As investors explore the world of digital currencies, they seek the best long-term cryptocurrencies with significant potential beyond the hype. Thorough research on their technology, value and performance in the market is essential to find hidden gems.
Cryptocurrencies have outperformed many other sectors this year, with Bitcoin (BTC-USD) surging by 75% in 2023, compared to 35% for the Nasdaq and 19% for the S&P 500. Several other digital coins have also seen significant gains, marking a sharp reversal from last year’s decline. While the market isn’t at the frenzy levels of the past, it is in a growth mode, with forecasts pointing to further gains in the coming months.
Here are three promising diversification cryptos worth considering, as I think they’re poised for long-term growth.
Bitcoin (BTC-USD)
Bitcoin, the original cryptocurrency, maintains its leading position as the largest and most widely held digital asset, gaining 75% year-to-date (YTD) and more than 80% from last year’s low. Though its price temporarily slipped, the long-term trend for BTC remains promising.
Moreover, Bitcoin’s unique characteristics, including its finite supply and consistent transaction count, contribute to its stability and distinguish it from other major cryptocurrencies. When considering portfolio diversification, keep in mind Bitcoin’s enduring resilience and widespread acceptance, making it one of the stable cryptocurrencies worth considering.
BTC continues to attract both retail and institutional investors seeking less volatile assets and its upcoming halving in 2024 suggests a potential rally. As a resilient titan in the crypto market, betting on Bitcoin positions you with a steadfast contender for significant profits.
Avalanche (AVAX)
Avalanche’s (AVAX-USD) blockchain performance in Q2 2023 is a mixed bag. Daily active addresses have more than doubled since the beginning of the year, indicating a positive trend and potential recovery from 2022’s challenges.
Avalanche’s decentralized finance (DeFi) metrics show mixed results for Q2 2023. While daily active addresses have doubled, DeFi-related metrics, like Total Value Locked (TVL), have declined by 19% for the quarter, raising concerns. TVL is now 90% below its all-time high, despite Avalanche’s initial promise as a fast and scalable DeFi blockchain. Nonetheless, Avalanche remains a significant player in the asset tokenization trend, a $16 trillion market opportunity according to BCG, also noted by BlackRock.
I’m closely monitoring future developments in this area as Avalanche initiates a $50 million program to acquire tokenized assets on its blockchain, aiming to promote adoption of this trend. With potential for more asset tokenization opportunities, this undervalued crypto might be worth considering for your portfolio.
Fetch.ai (FET)
Fetch.ai (FET-USD) is an AI-powered decentralized network enabling transactions between economic agents, with applications in smart cities, supply chain management and decentralized finance.
FET is the native currency of Fetch.ai, fueling its economy and services. Users spend FET to access platform services and can stake it for governance influence and earn 10% annual interest. Staking FET is required for deploying digital twins to prevent spam and malicious agents.
As investor interest in AI-driven tech rises, Fetch.ai’s FET token has surged 90% in the last month, trading at 43 cents with a market cap of $356 million, ranking as the 113th most valuable cryptocurrency. Fetch.ai’s recent collaboration, peaq, is introducing multi-chain Machine identities. By leveraging Fetch’s AI agents, it enables data transfers between Polkadot (DOT-USD) and Cosmos (ATOM-USD) ecosystems, seamlessly connecting robots and vehicles on peaq’s decentralized infrastructure networks with machines across the other ecosystems.
On the date of publication, Chris MacDonald 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.
