This first quarter of 2022 has been a rough year for cryptocurrency investors. Since November 2021, most major coins fell by 40% or more.
According to data from CoinMarketCap, the global crypto market capitalisation has plunged from almost $3 trillion in November to $2. trillion at press time. Rampant inflation and geopolitical tensions in Europe have not helped matters too. The unrest and attacks between Russia and Ukraine caused a sort of ‘crypto winter’ for weeks.
Although a repeat of last year’s ‘crazy’ bull run, especially in the first quarter, is unlikely, there are signs that prices of digital assets might be stabilising. Major coins like Bitcoin, Ethereum, Cardano, Terra, Solana and Dogecoin are up 8.18%, 11.75%, 36.14%, 8.81%, 19.51%, and 16.43% respectively in the last 7days.
Now that it seems the coast is clear and a sense of normalcy has been restored, patient investors have an opportunity to buy cryptos at reasonable prices.
Below are 3 coins that investors and traders should ape in:
Ethereum is the second-largest crypto in the market, with a market cap of $375 billion. An overwhelming number of decentralised applications continue to use the network – over 3,000 DeFi apps. In addition, the rapid growth of NFTs has provided further momentum to Ethereum.
Despite high gas fees, the platform still accounts for the highest portion of total funds staked in DeFi projects. According to DeFi Llama, Ethereum dominates the DeFi space with almost $115.8 billion TVL, representing more than half of the total value locked in DeFi apps. Given such an over-subscription, investors are bullish on the planned upgrade.
The full launch of Eth 2.0 is expected to be a key catalyst for digital currency. It will help the network transition to a proof-of-stake (PoS) protocol, reducing transaction costs and improving network speed.
The Ethereum team recently burned a significant portion of ETH coin supply to mitigate the impact of spam transactions that could essentially ruin the user experience for everyone. Such loopholes are important to plug and for the investors, the burning provides an intriguing potential equation: lower supply, larger demand.
Although, ether, the native token of the Ethereum blockchain is down approximately 40% from its $4,891 November peak. Despite the decline, it has a 77% YoY increase. Now is the best time to invest in the largest decentralised network as the Eth2.0 momentum mounts.
Avalanche is targeting a significant portion of the smart contract and decentralised finance (DeFi) market. The network boasts a thriving decentralised finance ecosystem, growing rapidly with over 360 new projects over the past 18 months.
The native token – $Avax, has a 22.66 billion market cap and is currently trading at $84.78, up 6.28% in the last week. Users point out that the network offers nearly instant finality, meaning that a transaction is completed to the point of no return.
Avalanche stands out among its peers by offering a platform with three separate blockchains. Each blockchain focuses on a dedicated task, allowing the network to provide ultra-fast transaction speeds and low fees. In addition, the platform uses two separate consensus mechanisms to ensure the safety and integrity of its network.
With the utilities and rate of adoption of the Avalanche Blockchain, AAVE is one of the coins you should consider investing in.
$AAVE is a DeFI protocol that allows crypto users to lend and borrow cryptocurrencies, earning rewards. AAVE ended 2021 as one of the best DeFi tokens of the year and has continued in the same vein. Since 2020, the project has seen patronage by many investors, which has massively impacted AAVE.
The fact that people can lend and borrow up to 20 cryptocurrencies remains a big selling point of the project. Going by projections, the token will hit more highs in 2022 as demand continues to shoot up.
With a $2.32 billion market capitalisation, AAVE has fallen far from its ATH price of $666.86 attained ten months ago and is at $170 at press time. However, there is optimism in the AAVE community from investors, as they predict it to end 2022 at $500 minimum.
Bitcoin remains the most valuable and leading cryptocurrency in the crypto market, and it continues to dominate.
Any downward or upward movement can disrupt the trajectory of the whole market, it is hereby expedient for traders/investors to do their own analysis and research before aping in any coin.
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