Ethereum (ETH) Could Lead the Explosive Growth of Several Altcoins, Experts Say

Ethereum (ETH) Could Lead the Explosive Growth of Several Altcoins, Experts Say

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Despite the market crash and Ethereum’s volatile position, a number of analysts believe that it will lead the altcoin rally in 2022.

The basis for positive sentiment is the good prospects for such segments of the crypto industry as DeFi and NFT. Crypto analyst Aaron Arnold emphasizes:

– The amount of activity we are seeing in the NFT space, the DeFi space just continues to go parabolic.

The expert believes that both Layer 1 and Layer 2 solutions, which are characterized by high performance, can grow. Layer 1 solutions are the largest Ethereum (ETH) smart contract platform and its direct competitor Solana (SOL) e.g. Solana provoked discourse for a long time with its explosive growth in 2021. But the expert is sure that this growth will continue in 2022. Layer 2 solutions are focused on scaling Ethereum and other networks to increase their performance and reduce fees.

Aaron Arnold names three altcoins that can please their hodlers. These are Polygon (MATIC), Immutable X (IMX), and Metis Token (METIS). They speed up transactions and reduce network fees to almost zero.

Another analyst and trader, Justin Bennett, expects the Polkadot (DOT) blockchain for interoperability to show explosive growth. According to the expert, due to the useful functionality, the platform native token can rise by 78%.

Major billionaire investor Kevin O’Leary is also pinning his hopes on altcoin growth. But he has his own vision of cryptocurrencies. He claims to treat cryptocurrency projects like software and invest in them the same way he had invested in software, given their utility.

The expert claims to have successfully invested in software development teams 22 years ago. Now he chooses investment objects in the same way as earlier. He got acquainted with the developers of Polygon (MATIC) and is now sure that this is a strong team that can give a good result. O’Leary also positively assesses the economic effect of Polygon’s decision, it reduces fees in the Ethereum network.

The expert also highly appreciated the corporate-level network Hedera (HBAR). The project has a strong team and a clear goal to ensure security and compliance. These features attract partners, one of them is Boeing. O’Leary talks about cryptocurrencies:

– They’re software platforms. I say to institutions, ‘You criticize me for investing in Bitcoin? You own a big position in Microsoft [and] a five-percent weighting in Yahoo. What is that? That’s software.

The expert also considers Serum (SRM), a decentralized finance protocol that does not require trust, and Helium (HNT), a public blockchain for the Internet of Things, to be promising projects.