3 Cryptos to Buy to Play the Market Momentum Rally

Advertisement

  • The surge in the financial markets towards higher-risk investments in 2023 has prompted investors to consider these cryptos to buy.
  • Solana (SOL-USD): Its potential for scalability and speed has positioned this stock as a significant player in the blockchain space.
  • Polygon (MATIC-USD): Polygon’s volatility has been moderate compared to other cryptocurrencies.
  • Dogecoin (DOGE-USD): Dogecoin experienced a remarkable surge in its market value, increasing by an impressive 24%.
cryptos to buy - 3 Cryptos to Buy to Play the Market Momentum Rally

Source: iQoncept / Shutterstock.com

After a myriad of global macro issues, the cryptocurrency sector is currently on the rise. Risk assets are back in and investors are once again looking for cryptos to buy.

I didn’t think this would be the case in 2023, but here we are. Indeed, the global crypto market has crept back well above the $1 trillion valuation level, poised for more gains from here. That is, if we’re able to avoid what appears to be a looming recession and monetary policy makes a meaningful shift.

In any case, it’s clear that risk assists have momentum right now. Thus, those looking for cryptos to buy to take advantage of this trend have plenty of options to choose from.

The question is really where to get started in this sector. After all, this is one area of the investment world that’s perhaps murkier than others.

In this article, I’m going to provide two solid cryptos to buy as core long-term holdings, and one more speculative option. Let’s dive in.

SYMBOL COMPANY PRICE
SOL-USD Solana $24.56
MATIC-USD Polygon $1.15
DOGE-USD Dogecoin $0.09

Solana (SOL-USD)

Macro shot of a physical coin from the cryptocurrency Solana (SOL-USD)
Source: Rcc_Btn / Shutterstock.com

Regarding all major layer-1 networks, Solana (SOL-USD) is still highly preferred among most investors. This decentralized blockchain network is not only highly-scalable, but it’s also extremely fast. Indeed, this is what excites me about Solana’s prospects for the future. 

Solana’s blend of scalability and speed makes it a compelling option that could significantly impact the blockchain space. While Solana doubled in value during the first quarter of the year, it is still trading significantly below its April 2022 level, down approximately 85%. Accordingly, SOL is a promising option for investors seeking to purchase a top-tier cryptocurrency at a discounted price. 

Unfortunately, the value of SOL has been adversely affected by some high-profile security breaches, with the most prominent one involving a theft of over $324 million worth of Ethereum (ETH-USD) from the Solana network. However, developers have worked diligently over the past year to bolster Solana’s security measures and safeguard investors’ funds. 

As more activity picks up on Solana’s blockchain, particularly in the world of NFTs, there are plenty of growth catalysts that could take this token higher. Thus, for those bullish on the rise of decentralized finance, this is a top play to consider at these levels, even after doubling up.

Polygon (MATIC-USD)

A phone, on top of a laptop keyboard, displaying the logo for Polygon. Polygon Price Predictions
Source: sdx15 / Shutterstock.com

Polygon (MATIC-USD) is an innovative layer-2 scaling solution that operates on the Ethereum blockchain, and it has gained significant traction as a highly scalable and interoperable option for Ethereum network users. 

Due to the high transaction fees associated with Ethereum, Polygon has become increasingly popular among investors searching for more cost-effective alternatives. Polygon has a market value of over $10.2 billion, ranking it ninth among the most expensive digital currencies.

Polygon’s triumph can be credited to its numerous collaborations with notable projects in the cryptocurrency industry, such as Curve Finance (CRV-USD), Aave (AAVE-USD), and SushiSwap (SUSHI-USD). 

These partnerships have played a significant role in promoting the adoption and utilization of Polygon’s technology. Moreover, Polygon’s MATIC token, which serves as the currency for gas fees on the network and is also used for staking rewards, has seen strong demand over time as this growth has materialized.

Overall, investing in Polygon is akin to making a bet that the Ethereum network will continue to grow, and layer-2 platforms will continue to be needed. I’m of the view that this is the case, and Polygon is on my watch list now.

Dogecoin (DOGE-USD)

A close-up shot of a Shiba Inu with a grinning face representing Dogecoin.
Source: Wollertz / Shutterstock

I’m going to start out with the fact that I’m still bearish on Dogecoin (DOGE-USD). This meme token surged to popularity following a series of tweets from enigmatic CEO Elon Musk, which have continued to this day.

So, why put Dogecoin on this list?

Well, for one, Dogecoin’s size and scale is truly impressive. As far as cryptocurrencies with dedicated and passionate communities are concerned, this is among the top cryptocurrencies out there. Who knows – we may be entering into a so-called “meme economy,” where branding and celebrity associations are more important than anything else.

In order for a cryptocurrency to gain traction as a true payment method, a very large number of people need to use said token. In this regard, it appears Dogecoin’s massive community could come in handy.

Sure, plenty of work needs to be done to prove that crypto can be used (effectively) for this purpose. However, given Dogecoin’s relatively low cost, which is around $0.09 apiece, it’s possible that such a use case could come to fruition.

For speculators or those looking to value tokens based on their community size, there is something to be said about this dog-inspired meme token. It’s one that’s certainly among the highest-risk options in this space. That said, for those looking to trade this momentum rally in the near-term, there are few better cryptos to buy, as far as speculative picks are concerned.

On the date of publication, Chris MacDonald has a position in SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/04/3-cryptos-to-buy-to-play-the-market-momentum-rally/.

©2024 InvestorPlace Media, LLC