Bitcoin attempted to reach $44,000 a few hours ago but was halted. The majority of cryptocurrencies are marginally in the green, with Cardano being the largest gainer among the larger-cap ones, up 8%.
According to Real Vision CEO Raoul Pal, five altcoins will perform well this year, with layer-1 altcoins and interoperable blockchains shining brightly.
Pal believes both Bitcoin (BTC) and Ethereum (ETH) serve as “base investments,” each for their own reasons, in a new interview with CoinMarketCap’s Jessica Walker.
He examines it in terms of network effects and the types of networks that are forming within the cryptosphere. In terms of the amount of developers and individuals investing in it, Ethereum is the largest and most stable network. As a result, it becomes one of your foundational investments. Bitcoin, being the pioneer in the field, is a good place to start.
Five additional altcoins worth watching, according to the Real Vision CEO, are Ethereum (ETH) competitors Terra (LUNA), Avalanche (AVAX), Solana (SOL), and Polygon (MATIC), as well as cross-chain network Quant (QNT).
“We’re seeing these layer-1s, stuff like Terra, Avalanche and probably Solana. I think maybe 2022 is going to be the year of interoperability, so we’re looking at Polygon, Quant – a few other things that might give us those opportunities.”
NFT on rise!
Pal also predicts a positive year for decentralised finance (DeFi), non-fungible tokens (NFTs), and social tokens in 2022.
Large investors, such as banks and sovereign wealth funds, such as those from Dubai, Abu Dhabi, Kuwait, and Saudi Arabia, are expected to adopt the technology more quickly, according to the former Goldman Sachs executive.
He believes the banks will have them, but in their trading books rather than on their balance sheets. More pension funds and institutional investors are expected, and I believe this year will be the year of the sovereign wealth fund.