The news of the FTX collapse caused the crypto market to lose billions in value in late 2022, which left the crypto market in 2023 with room to rebound.
Bitcoin (BTC-USD) and other cryptocurrencies have had massive growth since the beginning of the year due to several factors, including rising interest rates, the weakening of the U.S. dollar, the lack of trust in the regional banking system following the collapse of various banks, and the fear of a possible recession.
Bitcoin has increased by 65% year to date and shows no sign of stopping. Below are three cryptocurrencies to consider adding to your portfolio now.
| SOL-USD | Solana | $21.36 |
| AVAX-USD | Avalanche | $16.98 |
| INJ-USD | Injective | $6.70 |
Solana (SOL-USD)
Solana (SOL-USD) is the native cryptocurrency of the Solana blockchain. Solana has a nearly $9 billion market capitalization and doesn’t have a hard stop on the number of tokens that can be produced. The Solana blockchain uses the proof-of-history consensus model that ensures historical data is valid, which is an extremely fast way of processing transactions for the blockchain.
Solana can perform upwards of 50,000 transactions per second compared to Ethereum (ETH-USD), which only does about 30 transactions. The two blockchains don’t even compare when it comes to speed. And Solana also has extremely cheap transaction fees at fractions of a penny per transaction.
Solana is at a relatively low price compared to its overall value. This could be a great buying opportunity because it is one of the fastest blockchains, and its smart contract is used for DeFi and non-fungible tokens (NFTs). But, a lingering question regarding Solana’s overall viability is that the network faces frequent outages and developers are often unsure of the actual cause.
Avalanche (AVAX-USD)
Avalanche (AVAX-USD) is an integrated blockchain platform with just over a $6 billion market cap. Avalanche uses a similar consensus model to proof-of-stake for blockchain transactions. Regarding the possibility of a network attack, it is considerably more secure than other cryptocurrencies, such as Bitcoin and Ethereum. Avalanche has a unique addition called subnets which, among other things, allows for the creation of private or public blockchains using the Avalanche network for various uses.
AVAX is the native token of the Avalanche network. It is a deflationary currency with a cap of 720 million tokens. In addition, avalanche launched an incentive program of $180 million to increase interest in its smart contract platform.
A recent network upgrade led to a spike in the price for AVAX. Growing investor sentiment and increased development activity continue to push the price higher.
Injective (INJ-USD)
Injective (INJ-USD) is the native token of the Injective Protocol, launched in 2020 with a nearly $700 million market cap. Injective is an independent blockchain that uses a decentralized exchange to trade derivatives such as futures contracts and cross-chain margin trading.
INJ has seen a massive rally since the beginning of the year, going from just over $1 in January to over $9 in mid-April. In April, Injective announced its collaboration with Tencent (OTCMKTS:TCEHY), a Chinese tech company, hoping to improve the Injective ecosystem.
Large holders of INJ may be reaching a break-even point soon following a huge rally, which may lead to a correction. Still, the overall Injective Protocol holds a positive social sentiment and interest based on its decentralized derivatives trading platform.
On the date of publication, Noah Bolton 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.
