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Which Penny Cryptocurrency Will Explode in 2022

which penny cryptocurrency will explode in 2021

This is interesting, as I think that 100x is doable for a few coins in that time frame. I’ll start with some criteria and then give you some specific thoughts.

#1 Criteria

We should begin with the obvious:

Criterion 1: The coin must exist 5 years from now.

Next, to survive that long, the coin not only needs a well-established team with a proven track record. It needs a viable product that is not likely to be displaced by competitors in 5 years. We also hope it’ll grow quite a bit.

That means we need

Criterion 2: The coin should have ecosystem properties.

By “ecosystem properties,” I mean that it needs to support other coins and applications in the way that YouTube supports millions of content creators. It could also be an exchange coin since established exchanges like Binance have obviously done well.

Related: How to Choose The Best Cryptocurrency Exchange

Finally, we need to make sure that if it grows 100x, the resulting value won’t be unreasonable. Ideally, we want that value to be provably achievable even today.

To do that, we need to set a cap on what the crypto market might look like in five years. And I think you could do that with a comparison to the global money market (I’m focusing here on US Dollars).

Money is classified in ranges from M0, the narrowest, to M3, the broadest.

M0 = All the physical currency in circulation, including notes, coins, etc. There are $1.7 trillion US dollars in existence, for example.

M1 = M0 + all the money held in forms of deposit that are available for withdrawal. There’s about $37 trillion of this.

M2 = M1 + savings deposits, mutual funds, money market securities and other time deposits. There’s about $90.4 trillion of this.

M3 = M2 + large certificate deposits, institutional money markets, and short term repurchase agreements.

The US Federal reserve stopped tracking M3 in 2006 since M2 gives them all the relevant financial information that they need.

If you include derivatives, real estate, cryptos and other investments, there’s apparently $1.2 quadrillion in existence.

Let’s just say that the crypto-market is not going to exceed $37 trillion in 5 years = a little over 15x the present market cap of $2.47 trillion for all coins.

The top 10 coins have a combined market cap of $1.984 trillion out of a total market of $2.47 trillion.

So, the top 10 coins represent 80% of the total market cap of coins.

That helps to put things into perspective since this highly skewed distribution is likely to continue.

If we assume that the best coins in the top 25–10 range in 2026 look like the top 10 today, then we get this criterion:

Criterion 3: the future coin cannot be not much more than $100 billion in total market capitalization.

#2 Coin Selection

Given the criteria, I had to look for coins outside the top 100. These are all quite provisional projects and many will fail. To do this trade right, then, just assume that 4 of the following 5 will go to nothing or almost nothing. The fifth will hopefully be your 100x earner.

If you started with $5000 and divided that equally, then, you’d lose $4000 but make $100,000 on your win, netting you $96,000. That’s the goal.

Related: Fundamental Guidelines on How to Prepare for Cryptocurrency Exchange

Here are some of my picks just outside the present top 100 that might make it 5 years and do 100x. I’ve organized them by market capitalization because they are all equally (un)likely to succeed.

1. 1 Inch ($1Inch)

which penny cryptocurrency will explode in 2021

This is a decentralized exchange aggregator—so it allows users to swap coins across exchanges more effectively. It’s even available on Gemini, one of the most restricted exchanges in the world. So, there are plenty of possible adopters.

2. Ren ($Ren)

which penny cryptocurrency will explode in 2021

This provides liquidity (money) for DeFi platforms. When you try to buy a coin, you need someone to sell you that coin—that’s liquidity. Ren does that across various blockchain platforms. It’s down about 45% since its February high.

3. Voyager Token ($VGX)

which penny cryptocurrency will explode in 2021

Voyager is a competitor to Coinbase in the US. It has no fees, as opposed to Coinbase’s stupidly high fees, and allows people to lock up tokens on its platform for high yields (10%+), unlike Coinbase which only allows for 2% yields. To get those higher yields, you need to buy $VGX though.

4. Curve DAO ($CRV)

which penny cryptocurrency will explode in 2021

Curve is a decentralized exchange for stable coins—to swap Tether into USDC for example. It’s also available on Gemini, meaning that everyone has access to this one.

5. iExec ($RLC)

which penny cryptocurrency will explode in 2021

This one pumped hard recently, but has crashed down about 40% from its high—still 100% more than pre-pump levels. It offers decentralized cloud computing resources. I’ve included it because it might pump again and it'll work as an ecosystem if it succeeds.

Concluding Thoughts

Of course, maybe none of these coins will make it 100x in 5 years. They might all crash out to nothing. So, do not take me to be recommending any of them. I’m just thinking about a possibility.

Related: Beginners Guide to Cryptocurrency Trading

I’d be ready to trade these fast too. If they do pump hard soon, sell fast. Are often done in 3 to 7 days.

Of my various picks in answering questions like this one, by far the ones that have done the best are exchange coins. I picked $BNB way back when it was trading in the $20 range and $OKB just a few weeks ago when it was in the low teens (and ranked about 100). So, that gives you a sense of timing.

If we are on a down-cycle, exchange volume falls, so those coins drop in value. If we bounce back, they seem to bounce a lot.