LeoFinance - Cryptos I am Interested or Invested in 2022?

The start of 2022 has crypto pretty much where it left off in end of 2021. A lot of consolidation. As where the markets stands I am focused on investing in just a few cryptocurrencies in 2022. To be exact it is about half a dozen tokens and I will discuss my reasons behind picking them. Here is my list of coins/tokens I am already invested in or plan to invest in 2022. In the order of my most likely to invest to least likely to invest.

1. Terra Blockchain - UST/Luna
2. Polygon Blockchain - MATIC
3. Fantom Directed Acyclic Graph (DAG) - FTM
4. Avalance Blockchain - AVAX
5. Osmosis Blockchain - OSMO
6. Cosmos Blockchain - ATOM

Why Defi?

My core thesis of investing in the coins listed above has to do with mainly Defi. My top four picks all are currently ranked in top 10 in Total Value Locked (TVL). The initial thought here is the more money the blockchain has locked up the more interest there will be on the platforms.

On the other hand why I did not pick Ethereum, BSC, or Solana I have one simple reason. All three have blossom in 2021 and since have either took a significant deep in price, drop more than 20%. Of course it is not just price that dictated my decision to not pick those three, but also the potential of other projects that are in the top 10 TVL have more potential of further expansion come 2022. This is not to say I don't think ETH, BSC, or Solana will grow, but I personally believe the others on my list will grow more and in turn potentially have higher returns.

Stability With Terra?

For loyal readers of my blog would know I am a big fan of Terra. I believe it will have a lot more room to grow in regards to its stable token UST. If there is any projection UST can potential rival top stable token USDT in market cap. Currently total market cap for stable coins are near $180 billion per coinmarketcap.com.

UST steadily climbed in usage and increase in market cap in 2021 to end up in fourth overall. This rise was all organic growth from the use of Terra's Protocols.

Speaking of Terra Protocols there is much potential ahead for Terra. For instance Defi-Llama currently is only tracking 17 protocols operating on Terra. There are hundreds of projects on Terra set to be release with their own problems to solve. While the rest of the top chains in TVL has close to 100 or more protocols all ready operating. The potential of Terra to attract even more liquidity is there if more projects come online on Terra.

Lastly with Do Kwon leading the way I have a lot of faith in Terra. For instance USA Security Exchange Commissions (SEC) subpoena Terra during a convention middle of 2021. Within weeks Kwon and his lawyers went on the attack against the SEC with a lawsuit of their own. The focal point was Terra's stable token UST that the SEC had issues with. However Kwon made excellent points to negate any laws that the SEC is accusing Terra has broken. The fact that UST is backed by nothing and is not an asset makes it not a security under SEC jurisdiction. Through watching multiple interviews of Kwon regarding SEC lawsuit and his enthusiasm towards Terra Ecosystem I have faith in Terra.

Polygon Not An Ethereum Killer?

I have heard countless times how the crypto traders are trying to look for the next Ethereum killer. As ETH is the first blockchain to ever create the use of smart contracts it is consider the farther of Defi. With this status I do not believe ETH would loss its top spot in TVL or Defi project for many years to come.

As there are many investors in the ETH blockchain there is a lot of developers also trying to bridge ETH toward a brighter future. ETH being second in market cap only to that of BTC a lot of money is at stake. One of the projects that has been in the works for years and has potential to make ETH maintain its lead is non other than Polygon.

Polygon's native token MATIC allows Ethereum transactions gas fees to be reduced and transaction speeds increase. This will make Ethereum stay relevant for 2022 and years to come. Meanwhile MATIC itself has its own protocols that is introducing Defi for stake holders very similar to that of ETH. Look story short since ETH is the father that has succeed in the crypto space I see MATIC as the child that is following in the father's footsteps.

Fantom and Avalanche

I will be honest here I do not have in dept knowledge to give a full explanation of Fantom and Avalanche. However I am basing my understanding of Defi to lean toward investing in both of these native tokens.

(Courtesy of Coinrank News)

Currently FTM has multiple protocols performing really well. There is multiple collaboration between defi protocols with the use of FTM and it is becoming a big hit. FTM for 2022 has been up over $3 and that is in itself proof that the DAG has a lot of potential. Note when Fantom first was created the native token started at $0.01!

On the Avalanche blockchain there is a lot of talk about money markets and its swaps between tokens being nearly fee-less. The staking of its native token AVAX also providing air drops has all this making it resemble a lot like Terra but with its own uniqueness to it. I look forward to learning more about AVAX and FTM down the road and hopefully will have stakes in both of these projects in 2022.

Conclusion

I end this post as I only talked about the first four tokens on my list because I believe the 5th and 6th are more like wild cards. Osmosis and Cosmos are separate blockchains but Cosmos is the foundation of Osmosis. Not only that Cosmos is also the origin of Terra, Binance Smart Chain, and crypto.com. These blockchains are some of the most popular and well know in the cryptocurrency space so Cosmos definitely has my interest.

(Courtesy of Medium Link Story by: Julian Koh

Cosmos nicknamed the Internet of Blockchains has a wide array of interconnections with multiple projects yet itself has yet to be really be noticed much since its creation. This is partly because the developers have been focused on creating a platform that is easy to use by others first instead of concentrating on developing protocols on the Cosmos blockchain itself.

However with so many successful projects now running strong and some in the top 10 in TVL it has come to a point where Cosmos is itself trying to bridge its own blockchain to be used by everyday users.

To date on Defi-Llama Cosmo's native token ATOM is only being used on one protocol StaFi. With less than 10 million in Defi there is a huge runway ahead for Cosmos.

I end my post with my hunger of Defi to recommend Osmosis. Although I have Osmosis ahead of Cosmos I mostly done so in part I have Luna liquidity staked Luna on the Osmosis DEX. I hope in 2022 to grow my stake on the platform as it has proven itself to be a stable high yielding investment. The platform continues to have its native token OSMO rise year over year and in turn making liquidity farming one of the best in 2021. It may not have the highest yields but the certainty of gaining significant yields while having earned rewards consistently appreciate in price what is not to love?

Chart of reward token OSMO above and what is not like about that? A steady rise in value is all we really want when it comes to investing.

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!