Invest in the top cryptocurrencies this year.
The best cryptocurrencies to invest your dollars or other fiat currencies in for the upcoming year are listed below.
Ethereum Virtual Machine (EVM) Chains
While we don’t have the space in this article to examine the minutiae of Ethereum Virtual Machines (it’s best to refer to Ethereum’s own description of EVMs), which can be quite arcane even for experts, a few words by way of an explanation are in order. The keyword here is interoperability.
Ethereum was the first blockchain with smart contracts, but other chains have evolved to offer smart contracts using EVM as their standard smart contract engine, meaning that layer-1 blockchains are interoperable. Rather than developing completely new ways of creating smart contracts, which are chain-specific and therefore limited, EVM-compatible blockchains ensure that smart contracts created on, say, Polygon are recognized by Ethereum nodes, allowing devs to copy their dApps or tokens across different chains.
A token on an EVM-compatible chain, then, becomes far more interesting as an investment option given its increased compatibility and interoperability. Below are some of the best EVM-compatible cryptocurrencies (
Binance Coin (BNB)
With $76 billion in 24h trading volume, 600+ cryptocurrencies from which to choose, 90 million registered users, and some of the lowest transaction fees, Binance is the largest and most popular cryptocurrency exchange in the world. Originally an ERC-20 token on the Ethereum blockchain, Binance’s BNB is issued on Binance’s own blockchain and is used for transaction fees payments (on the Binance Chain), entertainment and online services, financial services, and even travel bookings.
If you’re a fan of footballer, Cristiano Ronaldo, and TikTok celeb, Khaby Lame, then you might be interested in what Binance has in store with its BNB Coin and NFTs. With Lame’s knack for making complex things easy to understand, Binance is betting on the social media influencer’s potential to draw newbies into crypto (and Binance).
If all goes to plan, Binance will be able to leverage its partnerships, further solidifying its place at the forefront of crypto-related developments.
Polygon (MATIC)
For those interested in scaling Ethereum/Web3 apps, Polygon offers some impressive numbers. According to its website, Polygon boasts 1.3 billion recorded transactions, 130 million wallets, and just under 3 million active monthly users. Its native token, MATIC, is an ERC-20 token and is used within the Polygon ecosystem to settle payments as well as for governance.
It’s also an EVM-compatible sidechain with a long-term vision of becoming Ethereum’s “internet of blockchains” as well as a Layer 2 aggregator, which will allow it to leverage Ethereum’s security while providing faster speeds and lower costs for developers to use independent yet interoperable blockchains.
Despite a steep drop in price since autumn 2021 and a substantial increase in tokens in circulation, MATIC’s value remains high, thanks in part to the Ethereum Merge, and investors are bullish on its long-term prospects. And with 19,000 dApps running on the network and Ethereum scaling solutions, MATIC is one to keep on your watchlist.
Fantom (FTM)
Fantom is a fast, high-throughput open-source smart contract platform for digital assets and dApps (or decentralized applications). According to its website, there are 200+ dApps that have already been deployed on Fantom ranging from DEXes, cross-chain bridges, lending and borrowing, and yield optimizers to NFT platforms, tools, and wallets.
Fantom uses a directed acyclic graph or DAG, which looks more like a graph than a chain and is seen by many as a possible substitute for blockchains due to greater efficiency when processing online transactions or when handling data storage. Due to a special proof-of-stake consensus mechanism called Lachesis, Fantom can currently handle approximately 4,500 transactions per second (TPS), while result of their experiment suggest up to 10,000 TPS (!).
Avalanche (AVAX)
If you’re interested in the fastest smart contracts platform in the blockchain industry, then look
no further than Avalanche. In addition to Cardano and Solana, Avalanche is considered one of Ethereum’s main rivals, although the former two have lost quite a bit of ground in this respect.
Touting 6,500 transactions per second, Avalanche uses three separate blockchains, its exchange chain (X-Chain), contract chain (C-Chain), and platform chain (P-Chain), with each one having its own specific role to play in the Avalanche ecosystem. And as you might have guessed, AVAX attempts to solve the blockchain trilemma (fast, secure, scalable). Users might also be interested in the “Core” non-custodial browser extension, which enables users to interact with Web3 powered by Avalanche.
Fast, low-cost, eco-friendly, and with NFTs gaining traction on its marketplace Joepegs, AVAX has significant potential as a smart contracts platform for decentralized applications, earning it a spot on our list of best cryptocurrencies in which to invest.
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