Three smart contract platforms that could see deeper adoption in 2022

Decentralized finance (DeFi) dominated media headlines all through 2021 and the sector, together with nonfungible tokens (NFTs), helped to provoke the mass adoption of cryptocurrencies.

Whereas excessive yields on staking and on the spot income from flipping jpegs have confirmed to be very profitable for traders, it’s essential to do not forget that none of it could have been doable with out the underlying capabilities of good contract know-how. 

The Ethereum community stays, hands-down, essentially the most broadly used layer-one good contract platform within the crypto ecosystem, however everybody is aware of in regards to the excessive price and clogged community problems with the previous few years.

In 2021, competing networks like Avalanche and Binance Good Chain enabled compatibility with the Ethereum Digital Machine (EVM) and this produced constructive outcomes for traders in each ecosystems.

Let’s check out just a few of the top-performing layer-one protocols in This autumn 2021 and examine how partnerships, funding from conventional finance and protocol developments would possibly profit every mission in 2022.


Algorand (ALGO) is a pure proof-of-stake (PoS) layer-one blockchain community designed to be self-sustaining and extremely scalable, thus making it able to dealing with heavy transaction masses for minimal prices.

In This autumn, the protocol launched the Algorand Digital Machine which enabled decentralized purposes (DApps), which means DeFi and NFT tasks may now function on the community.

Tether (USDT) and USD Coin (USDC) had beforehand launched on the community, so their integration into new DeFi platforms was comparatively easy, permitting for the short construct up of liquidity. The launch of the 150 million ALGO Viridis Fund by the Algorand Basis was additionally designed to speed up the event of the DeFi ecosystem on the community.

The mission additionally attracted the eye of institutional traders, and a large money infusion got here from Borderless Capital who launched a $500 million fund to assist develop DApps on Algorand. Hivemind Capital Companions additionally chosen the protocol as its first know-how associate.

In October, Algorand launched governance options that enabled ALGO holders to have a say sooner or later improvement of the protocol.

ALGO/USDT 1-day chart. Supply: TradingView

On Nov. 18, 21Shares introduced the launch of a physically-backed Algorand exchange-traded product which helped spark a rally within the value of ALGO to a yearly excessive at $2.99.


Tezos (XTZ) is a versatile proof-of-stake blockchain designed to evolve over time with out the necessity to endure onerous forks. In This autumn, conventional finance entities just like the Arab Financial institution Switzerland partnered with the protocol to launch staking, buying and selling and custody providers for the mission’s native XTZ token.

On Dec. 7, the mission made headlines after it expanded its NFT ecosystem by partnering with Ubisoft, a significant gaming firm. The Ubisoft Quartz platform makes use of Tezos blockchain, and the gamers of Ghost Recon: Breakpoint will be capable of purchase and commerce game-specific NFTs within the market.

On Dec. 15, Rarible, a well-liked NFT market, additionally introduced the mixing of the Tezos blockchain into its ecosystem. This implies Rarible customers should purchase, promote and commerce Tezos NFTs in an surroundings that’s less expensive than Rarible’s Ether-based market.

A part of the rationale for the elevated consideration on the Tezos blockchain is the power effectivity of the community in a world that’s turning into more and more targeted on environmental sustainability.

Based on a current carbon footprint report from PricewaterhouseCoopers Advisory SAS, the Tezos community noticed a 70% improve in power effectivity in 2021, with its annual power consumption now estimated to be roughly the identical because the carbon footprint of simply 17 folks.

XTZ/USDT 1-day chart. Supply: TradingView

On the time of writing, XTZ is buying and selling at a value of $4.34 after hitting a yearly excessive of $9.17 on Oct. 3. This was simply previous to the broader market downturn that has put strain on costs throughout the crypto ecosystem because the market heads into the ultimate weeks of 2021.

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Elrond (EGLD) is a blockchain platform for distributed apps and enterprise-level companies that has the aim of turning into the know-how ecosystem for the “new web.”

Based on the mission’s web site, the community makes use of sharding know-how to allow the processing of 15,000 transactions per second (TPS) with a mean transaction value of $0.001.

The late-year value rally seen within the protocol’s native EGLD token got here after the launch of a $1.29 billion liquidity incentive program by the Elrond-based Maiar decentralized alternate (DEX).

EGLD/USDT 1-day chart. Supply: TradingView

Previous to the launch of the liquidity program, the worth of EGLD was on the rise due to its elevated use as a type of digital cost, together with a partnership with the Romanian music competition Untold, which introduced that tickets for its 2021 competition could possibly be bought utilizing EGLD.

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The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer includes threat, it’s best to conduct your personal analysis when making a call.