investors interested in crypto as an inflation hedge and store of value might be better off with Bitcoin (CRYPTO: BTC). But those looking to capitalize on utility and innovation may be more interested in Ethereum.

Ethereum may never be as safe and secure as Bitcoin. But its transition from a proof-of-work consensus mechanism to a proof-of-stake mechanism is expected to take place next year. When it does, Ethereum should get faster and more scalable because it will be supported by validators, not miners. This will lower transaction costs and make the network an even better place to develop projects, sell non-fungible tokens (NFTs), etc.

The big risk with upgrading from Ethereum 2.0 is the uncertainty that things will go as planned. If all goes well, Ethereum will be backed by thousands of additional validators, which will make it more decentralized. Sharing will also make the network exponentially faster. However, an upgrade from this scale to the largest blockchain by volume has never been done before. Therefore, investors must accept delays in the upgrade, knowing that in this situation, prevention is better than cure.

With a market capitalization of around $ 470 billion and the potential to disrupt nearly every sector of the global economy, Ethereum stands out as a great crypto for 2022 and beyond.

Crypto aimed specifically at the metaverse

James brumley (Decentralized): I have a feeling that most of the recently battered cryptocurrencies are poised for a good bounce here. Of those positioned to drive a sustainable lead after the initial rebound is over, my preference is Decentraland.

It’s a bit off the beaten track … for now. Although it’s been around for quite some time, this Ethereum-based crypto wasn’t developed until November, when the so-called metaverse really started to take shape as a concept. Decentraland is the way to pay for virtual plots of land and goods in the metaverse world also known as Decentraland.

Yes it does. While in a sense the word “metaverse” refers to the idea as a singularity, in reality there are already several of these digital spaces that are viable as income-generating gathering places. Microsoft (NASDAQ: MSFT), Facebook (NASDAQ: FB), and video game maker Epic Games are just a few of the companies already tinkering with these virtual worlds.

Decentraland is another such entry, but it’s one of the best-designed the (real) world has seen so far. It’s laid back, but more importantly, it’s entirely up to its participants, who can build and then monetize – or sell – the space they’ve set up, the virtual goods they’ve created, or the games they’ve created. they host. In other words, it’s entertaining. That’s why I suspect this will be one of the most successful destinations in the Metaverse.

BAT is supported by exceptionally strong leadership and fundamentals

Keith Noonan (Basic Attention Token): While the 2021 exchanges generally provided a very favorable backdrop for the overall cryptocurrency market, the second half of the year saw investors in the space move to app-backed tokens. . Bitcoin has climbed an impressive 73% since the start of the year, and the meme-token phenomenon Shiba inu has posted virtually unprecedented gains of over 47,000,000% across the stretch, but silver has generally moved into coins backed by networks and services that extend beyond mere currency and speculative investment vehicles.

For investors who want to profit from the transition to application-driven cryptocurrencies, I think Brave Software’s Basic Attention Token (BAT) is a top buy. Brave is run by JavaScript creator and Mozilla founder Brendan Eich, and its BAT cryptocurrency looks like one of the most attractive long-term bets in the space.

Brave’s web browser is currently at the heart of the BAT token value case, with users earning the cryptocurrency by watching ads through the platform. Brave is a privacy-focused web browser that has a built-in ad blocker as well as features to stop user data collection while browsing the web, but it has a unique twist: users can choose to allow and display advertisements from publishers who have partnered up through Brave and actually earn BATs for their time; hence the name “Basic Attention Token”.

With bearish pressures rocking the larger cryptocurrency market over much of December’s trading, BAT is now down about 30% from its high in late November. Brave Software’s excellent leadership team and potentially disruptive approach to the web browser and digital advertising markets indicate potentially explosive rebound potential.

10 stocks we prefer over Ethereum
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* Returns of the portfolio advisor as of December 16, 2021

Teresa Kersten, an employee of LinkedIn, a subsidiary of Microsoft, is a member of the board of directors of The Motley Fool. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Daniel Foelber owns Bitcoin and Ethereum. James Brumley has no position in the stocks mentioned. Keith Noonan has no position in the stocks mentioned. The Motley Fool owns and recommends Basic Attention Token, Bitcoin, Chainlink, Ethereum, Meta Platforms, Inc., and Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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