2022 was a defining year for cryptocurrency — a year of extreme volatility, massive drawdowns, and unexpected winners. While the overall market suffered a brutal downturn, certain digital assets still managed to outperform. This guide examines the fast-growing cryptocurrencies of 2022, the factors behind their performance, and the practical lessons you can apply to your own investment decisions.
To understand what "fast growing" meant in 2022, you first need to grasp the broader market context. The year began with Bitcoin trading at around $47,000 and Ethereum at roughly $3,800[reference:0]. By the end of the year, Bitcoin had lost over 60% of its value, and the total crypto market cap had fallen from $2.3 trillion to just $843 billion — a drop of more than $2 trillion[reference:1][reference:2].
The market was battered by a series of catastrophic events: the collapse of Terra's UST stablecoin and the subsequent implosion of LUNA, the bankruptcy of FTX, and a widespread liquidity crisis that affected lenders, hedge funds, and exchanges. In this environment, the average return across the top 100 coins was -75.57%, and only 2% of all tracked coins posted positive returns[reference:4].
Despite the overwhelmingly negative market, a handful of cryptocurrencies stood out for their relative strength or, in some cases, actual growth. These assets were not necessarily the "winners" in a traditional sense — they were the ones that held up best during a historic downturn.
Decentraland was the fastest-growing cryptocurrency on the eToro platform over 12 months, with a 437% rise in the number of clients holding it[reference:5]. As a virtual reality blockchain platform at the centre of the Metaverse sector, MANA benefited from the hype around virtual worlds and digital real estate[reference:6].
The Dogecoin alternative Shiba Inu saw a 269% increase in holders on eToro, placing it second among the fastest risers[reference:7]. Despite being a meme coin, SHIB maintained significant retail interest throughout the year.
Polygon, a Layer 2 scaling solution for Ethereum, was one of the few Layer 2 projects that gained traction in 2022. It enabled developers to build scalable, user-friendly dApps with low transaction fees[reference:8]. In one seven-day period in June 2022, MATIC posted a nearly 20% gain[reference:9].
LEO was the only cryptocurrency in the top 20 (as of June 2022) that had risen in value on a year-to-date basis, posting an impressive 52.40% gain[reference:10]. LEO is the utility token of the iFinex ecosystem, which includes the Bitfinex exchange.
Solana had been one of the fastest-growing cryptocurrencies in the years leading up to 2022, with its value growing by more than 6,000% since January 2021. By 2022, it was still one of the most widely held cryptos, with open positions rising 33% despite price volatility[reference:12].
The cryptocurrencies that performed relatively well in 2022 shared several common characteristics. Understanding these factors can help you identify potential growth assets in any market condition.
Assets with clear, real-world applications tended to hold up better. Polygon's role as a Layer 2 scaling solution for Ethereum gave it a tangible utility[reference:13]. Decentraland's position in the Metaverse sector attracted interest despite the broader downturn[reference:14].
Tokens like LEO, which are tied to major exchanges (Bitfinex), benefited from the ecosystem's stability and user base[reference:15]. Exchange-backed tokens often have built-in demand and utility.
Meme coins like Shiba Inu demonstrated that strong community engagement can sustain interest even in a bear market[reference:16]. However, this type of interest is often volatile and sentiment-driven.
Projects that were advancing the technology — such as Layer 2 solutions (Polygon) and high-performance blockchains (Solana) — continued to attract developers and users[reference:17].
Evaluating cryptocurrencies for growth potential requires a systematic approach. The following framework can help you assess any digital asset, whether in a bull or bear market.
The table below summarises the key performance metrics and characteristics of some of the fastest-growing cryptocurrencies in 2022. All data is based on publicly available information and is for illustrative purposes only.
| Asset | Key Metric | 2022 Performance | Key Driver | Risk Level |
|---|---|---|---|---|
| Decentraland (MANA) | Holder growth (eToro) | +437% in holders (12 months) | Metaverse hype | High |
| Shiba Inu (SHIB) | Holder growth (eToro) | +269% in holders (12 months) | Meme coin community | Extreme |
| Polygon (MATIC) | 7-day price change (June 2022) | +19.74% | Layer 2 scaling adoption | High |
| UNUS SED LEO (LEO) | YTD price change (as of June 2022) | +52.40% | Exchange ecosystem | Moderate |
| Solana (SOL) | Open positions growth (eToro) | +33% in open positions | High-performance blockchain | High |
| Lido Staked ETH (stETH) | Market cap change | -3% (best DeFi performer) | Staking protocol | Moderate |
Note: Performance metrics are based on data from various sources and may not be directly comparable. Past performance is not indicative of future results.
Use this checklist to systematically evaluate any cryptocurrency for growth potential.
Scenario: In early 2022, a friend tells you about a cryptocurrency that has been "growing fast" and suggests you should invest. You decide to apply a disciplined evaluation framework before making any decision.
Takeaway: A disciplined, research-based approach helps you make informed decisions rather than emotional ones. Even in a fast-moving market, fundamentals matter.
Cryptocurrency is one of the most volatile and risky asset classes in existence. Prices can fluctuate dramatically in short periods, and you may lose a substantial portion or all of your investment. The examples and data presented in this guide are for educational purposes only and are not a recommendation to buy, sell, or hold any specific cryptocurrency.
This guide is for educational purposes only and does not constitute financial, legal, or tax advice. The information provided is based on publicly available data and may not be complete or accurate. Past performance is not indicative of future results.
Before making any investment decision, you should:
Never invest money you cannot afford to lose. The cryptocurrency market is unregulated in many jurisdictions, and the risk of fraud and loss is particularly high with small-cap tokens.
Decentraland (MANA) was the fastest-growing cryptocurrency on the eToro platform over 12 months, with a 437% rise in holders[reference:18]. However, "fastest growing" can be defined in different ways — by holder count, price appreciation, or market cap growth.
In terms of year-to-date price performance, UNUS SED LEO (LEO) was one of the few cryptocurrencies that posted positive returns, with a 52.40% gain as of June 2022[reference:19]. However, the overall market was overwhelmingly negative.
Some cryptocurrencies grew in terms of adoption, holder count, or relative performance due to strong fundamentals, community engagement, or exchange support. However, most still experienced significant price declines over the course of the year.
No investment is entirely safe, and fast-growing cryptocurrencies often carry higher risk due to their volatility and the speculative nature of the market. Always conduct thorough research and never invest more than you can afford to lose.
Look for strong fundamentals, a clear use case, an experienced team, growing adoption, and sufficient liquidity. Avoid projects that rely solely on hype or speculation.
Do your own research, diversify your portfolio, have an exit strategy, and never invest more than you can afford to lose. Avoid chasing hype and always consider the broader market context.
Yes, but they were extremely rare. Only 2% of all tracked coins posted positive returns in 2022[reference:20]. UNUS SED LEO (LEO) was one of the few that managed to post a positive year-to-date return[reference:21].
This guide does not provide investment advice. Past performance is not indicative of future results. You should conduct your own research and consult a financial advisor before making any investment decision.