Although there are many investment options, picking a digital asset to put money into might be challenging. The cryptocurrency market is one filled with thousands of options. Thus, finding the right token to buy in a sea of cryptos can be daunting.
Of course, many investors that choose to diversify into this space opt for Bitcoin (BTC-USD) or another one of the top-tier cryptos. There are reasons for this. Size breed stability (at least relative stability), which can be important in times of stress. Plus, cryptos like Bitcoin have been battle-tested and stood the test of time.
That said, there are plenty of other high-growth cryptos that are likely to outpace Bitcoin in the growth department over the next decade. Here are three of my top picks in this regard.
The cryptocurrency market has been performing incredibly well this year, but one token stands out as one of the hottest – Ethereum (ETH-USD). After its “Shapella” upgrade, also known as the Shanghai hard fork, the token surged past $2,000. Despite minor retracements, it is still up by almost 7% this month and over 60% this year.
On April 12, the Shanghai Upgrade was launched. This upgrade permits validators of the Ethereum network to withdraw their staked ETH, although each staking pool will determine the withdrawal rate. The primary liquid staking protocol for Ethereum, Lido Finance (LDO-USD), has stated that staked Ethereum withdrawals (stETH) will not occur until May.
Analysts believe that the recent Shanghai hard fork upgrade has made Ethereum more accessible to investors. This could potentially unlock over $30 billion of liquidity in the Ethereum market. With this upgrade, investors can withdraw their staked assets more efficiently, providing more liquidity to the market.
If the current market environment, marked by increasing interest rates and recession risks, becomes less restrictive, I think it’s entirely possible Ethereum could reach or exceed its all-time high. How long this takes is the question, of course. But relative to Bitcoin, I think Ethereum probably has more medium-term upside.
Solana (SOL-USD) has performed remarkably well compared to other cryptocurrencies due to the recent surge in Bitcoin. At the time of writing, Solana is on a roll, surging nearly 10%, bringing the token’s year-to-date gains to 128%. Bitcoin’s 80% year-to-date gain isn’t bad, but Solana is clearly lapping this top crypto.
There are reasons for this. Solana is a key player in the world of decentralized finance, with a smart contract-enabled proof-of-stake blockchain. Indeed, in the world of NFTs, Solana is a leader, due to its speed and cost advantage.
There are other key factors long-term investors may want to consider. The recent launch of Solana’s Saga phone last April, priced at $1,000, could be a big medium- to long-term catalyst. This phone was designed to cater to Web 3.0, which Solana is clearly looking to dominate. If users can make crypto payments and trade NFT faster and more securely, more market share goes to Solana.
In hindsight, the Saga phone has accomplished two critical goals for Solana’s strategic plan. Firstly, it has united the various Web 3.0 initiatives Solana focuses on, including Solana Mobile and Solana Pay. Secondly, it has bolstered the company’s position in this high-growth niche.
Over the long-term, assuming Solana’s security holds up, I think this is a project with immense upside. Thus, for aggressive growth investors, this is certainly a token to consider.
Avalanche (AVAX-USD) has shown a significant increase in its value this year, with a rise of 72% since the start of the year. Though it’s not as popular as Bitcoin and Ethereum, Avalanche’s performance is close to those. Its uptrend is continuing with momentum.
Avalanche has unique advantages because it is similar to Ethereum in several ways. For instance, it operates on a proof-of-stake model that is more energy-efficient and can facilitate intelligent contracts and decentralized finance (DeFi) transactions.
Avalanche is not the only blockchain network that can facilitate smart contracts and run decentralized finance transactions. However, it stands out among rivals thanks to its distinctive characteristics. One such feature is the use of subnets, which allow users to create small blockchains on the Avalanche network in preparation for a future where individuals and businesses may need them.
I think Avalanche could be a long-term winner, given its growth potential driven by its unique features and use cases. Although Avalanche experienced a significant 90% drop during the bear market in 2022, like other tokens, there has been a mini-rally since the beginning of the year. However, over the long-term, I think leaders in the DeFi space, like Avalanche, could be the biggest winners.
On the date of publication, Chris MacDonald has a position in ETH-USD, SOL-USD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.