Investors often flock to an asset class after a major rally, leading to potential losses as prices correct. However, now may be an opportune time to build a cryptocurrency portfolio. While Bitcoin (BTC-USD) has experienced significant gains this year, it is still below its all-time highs. Other cryptocurrencies that have lagged behind could see substantial growth if the Bitcoin rally continues.
This article highlights three cryptocurrencies with the potential to deliver significant returns. While the crypto rally could be powerful, investors should always do their own research before investing in any asset.
Solana (SOL-USD)
Solana (SOL-USD) has experienced a significant price surge in the past month, increasing by over 45%. Its bullish momentum is expected to continue in July due to its reputation as a high-performance blockchain with a growing ecosystem. With the ability to process 50,000 transactions per second and low transaction fees, Solana is a favorable choice for decentralized applications (dApps) requiring high throughput.
Solana’s adoption by institutions, including its comparison to the “Visa of the digital asset ecosystem,” adds to its growth potential. While there is a prediction of a 16% gain to $25.43, it’s essential to consider the volatile nature of the cryptocurrency market and the presence of unpredictable factors.
Moreover, SOL is often referred to as an “Ethereum killer” and is projected to experience significant growth by 2025. With its low fees, scalability, and interoperability, Solana has gained prominence in the DeFi and non-fungible token markets. The platform’s focus on stability improvements and its growing ecosystem, demonstrated by the migration of Helium, is attracting developers and expanding its market share.
Ethereum (ETH-USD)
Ethereum (ETH-USD) has significantly impacted tokenization, bringing tangible assets onto the blockchain. Industry leaders, including BlackRock’s CEO, recognize the potential of this transformation. With a strong performance this year, Ethereum offers investors an enticing opportunity. However, the crypto market remains unpredictable, and competition from platforms like Solana challenges Ethereum’s dominance.
Ethereum’s pioneering role in smart contracts is crucial. While there are other smart contract technologies, Ethereum’s first-mover advantage has attracted a large developer community, giving it a significant lead over competitors. The high switching costs make it unlikely for other platforms to achieve mass adoption in the smart contract space.
One reason for optimism is Ethereum’s ongoing developments, including the transition from proof-of-work to proof-of-stake, which is expected to drastically reduce energy consumption. This positions Ethereum favorably in the face of energy regulations.
Avalanche (AVAX-USD)
Avalanche (AVAX-USD) is gaining attention not just as a speculative asset but as a pioneering blockchain platform. Its focus on scalability and speed makes it well-suited for the demanding DeFi sector. The platform has experienced increased transaction activity and user growth, likely influenced by its partnership with Amazon Web Services. With advanced security measures and innovative subnets, Avalanche caters to both public and private blockchains. After a successful rebound from the 2022 bear market, Avalanche showcases its resilience and potential. It could be the promising future that crypto enthusiasts have been seeking.
Moreover, Avalanche stands out for its network speed, processing over 4,500 transactions per second (TPS), surpassing Bitcoin and Ethereum. Its compatibility with the Ethereum Virtual Machine attracts developers seeking a faster and cost-effective blockchain solution.
At the moment, Avalanche is priced at $15.01, showing a 0.55% increase in the past 24 hours. It holds the #14 ranking on CoinMarketCap, with a live market cap of $5.193 billion. The circulating supply of AVAX coins is 345,851,337 out of a maximum supply of 720,000,000 coins. The 24-hour trading volume stands at $258.411 million.
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.
