Since the beginning of the year, most coins have been in the red area, with some recording a more than 30% price drop. The cryptocurrency market has reacted to various macroeconomic situations, hence, the price drop.
Analysts have not lost hope despite 2022 starting badly as they believe the market will go higher for BTC and ETH. They have been the leading cryptos for many years now. Another crypto that market experts are expecting to go high is stablecoins. What will take these three coins to greater heights are their basics.
Experts Pick Their Best Coins For The Year
From Bloomberg Intelligence, several analysts have evaluated the cryptocurrency market and, from the results, picked the coins that will keep dominating this year’s market. This information was made available in the company’s crypto report for this month. The team led by Mike McGlone believes these coins’ fundamentals will give them the edge over others.
These coins are stablecoins, BTC, and ETH. They referred to stablecoin as “crypto dollars.” BTC, ETH, and stablecoins account for over 70% of the market valuation for cryptocurrencies. BI stated that this value would go higher in 2022.
BTC, ETH, and Crypto dollars
One must be wondering what these fundamentals are. Well, the basics differ for each coin. For Bitcoin, its fundamental supply of over 21 million is limited. As stated from the outlook, the reduction in supply and high demand for Bitcoin will make it digital collateral worldwide. Also, the outlook stated that the number one coin is in an excellent position to go higher above other coins and remain at the top no matter the new cryptos creeping out everywhere.
From the results, an expansive community is the main fundamental for ETH. This extensive ecosystem helps to facilitate the large crypto dollar and NFT market. Increased usage of crypto dollars mined on ETH blockchain is making the price of Ethereum stable.
Furthermore, stablecoins will keep growing and dominating due to its easy use for dollar payments.
Lastly, the report pointed out the growth rate of the first six stablecoins from last year till February 2022, which has increased by five times. The leading stablecoins have a market valuation of about $170 billion.
Bloomberg Intelligence does not have high hopes when considering the other coins in the market. The analysts referred to these coins over 17,000 as having no primary use, and any prediction for them will be mere speculations.
Just last week, Bitcoin crossed over into the $40,000 mark after some months. Ethereum also entered $3,000. As of the time of this report, BTC is trading at $41,350.
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