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Highlights
- High market cap cryptos are also volatile, but they, comparatively, have more defined and proven utilities
- Prices may fluctuate widely but the ongoing momentum may lead to price appreciation
- New blockchain projects with low market caps sometimes come into the spotlight, but the below three remain popular
As the cryptocurrency world emerges from a dull phase, the buzz is again around which are the best picks to invest in. Investment in cryptocurrencies can be prone to downside risks.
Bitcoin, which hovered near US$68,000 nearly three months ago, is trading under US$45,000 as of now. But the other side of the coin is that the price was nearly US$29,000 on January 1, 2021, and by this measure, BTC value has appreciated. This shines the spotlight on the importance of timing of the investment and withdrawal in crypto assets.
That said, the next question could be which are the best cryptos -- high market cap or small-cap? While there is no certainty with regard to price fluctuations, many analysts consider that large-cap cryptos may have an edge considering they have more defined utilities.
Hereunder are the three top cryptocurrencies by market cap and their price predictions.
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Bitcoin (BTC)
The cryptocurrency world would lose much of its sheen without Bitcoin. As of now, BTC has a share of almost 42 per cent in the total market cap of all cryptos tracked by CoinMarketCap. This is no mean feat when we know that CoinMarketCap tracks more than 17,000 crypto assets.
Also read: Top 5 altcoins to watch in February
Bitcoin’s market cap is nearly US$830 billion as of now. El Salvador’s experiment of BTC as legal tender, India’s move to tax cryptocurrency investments instead of outlawing them, the launch of Bitcoin ETFs and other such events might decide the price trajectory in the days to come. If the crypto market stays bullish, Bitcoin may reach US$55,000 by the end of the first half of 2022.
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Ethereum (Ether)
Ethereum is a popular blockchain network with support for new tokens and NFTs. As of now, it has a share of almost 18 per cent in the total market cap of all cryptos. The market cap is nearly US$380 billion. Ethereum is facing fierce competition in smart contracts from new players like Solana and Fantom. But with wider adoption of DeFi and NFTs, and Ethereum’s shift to a new consensus mechanism, demand for the Ether token may also rise.
By the end of the first half of this year, Ether may touch US$4,000, but for this, it has to maintain the edge over other networks.
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Data provided by CoinMarketCap.com
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Binance Coin (BNB)
Though Tether ranks as the third-largest crypto by market cap, it is a stablecoin, and hence the value is fixed at US$1.
Also read: Top 5 Web 3.0 crypto projects to watch
BNB has a market cap of nearly US$70 billion and ranks just below Tether. Binance Coin is a wide-ranging project with a blockchain network and a cryptocurrency exchange.
BNB is facing competition from other DeFi projects that have bet on decentralized exchanges, which help earn revenues without liquidating the crypto asset. BNB may touch US$600 by the end of June 2022 if the wider crypto world remains bullish.
Also read: What is Audius crypto & AUDIO music token’s price prediction?
BTC, ETH & BNB: Price predictions of top 3 cryptos by market cap
Bottom line
There is little assurance on where prices may hover as cryptos are very volatile. But if the momentum sustains, the above three high market cap cryptos may appreciate in the near future.
