Analysts at US-based consulting firm The Motley Fool have announced five cryptocurrencies that investors should look into. Here are the details…
The first cryptocurrency in the analyst’s focus, UNI
Despite the current crypto winter, the blockchain and crypto industry remains remarkably innovative. But analyst Dominic Basulto points to five cryptocurrencies in particular. These coins change the way we think about crypto; believes it paves the way for a stronger and resilient crypto industry. In this respect, the analyst primarily points to Uniswap (UNI). With cryptocurrency exchange FTX crashing, it’s perhaps not surprising that Uniswap has made headlines. Unlike FTX, which is a centralized exchange, Uniswap is a decentralized exchange.
This has several important implications for the average investor who wants to avoid the risk of holding their crypto on a potentially unreliable exchange. The most important of these results is that you never have to keep your funds in Uniswap to trade. Instead, you keep your funds in a wallet that only you control. If you want to trade, simply link your wallet to Uniswap. Another important thing is that there are more options to trade on Uniswap. It also excels in trading other assets such as Uniswap, NFT.
The largest crypto currency also took its place on the list
Bitcoin, the world’s first cryptocurrency, has been leading the asset class for over 14 years. According to the analyst, there are many reasons behind BTC’s continued leadership. Among them are features such as unparalleled decentralization and security, and its inherent scarcity that supports the argument that there should be a great store of value. These features have placed Bitcoin in a class of its own, attracting more than the average individual investor.
Since 2021, the two countries have made Bitcoin a form of legal payment, the world’s largest asset manager announced that it will allow customers to own Bitcoin, and some publicly traded companies hold some Bitcoin instead of cash. If trends like this continue, Bitcoin is unlikely to lose its position as the most valuable cryptocurrency and will likely lead when a bull market returns.
Leading altcoin stands out in many areas
While Bitcoin is the leader, Ethereum remains an unshakable number 2. When Ethereum was invented in 2015, it completely changed the cryptocurrency landscape. Thanks to its programmable smart contracts, developers have been able to create applications that run on the Ethereum Blockchain, which is not possible with Bitcoin. With these smart contracts, new use cases such as NFT and decentralized finance (DeFi) have been created.
In the last few years, other blockchains supporting smart contracts have been created, but none have been able to replace Ethereum. Especially in terms of locked total value (TVL). Currently, Ethereum’s TVL is just over $27 billion and represents about 60 percent of all value in DeFi. The next closest Blockchain is BNB with just $4.7 billion. The large market share that Bitcoin and Ethereum have over their rivals are the main reasons why they are in the driver’s seat when a bull market in crypto returns.
Polygon (MATIC) emerges as a major ETH competitor
What many investors may not realize about Polygon, according to the analyst, is that it is a layer 2 blockchain built on top of the Ethereum blockchain, so there is a very symbiotic relationship between the two. Ethereum provides security and stability as a core foundation layer. Polygon provides faster processing speeds, lower costs and a superior user experience. It says it can process 65,000 transactions per second at a cost of just a fraction of a cent. This makes it lightning fast and incredibly cheap compared to Ethereum.
If you use Polygon, you really get the best of both worlds: high speeds, low costs, and full interoperability with the Ethereum blockchain. Based on this unbeatable value proposition, Polygon burst onto the scene in 2022. cryptocoin.com As we reported, blockchain ranked a number of high-profile partners throughout the year, including Disney, Starbucks, Meta, and Nike. They are all working with Polygon on innovative NFT projects and this trend is likely to continue into 2023. For example, Starbucks created an NFT-based customer loyalty program that runs on Polygon.
Last coin on the list: BitDAO (BIT)
According to the analyst, BitDAO is unique in that it is a decentralized autonomous enterprise (DAO). In layman’s terms, this means that it is an organization held together by a decentralized Blockchain network. Every decision and every transaction of this organization is sent to the Blockchain and coordinated through smart contracts. While each DAO can be set up to achieve different goals, BitDAO is set up to invest in different cryptocurrencies and Blockchain projects. In many ways, it’s like being part of an investment club where you partner with people from around the world to choose your next investment. Once you own a BitDAO token, you have one vote in the process.
