- Bitcoin is not the only option in the crypto world; Ethereum-based cryptos are growing fast.
- Decentraland (MANA-USD): One of the best performing assets in 2021.
- Polygon (MATIC-USD): Ambitious plans might bode well for this crypto’s future.
- Uniswap (UNI3-USD): Its impressive growth pattern shows substantial long-term value.
Those looking for long-term buy and hold opportunities in the crypto world may well want to stick with Bitcoin (BTC-USD). That said, Ethereum (ETH-USD) and other Ethereum-based tokens are certainly on the rise.
The Ethereum ecosystem has grown to such epic proportions due in large part to the smart contracts that are embedded within Ethereum. Using these smart contracts, various decentralized applications (dApps) are able to create the kind of utility that has driven most of the growth in the crypto market.
Accordingly, developers have flocked to Ethereum as a place to build new projects. Many of these projects have their own ecosystems, and are tied to Ethereum. However, such projects also have their own ecosystems which are growing, in many cases, much faster than Ethereum overall.
Picking which Ethereum-based tokens to invest in isn’t an easy task. The Ethereum ecosystem is so vast, it’s impossible to truly dive into every project out there. However, looking at some of the top projects in this space, there are some pretty compelling options to consider right now.
Here are three of my top picks among Ethereum-based cryptos that could outperform in May 2022.
Top Ethereum-Based Cryptos: Decentraland (MANA)
A popular ERC-20 token, Decentraland (MANA-USD) is one of the oldest blockchain-based metaverse games out there. This platform features an intriguing combination of virtual reality and the crypto world. Accordingly, for those bullish on the future of where this sector is headed, Decentraland is often a top pick among long-term growth investors.
This game started in 2016 as a 2D game. However, since then, Decentraland has evolved into an immersive 3D universe of customizable activities, art, land, and more. The platform also utilizes NFTs, which are easily tradable unique assets stored on the blockchain.
Down nearly 75% from its all-time high, Decentraland investors are certainly seeing bearish sentiment be factored into this project to a greater degree than many of its peers. Perhaps expectations got too bullish last year. That’s probably a fair statement.
However, there’s a strong bullish argument that can be made for Decentraland from a growth angle. Accordingly, at these levels, MANA tokens look much more attractive today. For those expecting to see a bounce in May, this is a top token to watch right now.
Previously launched as Matic network, Polygon (MATIC-USD) was developed to improve Ethereum’s infrastructure. It is a project based in India, which aims at making transactions cheaper and swifter on the blockchain.
This scaling network operates using a proof-of-stake consensus. Thus, all projects based on Polygon benefit from the security provided by the core network. To date, Polygon has gained significant traction as the blockchain of choice for many developers looking to build interconnected blockchain projects. Indeed, the level of autonomy and scale Polygon provides really opens the door to a wave of innovation to be built on Ethereum, that may otherwise not materialize.
Many investors view Polygon as central to the medium-term outlook for the Ethereum ecosystem. Of course, the upcoming Ethereum merge may prove to degrade Polygon’s value to some degree. However, with continued delays on this front, Polygon’s status as the eighth-largest DeFi network by total value locked appears to remain intact.
Currently, Polygon has more than 7,000 decentralized applications running on top of its network. Until this changes, I think MATIC is an interesting token to consider in May.
Top Ethereum-Based Cryptos: Uniswap (UNI)
Uniswap (UNI3-USD) is a decentralized exchange built on the Ethereum blockchain, used to swap ERC-20 tokens. ERC-20 tokens are those that utilize Ethereum’s blockchain. Accordingly, Uniswap has grown to be come the largest decentralized exchange out there, by a rather wide margin.
Where Uniswap provides value is in its decentralized structure. Unlike other centralized exchanges such as Binance or Coinbase (NASDAQ:COIN), Uniswap allows investors to swap cryptos without opening an account. Using a wallet, investors can swap a wide variety of tokens, with better anonymity and lower fees.
UNI tokens are required to pay transaction fees. Accordingly, this token’s value is largely a function of transaction volumes on the Uniswap network. As this network grows, investors in UNI can benefit from higher valuations over time. At least, that’s the theory.
This coin returned around 300% in 2021. Such a spectacular performance indicates that it won’t slow down on growth in the near term.
Another great reason to invest in Uniswap in May 2022 is due to its Version 3. This upgrade is significantly better than Version 2 as it extends around 4,000x capital efficiency.
UNI was worth $5 in the early months of 2021 and reached $17 in December. Although the coin has dropped recently, it is still one of the top 25 cryptocurrencies.
On the date of publication, Chris MacDonald 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.