Cryptocurrencies have had a banner year. Though bitcoin is currently down, its performance this year remains quite astounding.
However, bitcoin isn’t the only currency to thrive in 2021. Ethereum, dogecoin, and solano also had huge years and are looking to continue making big strides in 2022. Bill Barhydt, CEO of Arba, expressed on Twitter that bitcoin could hit $100K and ether $15K. Investing directly in a coin means staking your future to that coin’s performance.
Each individual currency comes with its own obstacles and challenges. “There is no question that Bitcoin’s dominance has waned recently,” said Matt Maley, chief market strategist for Miller Tabak + Co. to Bloomberg. “I think that is merely because some investors are chasing the ‘newest thing.’" Bitcoin is making huge leaps toward legitimizing cryptocurrencies in mainstream financial markets, but other coins may ultimately reap the benefits. Despite still holding 67.8% of the crypto market, bitcoin declined in December from 70.6% of total share.
Meanwhile, polkadot and cardona are both up 25% over the past seven sessions, while infinity coin tacked on 22% and FTX’s coin hit 10%. Even internet meme dogecoin has gotten in on the action, with a surprisingly successful year in the books.
Too Many Coins? Crypto Equities Might Be Your Best Bet
With so many coins performing well, it can be hard to pick out the winners and the losers. But crypto equities give investors a play that is likely to remain on top so long as cryptocurrency as a whole continues to develop.
Funds like the VanEck Digital Transformation ETF (DAPP) provide exposure to digital assets through companies that support digital infrastructure. Coinbase (COIN) is expected to do well no matter what happens with Ethereum 2.0, and Square (SQ) should thrive regardless of whether bitcoin keeps its throne or gradually gets supplanted by altcoins. Those two stocks are the top holdings in DAPP, which also includes everything from Miners like Hut 8 (HUT) to firms like Galaxy Digital Holdings.
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