A digital asset that can be circulated without the need for the centralized authority of a bank or government is referred to as a cryptocurrency.
More than 20,000 cryptocurrency projects have been launched, constituting the $870 billion cryptocurrency market.
The cryptocurrency market has witnessed substantial development in the previous year, forming hundreds of new crypto businesses.
While some cryptocurrencies are used for payment, others for infrastructure development.
For instance, the Ethereum and Solana platforms provide the basis for developing new cryptocurrencies.
Consequently, there are now even more opportunities (and cryptos).
When people hear “cryptocurrency,” their first thought is of Bitcoin.
This is due to Bitcoin’s domination of the cryptocurrency market, which accounts for almost 45 percent of the total.
Therefore, anytime we discuss cryptocurrencies other than Bitcoin, we will refer to them as altcoins.
Ethereum is often considered to be the most popular alternative currency.
This article is based on the trending cryptocurrencies on CoinMarketCap. Let’s examine three of these Altcoins.
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MarketCap: $12,678,133,128
Position on CMC: #9
Trending List: #12
Current Price: $36.88
Solana SOL is one of the quickest and most stable cryptocurrencies.
Additionally, it is one of the most popular cryptocurrencies in the world now.
Due to its scalability, the project was able to get off the ground in the middle of 2021.
Since then, however, it has declined by 86 percent because of concerns about the Solana blockchain’s dependability.
Although the network is fast, it is not the most reliable.
Unlike Ethereum and Bitcoin, the Solana blockchain has been compromised several times.
Due to Ethereum network updates, Solana may be more difficult to expand its business.
If a growing proportion of Web3 developers elect to host their applications on Ethereum rather than Solana, Solana’s expansion will become more challenging.
Solana should be seen as a sound investment given that its creators have lately revealed that they are developing the world’s first Web3 phone.
Consequently, the network’s value may increase considerably shortly.
According to speculations, the Solana phone has a price tag of $1,000 and various outstanding features.
On the other hand, this is unlikely to have a long-term impact on the price of SOL.
Due to network difficulties, I do not advocate investing a significant portion of your cryptocurrency holdings in Solana at this time.
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MarketCap: $4,509,649,998
Position on CMC: #18
Trending List: #14
Current Price: $0.56
Polygon MATIC, an advanced project, seeks to achieve blockchain interoperability and scalability.
Regarding the MATIC currency, the Ethereum network ERC20 is of great importance.
Due to Ethereum’s ongoing system improvements, Polygon will be rendered obsolete in the immediate future.
Since most Web3 projects are already operating on the Ethereum network, the token’s potential to be utilized on other blockchains will not significantly increase its value.
Shortly, the Ethereum network is anticipated to be able to execute 100,000 transactions per second as a consequence of sharding.
The need for a network like Polygon will be practically nonexistent at that rate.
To prevent the substantial level of risk, I do not advocate investing in Polygon over the long run.
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MarketCap: $147,392,068,734
Position on CMC: #2
Trending List: #1
Current Price: $1,213.44
Finally, we have the second-largest cryptocurrency by market capitalization — Ethereum ETH.
Due to Ethereum’s more evolved network than Bitcoin’s, it has the potential to challenge Bitcoin in the future.
Most blockchain development is now taking place on the Ethereum blockchain, and its creators are working diligently to extend Ethereum even more.
Ethereum should be your first consideration if you believe in the metaverse or non-fungible tokens (NFTs).
Then NFTs are an option. Ethereum is the preferred platform for most Web3 efforts; thus, anybody desiring to join the network must own ETH.
Both the deployment of a smart contract and the formation of an NFT need ETH.
As these innovative blockchain technologies continue to gain widespread acceptance, they have the potential to become a highly valuable asset in the future.
Even though Ethereum has a smaller market value than Bitcoin, it consistently beats Bitcoin and has more severe collapses.
The standard deviation (SD) of Ethereum is somewhat bigger, and I think the long-term return on investment (ROI) for ETH will be much greater if the price declines further.
In addition, a significant update to the Ethereum network, referred to as “the Merge,” is anticipated shortly, which is likely to raise ETH.
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The importance of cryptocurrencies continues to increase, and there is no indication that this trend will soon reverse.
Initially, the purpose of cryptocurrencies was to solve inefficiencies inherent to traditional currencies.
Still, as a direct consequence of the development of blockchain technology, a multitude of new utility-based cryptocurrencies have developed in recent years.
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It is important to emphasize that absolutely nothing in this post should be interpreted in any way that it provides investing or financial advice.
The views shared in this article are solely those of the author, and as such, they should not be used as recommendations for financial transactions or investments.
This information is supplied “as is” without accuracy, reliability, or comprehensiveness assurances.
The bitcoin price has recently been subject to erratic swings due to its very volatile character.
Everyone considering investing in a cryptocurrency should research and know their region’s relevant regulations before deciding whether to invest their money into a cryptocurrency.
Reference: 3 Crypto Tokens with the Potential to Explode in 2022.
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