The most prospective cryptocurrencies
There are almost 10,000 different cryptocurrencies, fighting for users’ attention and trying to prove that their idea and its implementation are the most promising. But not all cryptocurrencies can be called prospective.
Some coins have already experienced their peak of popularity and new projects with more advanced ideas have come in their place. Some coins are created just as a joke or for hype and will be forgotten as quickly as they appeared. Others may simply copy an already existing idea. As a result, there are more than 2,000 “dead coins” already known, according to Coinopsy.
Still, there are projects that have survived the bear market, showing their sustainability and community confidence in the platform’s success. That is why a lot of investors consider these cryptocurrencies as good options in the long term. Although not all of the presented coins can become champions in price performance, their solutions have been demonstrating strong demand for more than one year.
When it comes to cryptocurrency, the first one people remember is Bitcoin. Even those who are far from the crypto market have heard something about it. For many newcomers, acquaintance with cryptocurrencies begins with Bitcoin.
Bitcoin has long held the title of the number 1 cryptocurrency. It is the first by market capitalization in the crypto market, has the highest liquidity, as well as the highest adoption level among traditional businesses. It’s easy to buy cryptocurrency with a credit card, and a lot of large companies already support Bitcoin as a payment option.
Bitcoin was created for borderless transactions without the need for a centralized authority. BTC uses blockchain to record and store transactions, and this technology became ubiquitous in the crypto market. Bitcoin also has a fixed supply of 21 million coins, so it has a deflationary nature. Because of this, bitcoin is considered a store of value and asset for protection against inflation.
Bitcoin has such a significant impact on the cryptocurrency market that the price of many cryptocurrencies follows Bitcoin. Although Bitcoin is quite volatile, it has established itself as a promising asset for investing in the long term. Even after falling more than 80% in price in 2012, 2014, and 2018, Bitcoin not only recovered but also set new highs.
BTC price performance for the last 3 years is more than 550%.
Ethereum is known as the main competitor to Bitcoin in the battle for crypto market dominance and steadily has been holding second place by market capitalization for a few years.
Ether is a platform for creating and running smart contacts and decentralized apps. Ethereum is the first mover in this field and it gives the platform an advantage. Most tokens and projects in the crypto market may be prone to use Ethereum due to the smart contracts standardization and a more extensive development base. As a result, Ethereum controls more than 80% of decentralized finance (DeFi) space.
Ethereum is also superior in terms of developer count to any other smart contract platform — more than 200,000. This makes the Ethereum community one of the biggest and builds confidence in the longevity of the project.
However, Ethereum’s popularity is in many ways both its strength and weakness. The significant growth has led to the fact that the platform often suffers from scalability problems, which leads to higher fees and network overload. But Ethereum is in the process of solving this issue by switching to the Proof of Stake (PoS) algorithm and implementing sharding.
ETH price performance for the last 3 years is more than 600%.
While many cryptocurrencies tend to move away from banking institutions, Ripple, on the contrary, is popular with banks and strives to cooperate with them.
Ripple’s idea is to make international financial payments easier and faster. Ripple does not use blockchain but instead uses a unique distributed consensus mechanism to validate transactions. Payments in RippleNet are instant and with minimal fees thanks to XRP cryptocurrency. This is an advantage over systems such as SWIFT where transactions can take several days and may have high fees due to the involvement of many institutions.
Currently, RippleNet is used by more than 300 providers in 40 different countries. Among the largest users of Ripple are American Express, MoneyGram, and Santander. Ripple is constantly strengthening partnerships with banks and has strong support from crypto enthusiasts. For many financial and crypto market analysts, Ripple has the potential to replace SWIFT as the main network for secure and reliable global payments.
XRP price performance for the last 3 years is more than 120%.
2021 has been one of the most successful years for Cardano. The cryptocurrency has burst into the top cryptocurrencies by market capitalization and continues to successfully advance along the roadmap.
Unlike Bitcoin and Ethereum, Cardano uses a Proof-of-Stake (PoS) algorithm. Instead of mining, validators validate new transactions by ‘staking’ their coins as collateral and receive the so-called staking reward for that.
Cardano developers call it a third-generation cryptocurrency because it tries to improve on the shortcomings of Ethereum and Bitcoin. This is achieved by utilizing multiple layers. The first layer can be used to perform the transaction of the native ADA cryptocurrency. The second layer is for creating smart contracts and decentralized applications. Considering that Cardano is already using PoS, which Ethereum is switching to, and the coming launch of smart contracts, Cardano is often referred to as the “Ethereum killer”.
Cardano is among the leaders in developer activity, according to Sanbase. This suggests that the launch of smart contracts on the Cardano network will make it a promising alternative to Ethereum. In turn, lower fees and faster transactions may attract DeFi projects.
ADA price performance for the last 3 years is more than 450%.
One of the main growth drivers for the crypto market in 2020-2021 is the DeFi sector. And Chainlink is one of the projects that benefited most from the recent DeFi surge.
Chainlink is a decentralized oracle network that aims to connect smart contracts with real-world data. Chainlink oracles allow developers to expand the capabilities of smart contracts and create more complex solutions. With constant access to real data, payments and other features of smart contracts are executed promptly and increase the reliability of transactions.
Chainlink is not the only solution in the oracle market, but the most widespread. Therefore, most smart contracts rely specifically on the data supplied by Chainlink. There is LINK cryptocurrency that is used for Chainlink network operation and maintenance. Further growth and development of the DeFi sector will positively affect the LINK price, making it one of the most promising coins in its segment.
LINK price performance for the last 3 years is more than 8100%.
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