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The last week has seen several cryptocurrencies lose momentum after a stellar run in 2021. For example, in the last seven days, Bitcoin is down over 11%. Comparatively, Ethereum, Solana, and Binance have also lost 13%, 21%, and 14%. respectively in 2022.
However, there are several other digital tokens that have gained momentum this year. Let’s see the three cryptocurrencies that have gained between 20% and 24% year to date.
Chainlink (CRYPTO:LINK) is the 17th-largest cryptocurrency in the world. Its digital token has surged over 25% this year, valuing LINK at a market cap of US$11.94 billion. Chainlink has generated significant investor wealth, rising close to 15,000% in fewer than five years.
Chainlink is a network that enables several blockchains, where smart contracts are executed to connect with each other. Basically, Chainlink can be viewed as an interpreter of languages for blockchain networks.
A key driver for the increase in the price of LINK will be the number of smart contracts its network facilitates. Data from Whale Stats suggests Chainlink accounts for 6% of total smart contracts right now.
What makes Chainlink a top cryptocurrency bet is that it allows real-world data providers to bid on requests from data purchasers. So, data providers will have to stake LINK tokens that ensure accuracy and transparency. Alternatively, once the contract is executed, data buyers will compensate data providers with the LINK token.
The second cryptocurrency on my list is Cosmos (CRYPTO:ATOM) which is valued at a market cap of US$9.84 billion. ATOM has gained over 20% in 2022 and is up 500% in fewer than three years.
Cosmos is an ecosystem of interconnected applications and services that are connected using the Inter-Blockchain Communication protocol. With over US$154 billion in digital assets under management, Cosmos has already onboarded over 262 apps and services on its platform.
Further, the Cosmos Hub is a blockchain that provides important services to the interchain. For novices, the interchain is a new internet that consists of an extended network of interconnected blockchains.
Cosmos aims to build a decentralized exchange, where you can swap digital assets across the interchain, resulting in low transaction fees. An upcoming interchain security feature will allow ATOM to secure multiple chains and earn staking rewards, increasing demand for the token in the process.
The final cryptocurrency on my list is Harmony (CRYPTO:ONE), which is valued at a market cap of US$3.7 billion. The ONE token has gained 20% in 2022 and is up 1,450% since mid-2019. An open and fast blockchain network, Harmony’s mainnet runs Ethereum applications with a transaction finality of two seconds, which also ensures lower fees.
It is a decentralized platform for assets, identity, governance, and collectibles. Further, Harmony’s bridges also enable cross-chain asset transfers with Binance, Ethereum, and other three chains.
The Foolish takeaway
While major cryptocurrencies, including Bitcoin, Ethereum, and Solana, have lost steam in the last month, they remain top bets for long-term investors. However, there are over 13,000 cryptocurrencies in circulation right now, and you need to look at the utility of their networks to see if they can surge higher in 2022 and beyond.
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