When Bitcoin (CRYPTO:BTC) was created, it undoubtedly started a revolution. Nevertheless, the creation of Ethereum (CRYPTO:ETH) was arguably a good greater improvement. It was the beginning of blockchain networks that may run sensible contracts. The implications for the long-term potential of blockchain know-how are big.
That is basically why Ethereum has a lot potential and why it’s already the second-most worthwhile cryptocurrency. And in recent times it has rewarded traders with some important returns. Tonnes of improvement have been happening on the most well-liked blockchains, corresponding to Ethereum.
Over the past two years, Bitcoin earned traders development of 307% in 2020 and 62% in 2021. The worth of ETH grew by 496% and 386% in every of these two years. In order that’s not simply unimaginable development, it’s additionally clearly outperforming Bitcoin. And now, Ethereum accounts for nearly 20% of the whole worth of all cryptocurrencies.
The cryptocurrency nonetheless presents tonnes of development potential, particularly over the long term. Nevertheless, many of the huge development is behind it. Moreover, in the mean time, it has a number of points that want addressing.
What are the problems Ethereum faces right now?
At present, there are a handful of serious points that Ethereum faces, which is limiting its skill to scale up. That is to be anticipated, although, given Ethereum was the primary blockchain of its form.
Given its reputation, a cotinuing downside is that the community will get congested. Consequently, the time it takes for transactions to be despatched may be fairly important. The fee may be important as properly. These points, in addition to others, are being labored on proper now. The ought to be resolved with the launch of Ethereum 2.0, anticipated later this yr.
Nevertheless, whereas options are coming, present traders and customers of the crypto house, particularly in DeFi, are on the lookout for alternate options.
So, whereas Ethereum has potential, it additionally has points. There are different cryptocurrencies which are additionally less expensive and have extra room to develop considerably.
Probably the greatest cryptocurrencies to purchase in 2022
Ethereum is already the most well-liked possibility. And plenty of within the house have the arrogance that Ethereum 2.0 can clear up quite a lot of points. This implies selecting to put money into a blockchain that’s suitable with Ethereum is a superb long-term possibility.
Many customers and, extra importantly, builders don’t need to migrate to a completely new chain. This implies tonnes of blockchains in Ethereum’s ecosystem supply big potential. On the finish of the day, the place the customers and builders go will play the largest function through which cryptocurrencies have essentially the most demand and achieve essentially the most in worth.
That’s why a cryptocurrency corresponding to Fantom (CRYPTO:FTM) is likely one of the finest to purchase in 2022. It’s suitable with Ethereum, , after all, nevertheless it’s additionally way more environment friendly in the mean time. Transactions typically price simply cents to make.
One of many explanation why transactions are so low cost is that its underlying know-how was initially constructed to supply higher scaling than Ethereum. And since it’s suitable with Ethereum, tonnes of customers and builders have simply migrated to Fantom, giving it a big increase to reputation.
Whereas many within the cryptocurrency industry are optimistic about Ethereum’s improve this yr, no one needs to attend round for it to be launched. And proper now, utilizing Ethereum’s community may be pricey, troublesome, and irritating. Due to this fact, options like Fantom proceed to be a no brainer for customers within the house.
On the time of writing, Fantom is now the twenty seventh Most worthy cryptocurrency with a market cap simply shy of US$7 billion. As well as, its market cap to whole worth locked ratio sits at simply 0.95 occasions.
Due to this fact, not solely does Fantom supply a tonne of development potential, nevertheless it’s additionally extraordinarily low cost, making it among the best cryptocurrencies to purchase in 2022.