Bitcoin (BTC) may have risen 65% over the year. However, there are a few altcoins that could outperform it in the second half of 2023. Motley Fool analysts highlight 3 projects at this point.
3 altcoins to outperform Bitcoin in Q2 2023
Bitcoin, which is currently up more than 65% throughout the year, remains one of the best performers of 2023. However, the recent pullback from the $30,000 level and all the economic uncertainty indicate that the balances may change.
According to Motley Fool analysts, Ethereum could be an ideal choice for the second half of 2023. This is because Ethereum has a fairly well-diversified crypto ecosystem. The Ethereum network is a leader in almost everything from NFTs to DeFi. This momentum also offers a positive future in terms of price.
The price increase is largely due to Ethereum’s ongoing technological upgrades. After Merge in 2022, Ethereum followed another crypto staking-related upgrade in 2023.
Ethereum co-founder Vitalik Buterin has dedicated Ethereum to a detailed roadmap of future upgrades. Thus, it enabled Ethereum to surpass and surpass any of its Blockchain competitors.
Solana (SOL) ready for a big comeback?
Solana has already grown by around 110% this year and remains a hub of innovation. Solana’s latest innovation, the Saga crypto phone, is a potential game changer. Saga is an Android powered mobile phone that simplifies everything you do with crypto.
For example, interacting with a typical mobile phone with a Blockchain wallet is quite difficult. However, Saga uses proprietary Seed Vault technology to simplify the process of using your phone as your crypto wallet.
So far, reviews about Saga have been mostly positive. The $1,000 phone has only been available to the public since early May. Therefore, it is still in the early stages and requires close follow-up. If the sales numbers are on the rise, then the new Solana mobile strategy will be the catalyst Solana needs to surpass Bitcoin.
Could Stacks be an altcoin to surpass Bitcoin?
Stacks is a Tier-2 solution for Bitcoin. In other words, it is a Blockchain designed to enhance Bitcoin. Outside of the Lightning Network, Stacks is arguably the most popular Layer-2 for Bitcoin. Focusing on smart contract functionality, Stacks is at the forefront of bringing enhanced performance to Bitcoin.
The most important feature of this functionality are NFTs. In the last two months, the arrival of NFTs on the Bitcoin network has caused an explosion in popularity, especially for meme coins. Currently, many investors want to invest in Bitcoin NFTs. Stacks has been one of the biggest beneficiaries of this. STX price recorded a double-digit rally independent of its competitors.
Stacks is much riskier than other cryptocurrencies. This is because it gives Bitcoin very high leverage. When Bitcoin rises, the Stacks price also rises. Thus, Bitcoin has increased by 62% year-to-date, while Stacks has increased by more than 200%. But when Bitcoin drops, Stacks reacts similarly. While BTC has dropped 10% in the last month, STX has lost around 30%.
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Which altcoin has the best risk-reward profile?
Analysts comparing Bitcoin with altcoins such as ETH, SOL and STX say the following about the best risk-reward profile:
Ethereum offers the best risk-reward profile of these three cryptos, primarily due to its superior diversification advantages. In 2023, it has largely kept pace with Bitcoin, and if Bitcoin stumbles, it’s easy to see that Ethereum could easily overtake it in terms of upside potential. As a result, we prefer Ethereum as a cryptocurrency that can outperform Bitcoin in 2023.
