Bitcoin is currently waning in terms of its share into the digital currency sector known as Decentralized Finance (DeFi). On the contrary, it is Ethereum that has been playing the most crucial role of being the biggest contributor in the DeFi economy. The situation is likely to remain as such in 2022 according to experts. They argue that investors want big gains but they don’t want to spend huge sums. Instead, their preference is investing in rather small pockets cryptocurrencies such as Ethereum, Solana, Cardano, Polkadot, etc.
Carol Alexander is a Finance Professor by profession and has been teaching the subject at the University of Sussex. Alexander suggests that investors should keep an eye on Ethereum, Solana, Cardano, Polkadot for DeFi in 2022.
She argues that retail investors have come to understand that Bitcoin trading at decentralized venues is dangerous. Fearing this danger, the retail investors would turn their attention towards rather less risky digital currencies. They would be hoping that such digital currencies will play essential roles because their blockchains are already playing safe in the DeFi sector. Therefore Bitcoin will be out of the picture, suggested Alexander.
She suggests further than 12 months later from now, Solana’s and Ethereum’s market caps would be more than 50% of Bitcoin’s market cap.
As of today, the total value locked into DeFi has gone past US$ 250 Billion. The demand for DeFi is likely to remain on the higher side even for the year 2022.
As compared to Bitcoin, Ethereum is a better investment option as it emerged 2021’s strongest investment vehicle hailing from the digital currency industry. The value of Ether coins has surged by 437% since 1st January 2021 to date and continues to grow as such. However, as compared to its base value, Ethereum falls short of US$ 45,000 for making up to the level of Bitcoin.
Similarly, as compared to Ethereum, Solana also provides a much viable option of investment. It is affordable and at the same time has been performing side by side with Ethereum. Solana’s present market value is US$ 179 and 94% of people from the crypto community believe Solana will outshine the crypto market in 2022.
She even gives an edge to Solana over Ethereum. She argues that in comparison with Ethereum’s market cap of US$ 452 Billion, Solana’s market cap of US$ 52 Billion is very small. But considering its year-to-date growth, Solana has come a very long way in becoming the 5th most popular digital currency in the world. This proves that there is this vast space of growth available to Solana at all times. Furthermore, she argues that both, i.e. Ethereum and Solana, have several commonalities. For instance, both are fully equipped, and in fact already involved, in hosting projects such as DeFi and NFTs.
So, according to Sussex University’s Professor Alexander, Ethereum and Solana are the future of cryptocurrencies in 2022.