4 Mid-cap Altcoins to be Bullish on in 2022
in Raydium (RAY)
The 2021 cryptocurrency bull market pushed the value of the top 100 coins to at least $1 billion each. This group includes the blue chips of the crypto space, available from major exchanges and supported by most multi-token wallets. In a volatile market, these are often the safest bets.
Bubbling just below them are the biggest mid-cap contenders. Some of them are meme coin wannabes or also-rans, destined to end up in second or third place in their market niche or to disappear completely within a year. But a few will likely be surprising in 2022, altcoins that have the potential to make you want to slap yourself for not buying before they shot to the moon.
Here, we’ll take a closer look at four mid-cap altcoins to keep an eye on in 2022.
The founders, motivated by Soundcloud removing many of their favorite artists after securing a licensing deal with Warner Music Group in 2014, launched Audius in late 2019. It now claims over 100,000 artists and 5 million users.
In July 2021, Audius teamed with the Solana Foundation to create a $5 million fund to encourage artists to embrace decentralized technology. And since August, Audius tracks can be seamlessly added to TikTok videos.
Completely free, Audius is accessible through its website or apps for Android and iOS. Artists earn rewards through token incentives and have complete freedom to monetize their content however they wish.
AUDIO is the ERC-20 token used for staking, governance and unlocking Audius rewards. Trading began in Oct 2020, with 7% annual inflation of its circulating supply. It reached an all-time high (ATH) of about $4 in March 2021. Staking, as of October 2021, yielded about 23% annually, though this is likely to decrease as it becomes more popular.
As more artists have come on board, including Deadmau5, 3LAU, and Rezz, AUDIO’s long-term growth looks promising.
One dark cloud is that AUDIO hasn’t yet been approved by the U.S. Securities and Exchange Commission. This means Americans can’t buy it on any US-registered exchange.
Raydium has the look and feel of Uniswap, though it’s much faster and cheaper to use.
All funds deposited are converted to limit orders (orders to buy or sell at a set price or better) that reside on Serum’s order books. Raydium liquidity providers thus have access to Serum’s entire order flow.
Raydium’s native token is RAY, which is used for liquidity mining incentives, staking, gaining eligibility for new project launches, and participation in future governance. LP yields are remarkably generous, currently as high as 90%.
In the long term, Raydium aims to become the leading AMM and liquidity provider for Serum. And Solana’s speed and low cost may make it a leading DeFi platform overall. This would be good news for RAY’s future.
The Sandbox (SAND)
The Sandbox is a virtual world where players build, own and monetize their experiences. Originating as a mobile phone game in 2011, this all-new version is built on the Ethereum blockchain.
Owners of virtual land can develop their plots as they wish, building attractions, charging admission and hosting events and parties. Plots can be combined to form estates. A booming secondary land market has already emerged on OpenSea.
Game tools include a 3D Voxel modeling package, a marketplace to buy and sell game assets and a Game Maker to create and play any game imaginable.
The Sandbox has partnered with a diverse lineup of celebrities and organizations, including Snoop Dogg, The Smurfs, The Walking Dead, Atari, CryptoKitties and Hell’s Kitchen. Their roadmap reveals ambitious plans, including a mobile version and live virtual concerts in 2022.
SAND tokens are used within the Sandbox ecosystem to buy in-game items and pay for rent and experiences, as well as governance, staking and providing liquidity to Uniswap. Half of all transaction fees are awarded to stakers. They can be purchased through Binance, Gate.io, LATOKEN and Uniswap.
Ultimately the success or failure of SAND will depend on how popular the platform becomes with players. If land sales are a good indicator, it has a very bright future.
Injective Protocol (INJ)
DEXs tend to be slower and more expensive than centralized exchanges and trade tokens on only one blockchain (for example, Uniswap on Ethereum). By contrast, Injective Protocol allows users to create any crypto or synthetic financial market across multiple chains, quickly and with no gas fees.
Technically, it’s a layer-2 solution that uses Tendermint-based Proof-of-Stake to enable cross-chain derivatives trading across Ethereum, Cosmos, and other blockchains. It includes a Verifiable Delay Function (VDF) to prevent front-running, the unethical practice of trading using insider knowledge of future transactions.
Injective is extremely easy to use, has a strong development team, and is well-financed by venture capital heavyweights including Pantera Capital and Binance Labs.
INJ is its native token, launched in July 2021. It’s used for governance, yield farming (providing liquidity) and staking. Sixty percent of exchange fees buy back and burn INJ, reducing the supply.
How to buy altcoins safely
Mid-cap altcoins are inherently riskier than those in the billion-dollar club. Not only are prices more volatile, but the chance of becoming an also-ran or outright failure are higher. Therefore, diligent research is more important than ever.
It’s also important to note whether it’s legal to purchase a particular token in your country. Centralized exchanges that verify your identity usually handle this automatically, but if you trade on a DEX, be aware of legal restrictions.
Finally, mid-cap tokens are often not listed on the biggest exchanges, so make sure to choose a reputable one. CoinGecko provides Trust Scores for hundreds of centralized and decentralized exchanges to help make a wise choice.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.