Altcoins
here are the most popular Altcoins
SPONSORED ARTICLE*
The perfect word to describe 2023 in the crypto world is “roller coaster” as asset prices have undergone significant fluctuations. But it seems that the sector is heading towards a bull market again, so everyone thinks that the value of cryptocurrencies will increase. The industry will provide investors with multiple opportunities to increase their profits.
The main reason why experts believe the market will turn bullish is because Bitcoin has seen a price surge. Given the history of the sector, there is a good chance that all other cryptocurrencies will follow the same trend. In April this year, the market pioneer experienced a halving event that cut block rewards in half. After this event, the supply available for sale to miners dropped by 50%. Usually, halvings are preceded and followed by periods in which the price of Bitcoin increases due to increased demand, and Ethereum Price will follow.
In a context where the future of Bitcoin seems promising, it is also essential to take an interest in altcoins which generate increased returns on investment.
Ethereum
No one familiar with the crypto industry should be surprised that Ethereum is listed first when talking about altcoins that are performing well. Everyone recognizes its dominance in the DeFi system and the successful transition it has made to the more environmentally friendly Proof of Stake algorithm. Even though many other cryptocurrencies have gained popularity in the sector over the years, it remains a key player, with the second largest market capitalization.
Ethereum is more than digital currency; it is a platform that hosts dApps and smart contracts, and powers decentralized finance. Over the past few years, institutional investors have started to turn to Ethereum as it has proven that it has the potential to earn them profits.
Solana
Solana is one of investors’ top choices for altcoins to add to their portfolios during bull markets. Solana has attracted everyone’s attention because it has brought innovative solutions such as decentralization, security, and scalability to the market. It is ideal to add it to an investment portfolio at the end of the bear phase, as the chances of its price increasing during the bull phase are high due to its fast processing of transactions.
Solana has also gained a reputation as one of the most successful ecosystems for NFTs and DeFi because it focuses on developer experience and increased scalability. It is one of the main competitors of Ethereum as it has high performance in the industry. According to the data, sales of NFTs on its blockchain surpassed those of Ethereum at the end of 2023, partly due to increased interest from online sellers.
avalanche
Crypto experts believe that AVAX could be one of the altcoins that could explode in the coming months as the Avalanche platform has performed well since its inception. It was primarily developed to support the creation of decentralized services and applications, but it also serves other purposes. AVAX, its native token, is used to enable transactions, smart contract creation, and platform validation.
Avalanche is a popular blockchain platform because it offers users several benefits. It enables fast transactions, has a scalable architecture and its smart contracts are compatible with Ethereum.
Cardano
Cardano came to life after its developers conducted meticulous research with the goal of creating a scalable and secure network that crypto enthusiasts can use to achieve their goals. It focuses on smart contracts and sustainability, so it is the ideal candidate in the race to become a successful altcoin.
ADA, its native token, is more than a speculative asset as it has several real-world applications. It can be used to power voting systems, verify online identities, and improve the efficiency of supply chain management. Due to its multiple use cases, Cardano is among the blockchains worth investing in.
Polygon
Polygon has a native token called MATIC which takes the name of a parent network called MATIC Network. Polygon was launched in 2017 to offer crypto users lower transaction costs in Ethereum and other compatible blockchains. MATIC is also used as gas in other Polygon sidechains to pay for transactions and commissions. Users can receive MATIC tokens to keep the network running.
The main reason why crypto enthusiasts use MATIC is that it allows transactions over short periods of time.
Peas
Polkadot is often described as the Internet of blockchains because it functions as a bridge between different blockchains. Using Polkadot, blockchains can share data and collaborate, providing investors with new opportunities. Polkadot has gained popularity in the crypto industry because it has adopted a multi-chain approach. It may not have performed very well during the bear phase, but it has the potential to see a price rise during the next phase. Polkadot is one of the leading networks that developers use when they want to create custom blockchains, and it is ideal for hosting projects from any industry.
The creators of Polkadot understand the importance of interoperability and therefore developed a platform that allows blockchains to collaborate and connect, eliminating the existence of isolated networks.
What factors could make altcoins more popular?
No one can deny that altcoins are simply fascinating because of their unique features. However, not all of them perform well in the market. Here are the main factors that could allow alternative coins to increase in price.
– Economic factors play an important role in the evolution of altcoins. Their prices would rise as cryptocurrencies enter the mainstream and are used for financial transactions.
– Media influence can also trigger a price increase because it attracts attention in the market. Famous people can influence the development of altcoins because people who follow them usually listen to their advice.
– Sectoral regulation influences the evolution of the entire cryptocurrency market. The emergence of new networks and platforms has necessitated regulation aimed at creating a framework within which investors can work.
– Demand for altcoin will always lead to an increase in value because cryptocurrencies are very volatile. Market dynamics and demand show that the public is interested in a particular asset; therefore, its popularity is higher.
Last words
In the coming months, the cryptocurrency market could enter a new bullish phase and investors will need to be able to select the right assets for their portfolios.
*This item has been paid for. Cryptonomist did not write the article or test the platform.