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3 Unstoppable Cryptocurrencies to Buy in 2022

By Keith Speights – Dec 31, 2021 at 12:55AM

Key Points

  • Phase 2 of a major upgrade should provide a boost to Ethereum in 2022.
  • Solana's fast transaction speeds and low costs position it well for the future.
  • Avalanche's ecosystem should enjoy strong growth with a ringing endorsement from Deloitte.

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They're all gaining momentum as the new year begins.

You can't depend on history repeating itself. The raging bull market for cryptocurrencies we saw in 2021 won't necessarily continue into the new year. But it might.

Regardless of how strong the overall crypto market is, your chances of success are better if you're highly selective about the digital coins in which you invest. With that in mind, here are three unstoppable cryptocurrencies to buy in 2022.

Two smiling people looking at a touchscreen tablet.

Image source: Getty Images.

1. Ethereum

Ethereum (ETH -0.06%) already ranks as the second-largest cryptocurrency in the world, based on market cap. It also boasts the most widely used blockchain. More than 40 of the top 100 cryptocurrencies are built on Ethereum's platform.

However, Ethereum has its downsides. Its blockchain isn't very fast and transaction costs are steep. As a result, some developers have opted to switch to other blockchains. Despite these negatives, though, Ethereum's native ETH token soared more than 450% in 2021.

The new year could be even brighter for Ethereum. Phase 2 of the Ethereum 2.0 upgrade is scheduled to be completed in 2022. This will extend the proof-of-stake protocol to the entire Ethereum network. Once the final phase of the upgrade rolls out in 2023, Ethereum's blockchain will be much faster, more scalable, less energy-intensive, and have much lower transaction costs.

This promise could entice new developers to Ethereum next year. Billionaire Mark Cuban thinks that's exactly what will happen. He predicts Ethereum could be a monster winner in 2022 as game-changing new apps are built on the platform.

2. Solana

Solana (SOL 0.49%) delivered a massive return of close to 12,650% in 2021. And that gain is after a general pullback in cryptocurrencies over the last two months of the year.

There are two main reasons why Solana stands as the fifth-largest cryptocurrency based on market cap. Its blockchain is fast, with the capability to process up to 65,000 transactions per second. It also has super-low transaction costs of around $0.00025.

These advantages have attracted lots of new developers. Solana claims to have "the fastest-growing ecosystem in crypto" with more than 400 projects. These projects include non-fungible token (NFT) marketplaces and a wide range of decentralized finance (DeFi) apps.

In many ways, Solana is already what Ethereum supporters hope it becomes with the planned upgrade. The key difference is that Solana uses a proof-of-history protocol that increases its scalability. Solana seems likely to remain a top choice for developers who don't want to wait for Ethereum to catch up.

3. Avalanche

Avalanche (AVAX 0.71%) is the smallest of these three unstoppable cryptocurrencies, based on market cap. However, it's still big enough to hold the No. 11 spot on CoinMarketCap's ranking of the top cryptocurrencies after soaring close to 3,350% in 2021.

Like Solana, Avalanche is a popular alternative to Ethereum. However, in some ways, Avalanche is beating Solana. For example, it's generating significantly more decentralized application (dApp) revenue than Solana is

Avalanche is also faster than Solana in one key area. Its time to irreversibly add a transaction to the blockchain is less than two seconds -- the fastest of any blockchain that supports smart contracts.

The Avalanche ecosystem currently includes nearly 160 projects. Large accounting and consulting firm Deloitte announced in November that it selected the Avalanche blockchain to develop a disaster-recovery platform. This endorsement by Deloitte could pave the way for even more developers to select Avalanche. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns and recommends Ethereum. The Motley Fool has a disclosure policy.

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