5 Hot Cryptocurrencies That Could Continue To Beat The Market

These cryptocurrencies have performed well in 2021, and it’s a sign of good things to come

Last Updated November 18th 2021

10 Min Read

Key Points

Stacks is drawing lots of investor interest for making Bitcoin programmable
Solana’s low fees have led to an explosion of DeFi and NFTs on the platform
Dogecoin’s adoption is growing, and a big event is coming up in 2022
Shiba Inu tokenomics are getting better
Ethereum’s shift to Eth2.0 is drawing lots of institutional investor interest

In the financial markets, fundamentals ultimately drive asset prices, and cryptocurrencies are no exception. Cryptocurrencies with strong fundamentals have proven to perform well overall, market volatility notwithstanding.

However, this doesn’t mean that you should throw money at any cryptocurrency simply because it has performed well in the past. You still need to consider whether the cryptocurrency you want to invest in has any prospects for the future.

With this in mind, the following five cryptocurrencies all have the ingredients for exponential value growth going into 2022 and beyond. It makes sense to put them in a crypto watch list for 2022.

Stacks (STX)
Solana (SOL)
Dogecoin (DOGE)
Shiba Inu (SHIB)
Ethereum (ETH)

5 Hot Cryptocurrencies That Could Continue To Beat The Market:

Stacks

The crypto market may be in a correction, but overall, Stacks (STX) is one of those holding up better.

Besides its resilience at the moment, Stacks also happens to be a top cryptocurrency performer this year. Year-to-date, STX is up by 748%.

Looking into the future, it’s easy to see why STX is one of the hottest cryptocurrencies that could continue to beat the market.

Stacks is making Bitcoin programmable, a factor that could unlock hundreds of billions of value on the Bitcoin blockchain. That’s because Bitcoin has the edge over the many platform blockchains looking to compete with Ethereum.

Bitcoin is highly decentralized and is also one of the most secure blockchains out there. Stack’s core fundamentals are also likely to make Bitcoin smart contracts attractive to developers.

That’s because Stacks smart contracts are written in Clarity, a programming language that is easy to use, predictable, and less susceptible to bugs. This makes it pretty good for writing sensitive smart contracts that can lead to serious issues in case of bugs in the code.

Stacks also has a host of developer tools designed to make it easier for developers to come up with smart contracts. Some of the tools that Stacks gives to developers include: Hiro that can be used to create JavaScript libraries, API’s for blockchain development, a sandbox for smart contracts experimentation, Clarity focused tools, among others.

However, the biggest factor that makes Stacks hot at the moment is staking. Investors have the opportunity to stake their STX tokens and earn rewards in Bitcoin (BTC). This has made Stacks hugely attractive because it gives investors a chance to earn Bitcoin without buying it in the open market.

Stacks has also ensured that the process of staking is easy to understand and pretty much attractive to everyone. There is a staking page where pretty much anyone can learn how to stake STX and how much they will earn out of it.

There are also multiple exchanges where investors can stake STX, a factor that further makes STX easier, and more attractive for those looking to stake. This is evident in the growing value of STX staked.

With staking, more STX tokens are taken out of circulation. This means buyers will be chasing a decreasing number of tokens, and that’s good for long term value growth.

A combination of the above factors could see STX perform better than it has done this year going into 2022.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Solana

Solana (SOL) has been hot for the better part of 2021. Despite the correction of the past week, Solana is one of the altcoins holding up better.

Solana’s rise has a lot to do with its low fees. The Solana blockchain can process transactions at costs lower than $0.01. This is a big deal and makes Solana a credible threat to Ethereum’s dominance in the market.

To understand the power of Solana, you need to try and buy a Solana-based token, vis-à-vis an Ethereum one. In Solana, if you want to buy tokens worth $100, you are likely to get filled with tokens worth close to $100.

In Ethereum, you may need to add an extra $8 just to buy $100 worth of tokens. Such differences have seen lots of small-cap tokens and NFT speculators move to Solana.

Due to its cost advantage, Solana is likely to reap big from the latest developments in crypto.

One of them is the Metaverse. Recently, Facebook rebranded to Meta and Mark Zuckerberg did a lengthy video explaining the opportunities presented by the Metaverse.

The impact has been a reinvigoration of Metaverse developers in the crypto sphere and increased Metaverse token investors.

Due to the Solana blockchain's scalability and low costs, more developers are likely to find it more attractive for this function. Overall, interest in the Solana blockchain is already on the rise.

For instance, while it is a relatively new project, Solana now has more than 400 projects built on top of it. The numbers are rising sharply by the day too.

Since one needs to first buy SOL to interact with the Solana blockchain, this rising demand could help drive up the value of SOL in the future.

It is also noteworthy that Solana is a deflationary cryptocurrency. All SOL generated in transactions is burned. This guarantees that as long as there is demand for SOL, the value will go up.

This is evident in SOL’s price action all through 2021, when there has been an upsurge in its demand.

With NFTs and DeFi set to get even bigger in 2022, SOL has the potential to explode by an even more considerable margin in 2022. Chances of beating the market are quite high.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Dogecoin

Dogecoin (DOGE) is without a doubt one of the hottest cryptocurrencies of 2021. While it has had a largely sluggish performance since May, Dogecoin is still up by 8000% in the last 12 months.

