Which cryptocurrencies are good to invest in right now?
We all know how volatile and active the crypto-asset market is. As a result, predicting and announcing which assets will perform best over the following few years is always tough. However, it is still possible to spot underlying tendencies that persist even when the market's attitude shifts dramatically. We've provided a few options for you to consider.
Of course, no study of the digital asset market would be complete without a thorough examination of Bitcoin. Despite a dramatic drop in recent months, it still accounts for 42 percent of overall market value. With the exception of Tether, which is a stablecoin, it is still the asset with the highest daily number of transactions, the highest level of notoriety, and the highest level of interest from institutional investors.
Above all, it is the asset that continues to provide the market's fundamental trend. As a result, it remains an important part of a crypto-asset portfolio, and it must now account for a major portion of it.
Despite this, there are a few criticisms that may be addressed, the first of which is the relatively slow technological growth. Even if it appears promising, the most recent evolution, Taproot, has yet to be deployed, and future advances appear unambitious. The Lightning Network, an overlay that allows for quick and low-cost transactions, is currently underutilised. Finally, it has a reputation as an energy chasm, which causes concern among states, prompting them to restrict mining operations on their soil.
It all adds up. Bitcoin has risen to the forefront of a new asset class thanks to the technological advancements of decentralised blockchain, and in order to maintain its worth, development teams will need to show that they can still lead in terms of innovation.
Ethereum is the biggest competitor to Bitcoin's dominance. Assets have been showing very strong market momentum in recent months, and it's easy to see why. The concept of smart contract, which was established on Ethereum and has permitted the emergence of many other projects, is the most important innovation since the birth of cryptoassets.
More over a quarter of the top 100 market capitalizations are Ethereum-based projects. When compared to the effort necessary to develop a new blockchain, mining systems, wallets, and so on, deploying a project on Ethereum in the form of smart contracts is trivial. All of these projects contribute to the inherent value of Ethereum in some way.
But the development teams aren't resting on their laurels, and they're hard at work on new projects every day, including Ethereum 2.0, which is set to launch at the end of 2021. This new version should, in particular, address existing network saturation issues while reducing power consumption by 99 percent.
As a result of these factors, Ethereum is now one of the most important players on the market and represents a fantastic long-term investment potential.