Cryptocurrency's popularity has skyrocketed in recent years to the point that the alternative investment class has basically gone mainstream. While Bitcoin was the first and is now the most well-known cryptocurrency, hundreds of other cryptocurrencies have joined the market. Part of the rationale for the asset class's buzz is the extraordinary returns achieved by certain investors.

Bitcoin Price

From March 2011 to March 2021, Bitcoin, for example, was the best-performing asset, as bitcoin price provided investors a remarkable 230% return annually. The Nasdaq-100 ETF, symbol QQQ, was the second best-performing asset class during that time period, with "just" a 20% annualised return. But what does the future has for the wild-growing cryptocurrency market? Here are some of the most popular cryptocurrency forecasts for 2022.

Ethereum Price

Ethereum is not as well-known as Bitcoin, but it deserves to be. Ethereum is currently the second-largest cryptocurrency, and its growth has outpaced Bitcoin's. The Ethereum price growth has outperformed that of BTC by a wide margin this year. If present trends continue, Ethereum might replace Bitcoin as the most valued cryptocurrency by 2022. This might make Ethereum an appealing option for investors wishing to diversify their crypto holdings beyond Bitcoin.

Ripple Price

XRP has enabled cross-blockchain transactions, micropayments, and online monetization across a wide range of sectors. XRP has served as a catalyst for the growth of businesses such as media and gaming, which have prospered as a result of Ripple's channel relationships (XRP). Ripple, which bridges the gap between any fiat or digital money and forms, has proven to be a popular payment method and a solid investment. ILP developers benefit from indefinite scalability and are not tied to a single crypto ledger. ILP and XRP, when combined, enable trade in media and gaming.

Ripple price has gained backing from some of the investment heavyweights, and the number of partnerships and events with crypto firms shows that many believe in the currency. Recent XRP price predictions and price movement may mark a tremendous improvement by the end of the year, surpassing its previous all-time high price of $3.84, unlike other major coins such as Bitcoin and ETH.

Cryptocurrency Markets in 2022  

One of the most serious criticisms levelled towards cryptocurrencies is that it is not recognized as a credible alternative for fiat currencies. If this scenario plays out, several cryptocurrencies may lose their value. However, the reverse has occurred in 2021, and the pattern appears to be continuing into 2022. As more companies continue to accept cryptocurrencies such as Bitcoin as legal cash, the viability and value of cryptos are expected to rise.

El Salvador became the first country that started accepting Bitcoin as a legitimate currency in September 2021. According to Alexander Höptner, CEO of the crypto exchange firm BitMEX, five or more nations might follow suit and embrace crypto as legal money in 2022. If these adoptions are successful, it is conceivable that additional governments may consider embracing cryptocurrency as well.

China has been at the forefront of the campaign for nations to adopt their own central bank-issued digital currency. Many other governments are considering launching their own digital currencies to counteract the dangers posed by current cryptocurrencies. Countries may avoid existing cryptocurrencies' uncontrolled, decentralized nature by administering and controlling their own digital currency.

While broad trends toward cryptocurrency adoption appear to be improving, with thousands of cryptos contending for a spot in the business, it's inevitable that some, if not many, will lose all of their value. Bitcoin, the industry leader, still has a slew of significant investors lining up against it, implying that the value of Bitcoin will eventually reach $0. If the largest and most well-known cryptocurrency collapses, there will most certainly be little support for the thousands of lesser cryptos that aren't nearly as valuable or accepted.

Final Thoughts

Although cryptocurrencies have grown in popularity and value, they are still a long way from being utilised as conventional currencies or payment methods. Even if digital currencies eventually replace or coexist with traditional paper currencies, it is impossible for investors to forecast which cryptocurrencies will survive, let alone which will be the dominant long-term player in the business. Nonetheless, it appears that cryptocurrencies will continue to grow in popularity, exposure, and even worth in 2022. Recently Techtimes highlighted a number of innovative and interesting crypto projects that could do well in the near future. If you wish to join in this developing industry, talk to your financial advisor about whether cryptocurrencies should be part of your investment portfolio.