The crypto market is notorious for its instability and unpredictability, yet it also offers opportunities for substantial profits. As Bitcoin (BTC-USD) and other cryptocurrencies have recently surged in value, investors are speculating whether it marks the beginning of another bullish trend.
Of course, just because Bitcoin is on the rise doesn’t mean the rest of the market will follow suit. I’m not saying that at all. However, the leadership from the following three tokens (which happen to be deeply involved in decentralized finance) could be a big catalyst for the sector. If the market is running, so will these top ideas.
This May 2023, I’m keeping an eye on three tokens in particular. Here’s why these are the three best ways (in my view) to play a potential crypto market bull run.
If you’re looking for a cryptocurrency with a good balance between risk and reward, Ethereum (ETH-USD) may be the best choice. It is a blockchain technology with many practical uses, leading to the development of Web3. Ethereum’s blockchain is also home to some of the top crypto metaverse projects and smart contract-based tokens like NFTs. Additionally, regular upgrades are made to the blockchain to enhance its speed and scalability.
Roll-ups, a scaling solution, are expected to enhance the Ethereum network, resulting in faster transactions and lower end-user fees. The proto-dank sharding upgrade is currently being tested and expected to be launched in H2 2023, possibly reducing transaction costs by 40- to 100 times compared to regular Ethereum transactions. As a result, it could be possible to pay less than one-tenth of a cent for an Ethereum transaction in the future.
The recent Shanghai fork has given Ethereum a boost, paving the way for a promising future for ETH holders. With the addition of a burn mechanism and rising active addresses, Ethereum’s price potential has not yet been fully realized. Even without the burn mechanism, Ethereum’s price almost reached $4,900 under the former proof-of-work method. As Ethereum takes advantage of its deflationary features, its future looks bright.
Polkadot (DOT-USD) is a crypto that connects multiple blockchains, forming a decentralized and interconnected ecosystem. The Web3 Foundation supports and funds the development of Polkadot, promoting collaboration between blockchain-based technologies and decentralizing ownership.
Polkadot’s ability to connect blockchains seamlessly has led to the development of around 550 projects. This innovation allows developers to create applications that interact with multiple blockchains. The XCM communication standard, which supports Polkadot’s interconnection efforts, was recently upgraded to version 3, enhancing the ecosystem’s decentralization and resilience.
Polkadot’s potential for scalability and growth makes it a step forward for blockchain technology. The release of a roadmap for scalability, parachain development, and cross-chain communication has increased its value and growth potential. Polkadot’s interactivity and the ability to link and create blockchains attract investors and developers alike. Its affordability, compared to Bitcoin and Ethereum, is also an enticing factor for investors.
Polygon (MATIC-USD) is a valuable solution due to Ethereum’s slow speeds. It’s a Layer 2 scaling solution, which means it operates on top of Layer 1 blockchains like Bitcoin and Ethereum.
Polygon’s theoretical TPS is as high as 65,000 transactions per second, making it a useful Ethereum processor due to Ethereum’s slow transaction speeds. As Ethereum is likely to remain dominant and slow for the foreseeable future, Polygon’s relevance is expected to persist.
MATIC, the native token of Polygon Network, has been declining alongside other altcoins in recent weeks due to negative market sentiment, despite the network’s reputation as a top player in the blockchain industry.
If the current bearish trend continues, the bears could break the next support and reach the last one at $0.51. Conversely, if the bull regains control, MATIC may reach the significant resistance level at $1.1900.
On the date of publication, Chris MacDonald has a position in ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.