5 cryptos to explore in January 2022

Highlights

• Though a lot of investors are chasing low-price high-return tokens, BTC and Ether cannot be overlooked
• Metaverse continues to be one of the leading sub-categories in cryptocurrencies
• Ether’s rivals like Fantom may repeat Solana’s 2021 feat if users back these new platforms

The year 2021 is over, and we’ve now entered 2022 that may end up being another cryptocurrency-led investment phase. Things changed drastically from the start of 2021 to when we reached the year’s end. Crypto assets became a big investment option, and many investors who had invested in the early months of 2021 saw their holdings appreciate in value. A large number of cryptocurrencies gained multi-fold last year, and this shines the spotlight on why it may be a preferred choice of many to pick some assets in the first month of 2022.

Here are five cryptocurrencies to explore in January 2022.

Also read: Crypto day trading: How to make profits in cryptos?

1. Bitcoin (BTC)

There is a little concern among watchers about the dipping dominance of Bitcoin or BTC in the total market cap of all cryptocurrencies. As of now, Bitcoin’s dominance is nearly 39.5 per cent.

Once the most popular crypto, Bitcoin also lost this tag in 2021, the year when Shiba Inu garnered more clicks than BTC. But Bitcoin is hard to ignore, let alone reject.

Should you invest in Bitcoin? Though it is a choice of the investor, which should be based on risk-appetite considering volatility in prices, the largest market cap cryptocurrency has enough steam left.

First, the President of El Salvador, the country that legalized Bitcoin last year, has prophesied that two more countries can do so in 2022. In a tweet, he has also forecasted Bitcoin price breaching US$100,000 in 2022. Second, Bitcoin is the only crypto as of now that is into everything -- from S&P indices to big US banks crypto offerings to portfolios of big companies like MicroStrategy and Tesla.

As of now, Bitcoin is trading at nearly US$46,000, which is way below its peak US$68,000 price. This could mean that investors may want to park money in Bitcoin considering it is ‘available at a discount’.

Also read: As we enter 2022, know how Bitcoin compares with the US dollar

2. Ethereum (Ether)

Ether, just like Bitcoin, appears in this list for its fundamentals, not sentiments of some Reddit users.

Ether, the blockchain network Ethereum’s native token, is no less in stature as compared to Bitcoin. If for the world at large Bitcoin is the most powerful cryptocurrency, for decentralized app developers and blockchain community, Ethereum is probably the most powerful.

Image description: Market dominance of Bitcoin and Ether

Data provided by CoinMarketCap.com

In 2021, two sub-categories within cryptos became the most discussed – non-fungible tokens (NFTs), and blockchain gaming. Neither of the two could have become so big had it not been for Ethereum’s blockchain services. Most NFTs are registered on Ethereum and are termed ‘ERC-721’ tokens. Games that promise decentralization and more power in the hands of users also use Ethereum. AXS coin of the famous Axie Infinity game is an ERC-20 token.

Ether is used within Ethereum for multiple purposes. As of now, it is trading at nearly US$3,700. Ether is also an ‘available at a discount’ token considering it touched US$4,800 in November 2021.

Also read: The top crypto gainers of 2021, and a couple of underperformers

3. Algorand (ALGO)

Algorand is an Ethereum competitor in the blockchain services sector. Solana, the other such competitor had a great year in 2021.

Algorand allows developers to build decentralized apps using its peer-to-peer architecture services. For example, the decentralized finance (DeFi) app Tinyman uses its proof-of-stake network.

ALGO token was a high as US$2.3 apiece in September 2021. As of now, it is priced nearly US$1.7. Algorand price prediction is optimistic, but when the network is adopted by more developers and a wider-bull run strikes the overall crypto market.

One of the top 20 cryptos by market cap, ALGO’s low price per token is likely to draw the attention of amateur retail investors.

Read: How to spot a ‘Crypto Ninja’?

4. Fantom (FTM)

Fantom is also a decentralized network that supports blockchain-based apps, but what makes it different is a unique consensus mechanism. Unlike the usual proof-of-work or proof-of-stake, Fantom network uses a bespoke algorithm, which it projects as its unique selling proposition.

FTM is the network’s native crypto, which has the same utility inside Fantom as Ether has in Ethereum.

FTM is a close watch for multiple reasons. First, FTM is a low-priced cryptocurrency with a high market cap. Trading at nearly US$2.8 apiece, FTM market cap is over US$7 billion. Second, FTM gains in 2021 dwarfed the gains of biggies like Bitcoin. Third, the trading volume of FTM over the past one day reflects investors’ interest in the token.

These features make Fantom crypto an interesting watch in the near-term.

Also read: Cryptocurrencies vs. stock market: What can be the best pick for 2022?

5. The Sandbox (SAND)

Cryptos for January 2022 list cannot be complete without a metaverse token.

Over the last couple of months of 2021, blockchain gaming cryptos, which are being considered very close to metaverse’s fictional world powered by virtual reality tech, surged in value. The Sandbox faces competition from Decentraland (MANA). The market cap of SAND is a little below MANA as of now.

Lately, Paris Hilton launched her own little metaverse using Roblox game’s services. From Adidas and Nike to investor SoftBank, many big names have entered the metaverse world in some capacity. In this light, The Sandbox, which received funding from SoftBank in 2021, makes an interesting watch in the near-term.

Also read: Why are people buying virtual real estate? Should you too?

From ‘Bitcoin vs. Ether’, a few analysts have for the time-being shifted to Sandbox vs. Decentraland in the wake of the industry’s interest in the space. That said, The Sandbox price per token is in single digit, which makes it another so-called low-priced crypto with a billion-dollar market cap.

What Next?

January could be the month for some investors to place money in their favorite crypto assets. Investors have their own strategy, and the above five cryptos may be interesting in the near-to medium term.

The list includes a few high market cap cryptos, which may not rise steeply in the near-term, but for a longer-term perspective these cannot be ignored. Two in the list, The Sandbox and Algorand, are trading at low price per token as of now. The former is a metaverse crypto project, and the latter is Ethereum’s rival in the decentralized app development space.