Introduction
Cryptocurrencies have become the major grist for the investment mill due to their faster adoption rate than the internet itself. The decentralized digital asset is believed to hold limitless potential for leveraging higher profit margins.
In recent times, people have started seeing the crypto world beyond Bitcoin and are making Altcoins a part of their investment pockets too. Moreover, the experts believe that cryptocurrency adoption and use cases are expected to soar over 1 billion by 2026.
Being a decentralized structure, cryptocurrencies eliminate the role of intermediatory and their associated cost too. Thus, cryptocurrencies have transformed the way investment portfolio looks.
Determining the Performance of Cryptocurrencies
Though there are no fixed criteria for determining the growth potential of cryptocurrencies yet certain market elements are governing their performance. Based on these market elements analysts predict the future potential of digital currencies.
1 Adoption Rate: The growing buzz of cryptocurrency is leading to its vast adoption across the world. The higher returns on the digital currencies have created an environment for the experiments where each new altcoin coming up gets a fair opportunity to showcase its potential. As a result, performance measurement of the cryptocurrencies begins from their adoption cycle.
2 Critical Filing Need: Though cryptocurrencies are not owned and governed by central authorities these virtual currencies are subjected to certain legal aspects. Most importantly, the filing and reporting contribute immensely to its adoption rate and investment size in turn.
3 Competitors: Each cryptocurrency from Bitcoin to Altcoins hold unique attributes and the existence of several unique features all together in the market creates room for competition. As a result. Cryptocurrencies with major substitutes channelize the way for defining the longevity of the particular virtual currency.
4 Market Cap: The Crypto market cap indicates the total worth of circulating cryptocurrencies in the market. The currencies with higher worth attract investors in large quantity wherein the ones with
the lower market rate struggles to showcase their potential.
the lower market rate struggles to showcase their potential.
Top 5 Cryptocurrencies Dominating the Market
Cryptocurrencies have undergone several ebbs and flow over the years of their active involvement in the investment market. There have been several manipulation and speculation with the concept of cryptocurrencies but it was majorly a result of lack of knowledge.
With the people becoming more familiar with crypto aspects can draw precise conclusions and have made cryptocurrencies their prominent investment choice. Few currencies dominating the crypto sphere with their vibrant consistency and higher returns have become the major talk of the town.
BITCOIN (BTC)
It is one such name in the cryptosphere which does not require an introduction. Ever since its introduction in the year, 2009 BTC has remained the most consistent choice of investors due to its fast and economical transactions.
Yes, every 10 minutes new block gets created after a maximum throughput of seven TPS (transactions per second). Recently, in September 2021, Bitcoin stands as the second fastest-growing cryptocurrency with a market price of over $45000 and a market cap being at $856 billion.
According to the data compiled by the Blockchain center in the first half of 2021, around 488,000 Bitcoin addresses were created on daily basis and resulting in its steady growth. Moreover, Tim Draper the Bitcoin Investor and billionaire venture capitalist have predicted that Bitcoin will reach $ 250,000 by the first half of 2023.
On the other hand, the study of Digital Coin Price sees Bitcoin price growing to $ 90,127.56 by February 2022 making it the prominent player in the long run.
ETHEREUM (ETH)
The growth of the Ethereum ecosystem owes a lot to its smart contract functionality. Moreover, the switches of Ethereum from PoW mechanism to PoS have created a healthy opportunity for investors to create a progressive
the pool of passive income.
This blockchain network is the most talked-about cryptocurrency after Bitcoin. All the smart contracts, NFTs, security tokens, and other such products require the Ethereum platform to run effectively run their operations. The study of Digital Coin Price indicates that Ethereum is expected to witness a significant price rise to 371.64% leading to the increased return by 2028.
Furthermore, the ETH 2.0 is believed to reach a price range of $ 17,810 by December 2025 followed by $71,763 by 2030. Thus, it indicates an annual return of 41%. Its use cases and wide adoption by institutional investors have also contributed to its significant growth.
POLKADOT (DOT)
Being based on the Parachain blockchain network Polkadot offers support to build smart contracts. It allows effective communication of Decentralized Applications with other blockchain networks and speeds the overall platform transactions.
Keith Bliss, a president of Capital2Markets considers it to be the greatest competitor of Ethereum and reduces congestion with its enhanced feature. In September 2021, Polkadot’s price stands at $31.89 and provides an optimistic approach for future investment.
The study of Coin Price reflects that Polkadot’s price is expected to reach $50 by the first half of 2022 followed by $75 by the end of 2023. By the year 2025 Polkadot is believed to bring an annualized return of 44.26%. As a result, Polkadot is a progressive digital currency with huge potential to rule the crypto sphere.
CARDANO (ADA)
Being a third-generation cryptocurrency and launched in 2017 it is built on the Bitcoin and Ethereum platform. As a result, it becomes a scalable, secure, and sustainable virtual ecosystem. Moreover, it solves the energy usage complexities by providing six gigawatt-hours.
This cryptocurrency is based on the Proof of Stake consensus method leading to the staking of ADA. It processes 257 transactions per second in comparison to Bitcoin which does it at 7 TPS. Presently, this digital currency has shown its applications for Finance, Healthcare, and Agricultural Projects and led to its growth to $2.71 by September 2021.
Furthermore, the prices are expected to grow to $12,66 in 2025 followed by an annualized return of 24.2% by 2030. Thus, Cardano is becoming the hot potato in the crypto sphere and is all set to create its significant mark in the year 2022.
SOLANA (SOL)
It is an emerging cryptocurrency that has shown a significant rise in the past months and made it to the top 7th cryptocurrency with a present market cap of $ 551.8 billion. Solana is the smart contract platform competing with Cardano and Ethereum, Moreover, its association with the native NFT marketplace is the major reason behind the success of Solana and leads to its progressive association with Degenerate Apps too.
The virtual currency has attracted more than 400 projects including several Defi projects. The platform claims to process around 50,000 transactions per second with the least cost of $0.01 per transaction. In September 2021, Solana was observed at $175.79 with the growing expectation of 2224% and an annual return of 46.3% by 2030.
Other Emerging Cryptocurrencies in the Market
Uniswap which is fondly known as UNI is the 12th largest cryptocurrency with a market cap of $14,5 billion and allows investors to swap tokens instantly.
1 Dogecoin (DOGE) is meant for long-term prospects and has resulted in huge gains in the year 2021. Presently, its market cap is recorded at $32billion and holds the potential to fetch a huge return on future investments.
2 KAVA is a decentralized platform with a market cap of $596 billion and provides financial services. Its use cases are believed to increase in the years to come leading to a huge price hike.
3 Swipe (SXP) is the ERC-20 token with a present market cap of $509 million and is potent to grow with heavy investments.
3 Swipe (SXP) is the ERC-20 token with a present market cap of $509 million and is potent to grow with heavy investments.
Besides these, Fetch (FET), Polygon (MATIC), Chain Link (LINK), Self Key (KEY), etc. are prominent addition to the list.
A Way Ahead
The dynamic ecosystem of cryptocurrency creates a healthy room for investors to make huge returns. Besides, the largest crypto elements, the fresh cryptos are channelizing a way towards creating progressive long–term wealth. So, make every ounce of benefits with the strategic crypto bounce.
