- Avalanche (AVAX-USD): Has become one of the largest cryptos in terms of total value locked (TVL).
- Cardano (ADA-USD): Crypto bulls are excited about the upcoming Hydra update.
- Ethereum (ETH-USD): Boasts over 3,000 DeFi apps.
2022 has especially been a rough year for cryptocurrency investors. Since November 2021, most cryptos have since fallen by double digits, and some by even 50% or more.
According to CoinMarketCap data, the global crypto market capitalization has plunged from almost $3 trillion in November to $1.93 trillion now. Rampant inflation and geopolitical tensions have contributed to the gloomy stock market sentiment that eventually spilled over into cryptos.
Yet, there are signs that prices of digital assets might be stabilizing. Now that the “crypto winter” seems to be fading away, patient investors have an opportunity to buy cryptos at reasonable prices. Given that cryptos are en route to becoming mainstream investment vehicles, we can soon see smart money once again go into these coins.
However, a repeat of last year’s tremendous gains in cryptos is unlikely. Therefore, I recommend our readers invest with a long-term perspective and focus on those cryptos with real-world utility. With that information, here are three cryptos set to gain traction in the coming months.
Cryptos to Watch: Avalanche (AVAX-USD)
52-Week Range: $9.34– $146.22
Launched by Ava Labs in 2020, Avalanche is targeting a significant portion of the smart contract and decentralized finance (DeFi) market. The network boasts a thriving decentralized finance ecosystem, growing rapidly with over 360 new projects over the past 18 months. Users point out that the network offers nearly instant finality, meaning that a transaction is completed to the point of no return.
Avalanche stands out among its peers by offering a platform with three separate blockchains. Each blockchain focuses on a dedicated task, allowing the network to provide ultra-fast transaction speeds and low fees. In addition, the platform uses two separate consensus mechanisms to ensure the safety and integrity of its network.
According to DeFi Llama, Avalanche has over $11 billion in total value locked (TVL), an important barometer that shows the interest level in a given digital asset. The TVL value is the sum of all assets deposited in decentralized finance (DeFi) apps. That said, Avalanche is the fourth-largest crypto in terms of TVL.
Moreover, AVAX-USD is down around 35% from its peak in November. Despite the dip, the altcoin has returned nearly 200% over the past year. And its market cap of $22.7 billion positions Avalanche among the top 10 altcoins in the market.
Cryptos to Watch: Cardano (ADA-USD)
52-Week Range: $0.755- $3.08
Launched in 2017, Cardano is a third-generation blockchain that enables smart contracts and decentralized applications. It claims to offer a more scalable and secure alternative to Ethereum. The demand for the altcoin has soared over the past year due to increasing interest in DeFi and non-fungible tokens (NFTs).
Cardano has a decentralized blockchain platform with proof-of-stake (PoS) validation. ADA-USD is the native currency used for rewards, transactions, and governance within the network.
Despite the interest in the digital asset, some investors are nonetheless frustrated by Cardano’s slow-and-steady approach to development. The platform launched its Alonzo hard fork upgrade only last September, which added smart contract functionality on its platform. But now, the crypto community is waiting for the upcoming Hydra update.
ADA-USD trades down more than 60% from its high in September and has also lost 23% year-to-date (YTD). During the crypto selloff, the altcoin has underperformed its peers like Ethereum and Solana (SOL-USD). Its market cap of $35.8 billion makes Cardano the seventh-largest coin.
Cryptos to Watch: Ethereum (ETH-USD)
52-Week Range: $1,561 – $4,860
Ethereum is the second-largest crypto in the market, with a market cap of $358 billion. First proposed by Vitalik Buterin in 2013, Ethereum was designed to increase the utility of cryptocurrencies by allowing developers to create their self-executing applications via smart contracts.
A great majority of decentralized applications continue to use the platform. There are currently over 3,000 DeFi apps on the network. In addition, the rapid growth of NFTs has provided further momentum to Ethereum.
Additionally, the full launch of Ethereum 2.0 is expected to be a key catalyst for the digital currency this year. It will help the network transition to a proof-of-stake (PoS) protocol, reducing transaction costs and improving network speed.
Despite high gas fees, the platform still accounts for the highest portion of total funds staked in DeFi projects. According to DeFi Llama, Ethereum dominates the DeFi space with almost $115.8 billion TVL, representing more than half of the total value locked in DeFi apps. Given such an over-subscription, investors are bullish on the planned upgrade.
ETH-USD is down almost 40% from its November high. Yet, despite the decline, it has gained 77% over the past year. Thsu, long-term investors could consider investing around these levels.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In a/ddition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.