Cryptocurrency had a challenging month in November.
Bitcoin hit an all-time high according to Time in November but then tumbled by 20%. Ethereum, the crypto behind many NFTs, has entered December in good shape, with the New York Times suggesting that it has shed its reliance on Bitcoin. Traditionally, smaller altcoins have piggy-backed on Bitcoin’s success; when it goes up, they go up. When it flounders, they’ve often struggled, but the market is changing rapidly.
This is partly down to NFTs adding validity to altcoins without the reliance on bitcoin. For a long while, Bitcoin was as synonymous with crypto as Hoover was with vacuum; they were erroneously classed as the same thing. Now, altcoins are moving out of the shadow of the headline act and making a name for themselves, which is great news for the investor. No longer are people reliant on Bitcoin doing well for their crypto wallets; Ethereum is proof that altcoins have a value of their own.
With that in mind, here are three altcoins that you need to watch in the early part of 2022.
Enjin is creating a lot of buzz in the crypto world right now, and rightly so. It’s a metaverse token, and we’ve seen rises in both Sandbox (SAND) and Decentraland (MANA) since October, as much as 500%. Enjin is also on the rise, but only 170% over the same period, and the buzz suggests it could be next to shoot up quickly. In the world of crypto, hype is often unfounded, but with ENJ, there’s an element of security in that it is an interesting long-term metaverse project that allows users to create NFTs. NFTs do appear to be a key future driver of crypto, which bodes well for ENJ.
Sports fans will already know what Chiliz are; they’re the blockchain that backs Socios fan tokens. Fan tokens are a method of investing in the influence of your sports team and are prevalent around soccer teams. Until recently, they’ve been very much restricted to Europe, but Socios are moving into the US market now, which means massive growth opportunities. Sports will always be popular, and with CHZ straddling crypto and sport, it is well-positioned for significant growth. With fan tokens showing no signs of slowing in terms of popularity, there appears to be huge scope for investment in CHZ.
Livepeer is a decentralized video streaming network, a Web3 project that seeks to change how information is shared, stored and monetized. Web3 is an umbrella term for what many see as the next generation of the internet, and in that respect, LPT is on the edge of something new and exciting. People earn LPT tokens by contributing their processing power to reformat videos for different devices. It might not make you rich right now, but if Web3 takes off, LPT could be a very important altcoin indeed.
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