These cryptos to buy offer good upside for an eventual market rebound
These six cryptos to purchase have a lot of upside potential, particularly if the market begins to recover from current worries of a major recession.
- Bitcoin (BTC-USD): The most valuable cryptocurrency, with a market capitalization of $574 billion and a year-to-date loss of 37%. (YTD).
- Ethereum (ETH-USD) is the second-largest cryptocurrency, with a market capitalization of $242 billion and a YTD loss of 46.7 percent.
- Cardano (ADA-USD) is the eighth-largest cryptocurrency, with a market capitalization of $17.9 billion, which is extremely close to Solana’s.
- Solana (SOL-USD): With a market valuation of $17.8 billion, it is tied for ninth place with Cardano.
- Dogecoin (DOGE-USD) is the tenth biggest cryptocurrency, with a market worth of $11.5 billion and a price that is often comparable to Polkadot’s.
- Polkadot (DOT-USD): The 11th biggest cryptocurrency, with a market cap of $10 billion, is often included in the top ten cryptocurrency rankings.
Cryptocurrencies have been embedded in the minds of investors, owing to their use as decentralized blockchains. Their technologies are currently being utilized in decentralized finance (DeFi) and other decentralized applications (dApps), which eliminate intermediaries, additional fees, and bureaucratic and timing/allocation difficulties. These cryptos to purchase will rise considerably faster than the stock market once markets recover from their fear of a major recession.
In general, these cryptos have underperformed the stock market. As of May 19, Bitcoin (BTC-USD) was down 36.7 percent year-to-date (YTD). Invesco QQQ Trust Series 1 (NASDAQ:QQQ), which is a proxy for the biggest Nasdaq equities, is down 27.5 percent year to date.
With a market capitalization of $574 billion, Bitcoin is the most valuable cryptocurrency. The fact is that once the market chooses to recover, BTC is likely to make a return.
One reason is that the total number of coins available is restricted — just 21 million to be precise. The supply gradually approaches the limit as Bitcoin miners continue to produce more. Because there would be fewer theoretically accessible BTC coins, the price will rise as a consequence of the supply scarcity for new investors.
Bitcoin is a peer-to-peer digital money. This implies that all transactions take place between Bitcoin owners and participants who are equally autonomous. There is no need for an intermediary, such as a bank, financing business, or brokerage organization. All bitcoin owners have high hopes for this.
There are currently no plans for Bitcoin to abandon its proof-of-work (PoW) technology, which uses a lot of power. Other cryptos come into play here since they don’t employ mining-based protocols.
With a market value of $242 billion, Ethereum (ETH-USD) is the second-largest cryptocurrency. For the time being, it’s referred to as a hybrid platform since certain Ethereum versions employ the proof-of-stake (PoS) system to confirm transactions. In reality, Ethereum is considering a platform-wide switch to a PoS technology later this year.
Unlike Bitcoin and other PoW cryptos, Ethereum’s main use case is as a platform for applications and smart contracts. Smart contracts automatically carry out any agreement reached between the contracting parties, with no need for an intermediary.
ETH was trading below $2,000 on May 19, down over 47% year to date. Furthermore, it is significantly below its early November 2021 highs of around $5,000. Ethereum might make a large comeback if markets stop fretting about a major recession.
Cardano (ADA-USD) is the tenth most valuable cryptocurrency, with a market capitalization of $17.9 billion. That’s quite close to Solana’s market cap, which is positioned just below it. It is now trading at 52.75 cents, down 61.7 percent from its peak of $1.377 in 2021.
Cardano is designed as a multichannel platform that allows other cryptocurrencies to create apps on top of it. Its main purpose is to provide a faster transaction processing time and lower transaction costs than Ethereum.
Ethereum’s creators first believed it couldn’t handle a huge number of users. That has shown to be the case, since it often charges hefty transaction fees and validates transactions slowly.
Cardano has been embracing smart contracts and applications, particularly in the DeFi space, since September 2021. According to DefiLlama, Cardano’s total value locked (TVL) has increased from $3 million to over $130 million since the beginning of the year.
Solana (SOL-USD) is the ninth most valuable cryptocurrency, with a market capitalization of $17.8 billion. It is now trading at $51.75 per share, down 71 percent from $178.52 in 2021.
Solana, like Cardano, is touted as a speedier Ethereum alternative. Its primary purpose is to enable highly scalable dApps. It can handle 2,700 transactions per second as of this month (TPS). At its peak, the platform can handle 710,000 TPS.
However, the platform has grown in popularity to the point that it can currently handle millions of transactions without crashing. Solana claims that it is implementing modifications to better manage massive quantities of TPS. This is a nice problem to have if the problems can be resolved in the long term. It may result in a significant rise in the value of SOL.
Dogecoin (DOGE-USD) is a dog-themed cryptocurrency with a market valuation of $11.5 billion. The Shibu Inu dog is featured on the coin’s logo.
It was selling for 8.63 cents per coin as of May 19. This is down 50% from its highest price of more than 42.3 cents on June 1, 2021, and much below its price of 17.3 cents on December 31, 2021.
A growing number of businesses accept Dogecoin as a means of payment. This has contributed to its growing appeal and distinctiveness as a meme cryptocurrency. It also helps that Elon Musk has endorsed Dogecoin and seems to be supporting its growth.
Polkadot (DOT-USD) is the 11th most popular cryptocurrency, and it seems to compete with Dogecoin for the top spot on occasion. DOT is now trading at slightly over $10 per DOT token, down 64.9 percent YTD from its year-end price of $28.58 in 2021. Furthermore, it is significantly below its all-time high price of $53.88 set on November 3, 2021.
Polkadot is a blockchain platform that supports several chains. Other cryptos may utilize its platform to create targeted dApps and verify and complete transactions. It also allows for cross-chain data and asset transfers, not simply token transfers.
This makes it very helpful for smart contract applications, particularly in the DeFi space. These are the types of programs that enable investors to bet their DOT assets and receive a high payout in cryptocurrencies.
As a consequence, if the market recovers, Polkadot is anticipated to provide a highly leveraged upside return. This makes it one of the greatest cryptos to invest in for the long run.