-
Bitcoin and Ethereum are “basic investments,” with BTC the OG of crypto, says Real Vision CEO.
-
Terra and Solana are currently the top 10 cryptocurrencies by market cap, while Avalanche and Polygon make up the top 15.
Terra (LUNA) is currently the 9th largest cryptocurrency by market cap at $29 billion, thanks to a monstrous price rise over the past year.
While the decentralized financial payments blockchain has seen its native currency struggle for the past two weeks, it has grown 23% since mid-December. But that’s not all; The price of LUNA has increased by 10,579% since January 2020.
This coin, along with Avalanche (AVAX), Solana (SOL) and Polygon (MATIC), should see even more gains in 2022, according to Real Vision CEO Raoul Pal.
The investment strategist said in an interview published Friday.
He said he has personally added to his Ethereum position and is looking at “some of the downed tokens” in decentralized finance (DeFi) as well as layer 1 altcoins.
The investor was responding to Jessica Walker’s question about what he thinks an experienced trader would look at in the crypto market in 2022 proper. And Pal noted that Bitcoin (BTC) and Ethereum (ETH) will likely remain at the top of the list for many traders, before explaining why.
According to him, ETH and BTC are “basic investments”. He said that Bitcoin is the “OG” of crypto, while Ethereum is the most robust network in the crypto industry. It has the most developers and investors, he added.
However, other than those two, one would watch”network effects” for advice when looking for an investment opportunity. The most attractive, in his view, are altcoins whose networks show potential for growth in the crypto space.
It thus singled out Layer 1 coins as likely outperformers in 2022, with interoperability tokens also on its list.
“We see these layer-1s, stuff like Terra, Avalanche and probably Solana,” he said.
Solana is currently the 7th largest cryptocurrency with a market cap of $44 billion while Avalanche is down to 12th place with a market cap of $21 billion. Both coins are trading lower on the day, with SOL down 3.8% and AVAX down 4.3%.
Pal also believes that Polygon and Quant – a blockchain network aimed at connecting other blockchains through its Overledger technology – will also see further growth.
Real Vision CEO said this could be “the year of interoperability”, why Polygon, Quant could be big opportunities.
Last week, crypto strategist Michael van de Poppe expressed a bullish outlook for Polygon, adding that other tokens like Fantom (FTM) and Enjin Coin (ENJ) will also do well in the market.
