NEXT CRYPTOCURRENCY TO EXPLODE IN 2022: ETHEREUM (ETH), AND BINANCE COIN (BNB)2 min read
Looking at the prices of many cryptocurrencies after the recent decline, the adage “buy when there’s blood on the streets” comes to mind. While the cryptocurrency market is still fearful, this could be a great time to purchase popular tokens at a discount. While it’s impossible to predict which tokens will deliver the best returns in 2022, there are two that stand a good chance of rewarding early investors with sizable profits: Ethereum (ETH), and Binance Coin (BNB).
The Ethereum (ETH) merger is about to happen.
Everyone who is even remotely familiar with cryptocurrencies has probably heard of Ethereum (ETH), a utility token. Despite being slightly more complicated than the king, Bitcoin, its uses are extremely diverse. It is the token that drives a large portion of the DeFi and NFT universe, and development hasn’t slowed down at all.
In fact, the release of Ethereum 2.0 is expected to be among the biggest developments in the history of cryptocurrencies, and it will happen in the coming weeks. The proof-of-stake (PoS) system will be implemented in Ethereum 2.0, significantly lowering the entry requirements for taking part in the network’s expansion. The long-awaited merge will take place between September 10 and 20 according to an announcement made just last week by the Ethereum Foundation.
This could be the catalyst needed for ETH to start its next bull run and soar past 2021 highs of nearly $5000.
Binance Coin (BNB) is growing alongside Binance
The native token of the Binance exchange, the Binance Coin (BNB), has experienced tremendous growth over the past couple of years. The token is used for reduced trading costs and access to Binance Launchpad, an ICO platform that has seen some massive projects make their debut there.
If stablecoins are excluded, Binance Coin currently ranks just below Ethereum in the top tokens by market cap, and its growth appears unstoppable because as Binance expands, so does the demand for BNB. Numbers speak for themselves: Binance increased from $1.07 trillion in annual volume in 2020 to $7.7 trillion in 2021.
It comes down to basic economics: demand will almost certainly always outweigh supply, even with the supply restriction mechanism known as “burning,” where BNB tokens are eliminated from the supply. Given this, BNB may surge past its 2021 high during the subsequent crypto bull market.
Disclaimer: The information in this article is solely the author’s opinion, not financial advice, and is only being made available for educational purposes. By doing so, you acknowledge that the information is not intended to serve as investment advice or financial guidance. Before making any investment decisions, be sure to do your own research and consult with financial advisors.