Dogecoin’s performance since 2020 has a lot to do with Elon Musk and his tweets. In 2020, Elon Musk would tweet pretty much anything about Dogecoin and pump the price.

This hype has since gone down, but many positive improvements have come to Dogecoin since that time.

For instance, all through 2021, the rate of Dogecoin adoption has shot up exponentially. It is now used for everyday transactions by many well-known corporations globally. The Dogecoin developer team is also active again, for the first time in years.

Aside from these developments, Dogecoin has big news coming up in early 2022. In collaboration with Geometric Energy Corporation, SpaceX will be sending a rocket to the moon in Q1 of 2022.

This is a big deal and is likely to reignite the hype that Dogecoin had earlier in the year. That’s because it is an event that is backed by Elon Musk, one of the most influential figures in the world today.

If Elon Musk tweets about this upcoming event, then Dogecoin could easily beat the market by a huge margin.

The impact of the upcoming Doge-1 space mission could easily be felt way after the event is long gone. For context, Dogecoin has seen lots of improvements following Elon Musk’s tweets of 2020.

Now with the demonstration that Dogecoin can be applied in space exploration, adoption could rise. New use cases could come up too.

There is also the potential for Dogecoin to be adopted even more by businesses going forward. Such businesses would adopt it for the convenience it offers, catch the wave, and drive sales.

The ability for companies to drive sales by adopting Dogecoin is evident in the Dallas Mavericks case. According to the Mavericks owner, Mark Cuban, merchandise sales have gone up since they adopted DOGE.

Dogecoin’s weakness, inflationary tokenomics, is also turning to be its advantage. Since it’s inflationary, there is an incentive for people to spend it. This makes it more practical as a currency than, say Bitcoin or Ethereum. In essence, inflationary tokenomics could see DOGE gain in value long-term as more people use it.

With all these factors in its favour, more so, the Doge-1 mission, Doge beating the market is possible.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Shiba Inu

Shiba Inu (SHIB) is one of the big cryptocurrency wonders of 2020/21. It only launched in August 2020, and since then, it has been up by over 28,000,000%. Essentially anyone who invested in this hot cryptocurrency in 2020 is a millionaire today.

The best part is that the hype and momentum around SHIB does not seem to be slowing down. In October, it outperformed the market by a huge margin with an 1100% rally.

Even in the current cryptocurrency market correction, SHIB is holding value pretty well. For a meme coin, it has lost much less than what would be considered ‘better quality’ cryptos.

In the future, there is every indication that SHIB is still hot and could outperform the market by a huge margin. Firstly, the hype around it is still high. On social media and search engines, SHIB is huge.

In essence, if the market sustains the bullish momentum of the last couple of weeks, SHIB could easily do another couple of percentages in gains.

Then there is SHIB’s improving fundamentals. Since it launched, Shiba Inu has only gotten better as an investment.

One of the areas where Shiba Inu has improved immensely is in its token supply. When it launched, Shiba Inu had a total of 1 quadrillion tokens in circulation.

Earlier this year, Vitalik Buterin donated over $1 billion of the SHIB. He then burned the rest, taking out close to 50% of the total supply. SHIB is also deflationary by design. All fees generated during transactions are burned. The result has been a drop in the total supply of SHIB from a quadrillion to about 350 trillion tokens.

As more people transact in SHIB, the token supply will shrink even further. Going by the laws of demand and supply, decreasing supply could boost the value of SHIB in 2022 and for many years to come.

Its demand is also on the rise as more organizations adopt it for payments. The latest of them has been a French restaurant where people can now pay in SHIB.

SHIB has also benefited immensely from the launch of Shibaswap back in July. Shibaswap is a DEX for exchanging and staking SHIB. Through Shibaswap, a lot more investors are starting to stake SHIB. It’s a factor that could help in stabilizing the price long-term and drawing in more investors.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

Ethereum (ETH) has, without a doubt, been a hot cryptocurrency investment all through 2021. In April 2020, one ETH was trading at $200. Today, it is trading at $4200 and recently made an all-time high of $4800.

Ethereum’s rising price has a lot to do with the shift to Ethereum 2.0. The transition started in December 2020, and so far a lot of the work has been done. One of the key upgrades that have transformed Ethereum’s fortunes is the London fork.

The London fork was completed on August 5th, 2021, and among its improvements was making Ethereum deflationary. Thanks to this fork, some of the gas generated in Ethereum transactions is now burned instead of being distributed to miners.

This means as the demand for the Ethereum blockchain goes up, the supply drops. This has set up the price of ETH to keep going up over time. It is not a coincidence that Ethereum has been going up steadily since this fork was completed.

Ethereum’s improving metrics, coupled with its status as the most prominent platform blockchain, has seen it draw lots of interest from institutional investors.

With the upgrade to Ethereum 2.0 set to be completed in 2022, Ethereum will remain hot, not just in 2022 but for many years. It has a perfect confluence of improved usability, a strong brand name, and growing interest from big-money players.