Institutional Investors Are Pouring Money: These 5 Altcoins Are Shining!


For the cryptocurrency market, 2022 has been quite challenging. However, some altcoin projects have had a positive impact on the entire industry. Crypto analyst Kyle White assesses 5 altcoin projects in 2022 that will make a real difference.

Fundamentals of leading altcoin Ethereum shine in 2022

Ether’s price hit a year high at $3,835 on January 2. The leading altcoin struggled to rebalance amid a bear market and other macro factors. The Ethereum network is the best project in 2022, not because of the price action of Ether, but because of the fundamentals and completion of the long-awaited mainnet upgrade. As you follow, Ethereum Merge was completed on September 15, 2022. While many feared that Proof-of-Stake (PoS) and Merge would cause problems, the transition was seamless.

The main advantage of PoS is that it is much more energy efficient than Proof-of-Work (PoW) as it does not require expensive and energy-intensive hardware to verify transactions. This reduces operating costs for the end user. It also makes it a more sustainable and scalable solution for Ethereum’s long-term growth. Merge has also reduced the energy consumption of the Ethereum network by over 99.9%.

Some analysts are bullish on Ether post-Merge as the emissions chart has become deflationary. The daily active users for the network increased. Despite this, emissions remained inflationary. However, Ether price is still below its yearly highs. In 2023, investors anticipate that increased transactions on the network will create higher demand for Ether. So, he is hopeful that this will translate into an increase in altcoin price.

Lido (LDO) brings Ethereum network staking to the masses

Lido provides a simple interface for staking without having to reach the high threshold the network needs to stake. Thus, it makes it easy for users to join Ethereum PoS as validators. Since its launch, Lido has raised $158.8 million from the staked Ether protocol. At its peak, Lido saw 823 daily active users on September 17.

Cumulative Lido fees and daily active users / Source: TokenTerminal

With the Ethereum Shanghai update scheduled for March 2023, Lido will have a busy first quarter. Also, all Ether staked on the platform will have an option to withdraw. Aztec Connect, the creator of the Lido protocol, also recently embarked on a $100 million fundraising round to create an encrypted blockchain.

These altcoin partnerships show long-term durability

Mass adoption requires traditional companies and brands to get involved in crypto. Polygon (MATIC) focuses heavily on partnerships. Along these lines, some of the relationships developed in 2022 include Warner Music, JP Morgan, Instagram and Warren Buffett’s Neobank. These partners are using the Polygon network in a variety of ways, including by integrating the Polygon network into their infrastructure and using Polygon to deliver distributed ledger technology (DLT) for their products and services.

Notable companies have also chosen to launch NFTs on Polygon. Former President Donald Trump has released NFT collections on Reddit, DJ Deadmau5, and Nike on Polygon. Some traders are expecting a 200% increase from MATIC due to on-chain metrics showing traction and stacking of future partnerships. Despite all the growth of Polygon, the Ethereum network still charges more.

Daily fees comparing Polygon (Orange) vs Ethereum (Green) / Source: TokenTerminal

Polygon’s focus on the core principles of Web3, combined with their partnership, has earned them a place as the top altcoin project in 2022.

MakerDAO’s DAI proves to be resistant

In a year when algorithmic stablecoins de-peg and disappear, Dai DAI has shown resilience. Unlike centralized stablecoins, DAI is a decentralized stablecoin that provides transparency, resistance to censorship, and the ability to operate outside of traditional financial systems. DAI is not new to the crypto space. However, the decision to increase investment in low-risk assets such as treasury bonds earns them a place as the top altcoin. According to an analysis by Sebastien Derivaux, a crypto scholar, this decision accounted for 75% (600 million) of all DAI revenues.

These altcoin upgrades attract institutional investors

Cosmos (ATOM) is focused on solving the interoperability and communication challenges that exist between different Blockchains in 2022. On January 1, Cosmos had 74 active developers. However, this figure has more than doubled, reaching 154 on 30 November. In a year plagued by cross-chain losses, Cosmos’ inter-blockchain communication protocol (IBC) has apparently weathered the storm so far. The success caught the attention of Delphi Digital’s research arm and fund managers at VanEck.

Cosmos fees and developer activity / Source: TokenTerminal

Overall, Cosmos has the potential to be an important infrastructure layer for the crypto ecosystem. Because it helps facilitate the exchange of value and information between different Blockchain networks. It also provides a more collaborative future. While 2022 is a year most crypto investors will want to forget, positive factors have emerged in mass adoption. Altcoin projects focused on building will continue to advance the future of crypto in 2023 and beyond.


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