Mid-cap crypto assets are generally regarded as having a market cap between 2-10 billion. As it stands right now on CoinMarketCap, that means assets below the top 20 and above the top 70.
These are the projects that are big enough to make a splash quickly, yet small enough for you to secure a very good position. Below I will be giving you my top 3 picks for 2022 of the 50 crypto’s in that range (between 20-70 by market cap on CMC).
3. Stacks (STX)
Formerly Blockstack, this blockchain is one of the most unique in the space. Ranked #53 on CMC, Stacks is a PoS chain that actually leverages and anchors to Bitcoin’s blockchain for every transaction, inheriting BTC’s base layer security, while also allowing for smart contracts through their native STX token and clarity programming language.
Because of their consensus mechanism, called proof-of-transfer, those who “stack” the STX token are rewarded in Bitcoin. Notably, it actually recycles BTC’s proof-of-work and makes Bitcoin a productive asset. But Bitcoin is slow you say? Well, Stacks created something called micro-blocks to fix this. You can read about it all, here.
So why can it blow up other than the tech? Well, Stacks is not on most of the major US exchanges yet, such as Voyager, Coinbase, FTX or Kraken. The supply of 1.8 billion is 71% circulated, and cities like Miami and NYC both have their city coins that run on the stacks Blockchain and are creating a Bitcoin revenue. Oh yea, it’s Bitcoin DeFi, too.
2. The Graph (GRT)
Non-consumer facing blockchains and protocols didn’t do well in 2021. Business-to-Business hasn’t really generated much value in the market. However, i think this will change as data becomes the new oil in our economy. The Graph, #50 on CMC, is used by thousands of projects, protocols and websites who needs to index blockchain data.
This is not easy to do via API’s and explorers. The Graph brings on-chain data off-chain. Think about DeFiLlama.com, which is the leading site that tracks DeFi. They use the Graph and their subgraph’s (open api’s) for 90% of the chains/protocols they analyze. As Web 3 grows, this data becomes more valuable.
Data indexing is already very valuable, just ask Google. As one expert pointed out on Twitter: “If “importance” is the decisive factor for token value, ChainLink & Graph would have higher mkt caps than Doge & Shib.” I think ‘importance’ will show itself in 2022 as institutions flood the zone. Corporate entities partnering with the Graph is coming.
1. Loopring (LRC)
The mid-cap to watch the most is Loopring, a ZK rollup scaling solution for ETH, ranked #56 on CMC. Even though they have already had a big run in November off of the speculation that they are partnering with Gamestop, they are still unknown to the masses. This fits with another trend for 2022 and that is ZK rollups having their moment in the spotlight. ZK Rollups are the end-game for ETH scaling, you can read more on that here.
The reason for all the hype mounting for rollups is because they don’t need validators or any extra trust layer, they inherit the full security of Ethereum and its consensus by default. Adoption hasn’t boomed because they are not yet EVM compatible, meaning they can’t really host dApps or smart contracts.
When that changes, watch out for Loopring and ZKrollups; Vitalik has been preaching them for a long time. If you need further proof this could be coming, just look at Polygon bending over backwards to figure out a way to support ZK rollups. It has become their sole focus. Just this morning they linked to a report of a “deep-dive” on ZK rollups.
With Loopring’s supply fully circulated, and ZK rollups (RIGHTFULLY) the flavor of the moment, watch out for Loopring to pull a Polygon this year, especially if they can support full EVM.