Crypto Recovery 2023: 3 Cryptocurrencies Worth Buying Now

  • Investing in these three cryptos could help you make the most of their projected rise by 2023.
  • Bitcoin (BTC-USD): This crypto has been performing well, reaching a multi-month high
  • Ethereum (ETH-USD): Over the past two weeks, Ethereum has seen a growth of over 30%.
  • Solana (SOL-USD): Has the potential for long-term growth due to its association with NFTs and increasing involvement in the gaming industry.
crypto recovery - Crypto Recovery 2023: 3 Cryptocurrencies Worth Buying Now

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It’s been quite a year since it came to the cryptocurrency space. A rather broad-based crypto recovery has been seen, with the overall market capitalization of the entire crypto sector continuing to hold the $1 trillion level (at least, at the time of writing).

Higher-risk assets are seeing a much more impressive recovery this year for several reasons. First, the Federal Reserve has done its job in bringing inflation down. This could mean that rate hikes are set to slow, and a more accommodative monetary policy could result in rising valuations.

Second, the extent to which cryptos and other higher-risk equities got hit in 2022 paves the way for a more impressive resurgence. If we are on the verge of another bull market, higher-risk assets should be the first place investors look.

In the crypto industry, I think these three tokens are worth a look at first.

BTC-USD Bitcoin $22,904.60
ETH-USD Ethereum $1,653.50
SOL-USD Solana $23.19

Bitcoin (BTC-USD)

A Bitcoin (BTC) coin surrounded by gold.
Source: Shutterstock

Every investor should consider including Bitcoin (BTC-USD), the leading cryptocurrency by market size, in their portfolio. Despite the skepticism of some investors, buying Bitcoin during its lows offers a compelling investment opportunity.

Recently, Bitcoin has been on an upward trend, surging past the $20,000 level for the first time in two months, breaking its medium-term downside trend. At the time of writing, Bitcoin is just below the $23,000 level, poised for a continued breakout if this momentum continues.

The reason why many investors choose Bitcoin is its historical track record. The overall performance of Bitcoin since inception beats any other asset class out there. Accordingly, while critics cite high energy usage and other downsides of proof-of-work validation, this is a crypto I think makes the most sense as a starter investment for those just starting to consider cryptocurrencies right now.

Ethereum (ETH-USD)

A concept image of mining an Ethereum (ETH) token.
Source: Shutterstock

Ethereum (ETH-USD) is a crucial player in cryptocurrency, serving as the foundation for most decentralized applications. Indeed, the fact that Ethereum’s network was the first prominent player to incorporate smart contacts has allowed this crypto to outperform its peers.

Many prominent investors believe that a potential “flippening” could happen soon, in which Ethereum takes over the top spot in terms of market capitalization from Bitcoin. It’s certainly possible, and I think Ethereum maxis have a good reason for this argument.

Simply put, most of the functional crypto projects that create utility out there are based on Ethereum or tied to Ethereum in some way.

Ethereum has experienced a tremendous rise in value, growing by over 27,000% from roughly $11 to over $3,000 between April 2016 and March 2022. Despite this, Ethereum’s price dropped to a one-year low of $1,091 on 9 November 2022 due to a market-wide downturn. However, by 10 January 2023, it had rebounded to around $1,400 and currently trades slightly above $1,600.

Solana (SOL-USD)

Concept art of the Solana (SOL-USD) blockchain.
Source: Shutterstock

Another project explicitly designed for decentralized finance is Solana (SOL-USD). This network is considered a main competitor to Ethereum, recognized for its fast performance and ability to handle many transactions.

Presently, it’s estimated that Solana holds a market share of approximately 1.1% in the NFT sector. This is remarkable, given its market share was only 0.01% at the beginning of 2021. This rapid growth is attractive to long-term investors, and the crypto’s recovery is likely.

Additionally, Solana witnessed substantial daily transaction growth in the second quarter. Over 40 million daily transactions were processed on the Solana network compared to 1 million for Ethereum from April to June. As a result, the Solana blockchain is perceived as more practical and less of an investment option.

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 Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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