Why this crypto could be the Dogecoin of 2022

[ad_1]

Dogecoin (CRYPTO: DOGE) was one of the most popular cryptocurrencies in 2021, reaching an incredible 4000% in one year. What coin could achieve a similar feat in 2022? I’m not particularly optimistic about the play, Splintershards (CRYPTO: SPS), but I’m very optimistic about the game it represents, Splinterlands. I predict the in-game Non-Fungible Tokens (NFTs) will be worth a lot more in a year or two than they are today.

Of course, no one can predict short term price movements. But it’s always fun to try! So here is my explanation of the meteoric rise of Dogecoin this year, and why – if the stars are aligned – Splinterlands and its crypto could see a fantastic increase next year.

Image source: Splinterlands

Why Dogecoin has skyrocketed in 2021

Dogecoin was a joke coin created in 2013 by Jackson Palmer and Billy Markus. The coin’s value has increased 49,000% since then.

Dogecoin price data by YCharts

One of the reasons Dogecoin took off is that the richest man in the world, Elon Musk, owns the coin and is tweeting about it. It was also a joke to Musk, but nonetheless the play skyrocketed.

One overlooked reason for the coin’s popularity is the ease with which investors can acquire it. The Robinhood brokerage listed the meme currency in July 2018. So when Musk tweeted “Dogecoin rulz” a day after April Fool’s Day in 2019, many ordinary citizens were able to invest some money in the coin. .

The inscription on a large purse raises a coin from darkness

Very few crypto coins are listed on the major exchanges. For example, Coinbase sells 140 cryptocurrencies, Gemini offers 95 coins, and Voyager Digital lists 72. Robinhood only sells seven. And yet there are over 8,000 cryptocurrencies and more are appearing every day.

How to acquire crypto that is not traded on a major exchange? You trade other cryptos for it. This means that you need to own a digital wallet and link your wallet to a trading market and transfer the crypto back and forth. This complexity limits the demand for the vast majority of parts. One of the things that can cause a crypto’s valuation to rise sharply is when a tiny micro-cap with little liquidity starts trading on a major exchange.

So, if you want to own crypto with the hope of seeing a huge 4000% return in one year, the place to shop is not on Robinhood or Coinbase. Rather, you want to find a crypto that has a good chance of debuting on a major exchange in the future. That’s one of the reasons I’m optimistic about Splinterlands.

Image source: Splinterlands

It’s the most popular game on the blockchain right now

Splinterlands has over 300,000 daily users. According to DappRadar, this makes it the most popular game on any blockchain. This popularity is due to word of mouth, as the company does not advertise. The base game is free and approximately 7,000 new people view it every day.

What’s interesting is that out of those 7,000 daily visitors, around 3,000 choose to pay $ 10 for a more complete version of the game. These fees allow players to earn NFT in-game assets. So that $ 10 investment turns a free game (which is a lot of fun) into a lucrative business. As you play, you earn Monster Cards, as well as two forms of Crypto, Shards and Dark Energy Crystals.

I have been playing Splinterlands daily for a few years now, and my NFT assets and crypto winnings are worth around $ 14,000. Liquidity is limited and cashing out is quite tricky, of course, as the Splintershards token is not sold on the major exchanges. People acquire NFT assets through gambling or trade cryptos for it. And you can add money to the game through PayPal and buy crypto or NFTs that way. But the real demand is for playing cards, not crypto.

Image source: Splinterlands

I was at the start of the game so I’m very happy with my 140,000% comeback so far. But I think this game, which is still largely under the radar, has the potential to grow a lot more in popularity and value.

For example, Axie Infinity is a gaming crypto that jumped 30,000% in 2021, in part because in August Coinbase listed the token on its platform. Every day, around $ 4 billion in NFT assets are traded on the Axie Market, according to DappRadar. Splinterlands has three times the number of players, and yet daily transactions aren’t even reaching $ 1 million yet. So Splinterlands is still tiny. It’s exciting, and I see a huge financial benefit as interest and awareness continues to soar.

Invest $ 10 in Splinterlands

Despite its popularity, Splinterlands has a micro-cap valuation. I haven’t added any money to the game yet. When you have a 140,000% return, you really don’t need it. Nonetheless, you need to invest at least $ 10 if you want to become an NFT owner and a crypto winner. With such a low cost base, I have no doubts that your percentage returns will significantly outperform anything Dogecoin does in the future.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

[ad_2]