An impressive rally in growth stocks and other risk assets have mesmerized some investors.
Amid the sea of high-growth stocks, high-flying cryptos are grabbing attention. The more speculative the asset class, the better performance. Indeed, those who have taken on more risk in recent months have been well-rewarded, leading to some serious fear of missing out (FOMO) for many investors.
Now, for those taking a truly long-term view to growth assets, cryptocurrencies may be a decent place to build positions. For every crypto stalwart, dozens of scams or projects headed to zero have popped up. The risk in this space is notable and shouldn’t be taken lightly.
Keep this in mind as you consider these three high-flying cryptos that may be worth a look on any dips.
Aptos (APT-USD)
Aptos (APT-USD) stands out with its divergent price trend compared to major cryptocurrencies. While Bitcoin (BTC-USD) has seen significant gains in recent months, APT experienced a decline, making it an attractive option for investors seeking undervalued growth. Despite encountering resistance, Aptos shows potential in the Web3 and DeFi sectors, attracting attention from developers in the crypto space.
Indeed, despite the overall uncertainty in the industry, Aptos investors find solace in the protocol’s strong fundamentals. Developers have been focused on enhancing security and scalability, distinguishing Aptos from other Layer 1 protocols. The automatic release of new tokens from the blockchain network, based on predetermined plans, could impact the value of APT and the market as a whole.
With a market capitalization of a little more than $1.6 billion, APT has the potential to outperform giants like Bitcoin and the broader market. At least, that’s the thesis many long-term bulls on Web3 and DeFi hold.
Solana (SOL-USD)
Solana (SOL-USD) has emerged as a strong contender in the Web3 blockchain space, positioning itself as a potential rival to Ethereum (ETH-USD).
With its focus on stability and addressing concerns, Solana offers low fees, scalability, and interoperability, making it a key player in the DeFi sector. It is gaining momentum in the non-fungible token market and attracting developers to its platform. Solana’s dedication to stability enhancements and expanding its market share further solidifies its position as a prominent blockchain platform.
Solana is a high-performance blockchain known for its fast transaction processing speed of 50,000 transactions per second and low transaction fees. Its expanding ecosystem and affordability for dApps make it a favorable choice. The increasing institutional adoption of Solana adds to its growth potential and credibility as a blockchain platform with the potential for widespread acceptance.
Bitcoin (BTC-USD)
Bitcoin clearly needs no introduction. It ought to be included on any list of potential long-term holdings when it comes to high-flying cryptos.
Notably, Bitcoin remains the top cryptocurrency in the world, and also the first. Created by the enigmatic Satoshi Nakamoto, Bitcoin introduced the concept of blockchain technology, which serves as the foundation for cryptocurrencies.
Nakamoto’s white paper outlined a peer-to-peer network that addressed the issue of double spending and established an immutable distributed ledger system. This groundbreaking technology offers the potential to decentralize monetary control, representing a remarkable achievement in finance.
Several bullish factors support a strong outlook for Bitcoin.
A dovish Federal Reserve, which could weaken the dollar, is favorable for Bitcoin and other risky assets. The upcoming Bitcoin halving in 2024 historically precedes price rallies in the following year and potentially beyond. Additionally, the increasing adoption of cryptocurrencies contributes to the bullish case, with predictions of over one billion cryptocurrency holders by 2025. The limited supply of Bitcoin further strengthens its potential for price appreciation.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Chris MacDonald has a LONG position in SOL, ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
