Are the days of the Doges over?
- Dogecoin put coins on the map, but useful cryptos are better bets in 2022.
- Algorand, Polygon, Cosmos, The Graph, Helium, and Enjin are all well positioned to overtake Dogecoin’s market cap.
Dogecoin (DOGE) was the sixth most searched news term in the United States this year, according to Google. The only other crypto to make the top 10 was Ethereum, which took 10th place.
The popularity of Dogecoin isn’t all that surprising when you think about the wealth history behind the coin. What started out as a joke designed to poke fun at the way people bought cryptos they didn’t understand has grown into one of the best tokens by market cap. And, as popular culture extends its tentacles to finance, Dogecoin personifies (or dogifies) the new trend.
There are various reasons why people buy same coins. Some want to participate in the joke or be part of a community. Others hope to get rich or see it as a way to access the seemingly impenetrable world of crypto. As Mark Cuban said in April, buying Doge is better than a lottery ticket and can be a great way to learn about the market.
But, the star of Dogecoin may be on the decline. Dogecoin is starting to find use as a form of payment, but its passage to the general public does not fit well with its anti-establishment image. It is down more than 75% from May’s all-time high. And even self-proclaimed Dogefather Elon Musk’s tweets failed to revive the famous Japanese dog.
Here are six cryptos likely to overtake DOGE in terms of market cap next year.
1. Algorand (ALGO)
Algorand is one of several promising smart contract cryptocurrencies promoted as potential alternatives to Ethereum (ETH). Ethereum, the original programmable blockchain, struggles with high fees and network congestion. As it runs on an upgrade to Eth2, other cryptos like Solana (SOL) have entered the top 10 coins by market cap. It is not yet known which pieces will come out on top.
One of the reasons Alogrand is interesting is that it can be staked across multiple platforms, including Coinbase which only allows staking on a handful of coins. Staking is where you attach your tokens to help with overall network security.
2. Polygon (MATIC)
Polygon is an aggregator of Layer 2 Ethereum solutions. Where Layer 1 cryptos like Algorand have built their own more scalable blockchain ecosystems from the ground up, Layer 2s overlap with existing networks to improve performance. Polygon brings together different ways to make Ethereum faster and cheaper, giving developers the flexibility to choose the right solution for their project.
3. Cosmos (ATOM)
Cosmos is called “the internet of blockchains”. It is a smart contract platform that focuses on interoperability. Interoperability is one of the next big challenges for cryptocurrencies – it’s what will help them talk to each other. There are some interesting cryptos in this space, and Cosmos is one to watch. Currently at No. 30 on the crypto charts, its market cap is around $ 6 billion, compared to Dogecoin’s 12th market cap of nearly $ 23 billion.
4. The graph (GRT)
Smart contracts are tiny pieces of self-executing code that run on the blockchain. They are programmed to trigger when certain circumstances occur. But in order for them to run automatically, they need the right information. This is where The Graph comes in. Essentially, it’s a data indexing tool that helps decentralized apps – and the smart contracts that power them – access the data they need. It performed relatively well in 2020 but sits below Dogecoin in terms of market cap and still has room to grow.
5. Helium (HNT)
Helium brings a decentralized approach to wireless infrastructure. A network of individual users provides wireless access to Internet of Things devices. The Internet of Things is all devices – from modern refrigerators to smart pet collars – that connect to the Internet. Users can earn HNT tokens and contribute to the network by leveraging the access points that make up the network.
6. Enjin (ENJ)
Gaming and metaverse tokens are all the rage right now, as is everything about non-fungible tokens (NFTs). NFTs are certificates attached to various types of digital collectibles, such as art, music, and in-game items.
But it can be difficult to know which NFT game, virtual world, or piece of art might capture people’s imaginations, especially if you’re not an active gamer or collector. Rather than trying to hunt down the next big thing, it’s worth examining the infrastructure behind these projects. For example, Enjin is a games-focused NFT platform that simplifies the process of creating and managing NFTs.
The world of cryptocurrency is unpredictable
Each of the above tokens has a strong management team, is available from top cryptocurrency exchanges, and addresses an issue that needs to be addressed. But they still come with risks, such as increased regulation, potential security holes, or replacement with newer technology.
Make sure you do your own research to understand each piece. Take a look at how it stacks up against its competition, what its long-term prospects are, and if it has an active community of developers.
If you clicked on this article hoping to find the next great meme corner, I hope you weren’t too disappointed. We focused on the parts that have potential and a solid use case, which excludes most of the meme parts. This doesn’t mean that one or two of the hundreds of different meme coins on the market won’t jump in 2022. It’s just that they are even more unpredictable than other cryptos and only a few have a chance to succeed. .
Ultimately, we don’t know what will happen to the cryptocurrency market next year. But tokens that serve a purpose are much more likely to perform well in the long run than those that don’t.
Emma Newbery owns Algorand, Ethereum, Solana, Polygon, Cosmos, The Graph, Helium and Enjin. The Motley Fool owns shares and recommends Bitcoin.
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