Investing in cryptocurrencies is gaining traction, but their volatility demands thorough research. With thousands to choose from, starting with the top ten by market capitalization, which includes established and recognizable projects, is a wise approach. This methodology may lead to the discovery of cryptos to buy.
One strategy that can guide investors in their research is to begin by examining the top cryptocurrencies by market capitalization. Focusing on these currencies provides an overview of projects that have garnered significant attention, trust, and investment from the global community.
These three cryptocurrencies offer relative stability and a history of strong performance in the past two months.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) leads the crypto market, transitioning from insignificance to high value, akin to early banking concepts. It stands as a pioneering and enduring crypto investment, with a remarkable journey to its all-time high of $68,789. In the evolving crypto infrastructure, Bitcoin remains a shining digital gold.
The quest for Bitcoin ETFs isn’t new; previous proposals faced denials. Yet, recent developments suggest a shift toward approval. Court rulings against denials are contested, and the SEC’s decisions are scrutinized. Unexpectedly, BlackRock proposed a Bitcoin ETF this summer, bolstering its prospects and the asset class. All in all, it’s one of those cryptos to buy.
This momentum could significantly boost the crypto industry, fostering optimism for digital currencies to integrate smoothly into regulated financial systems. Improved regulatory clarity will enhance Bitcoin’s appeal, particularly to stability-seeking institutional giants.
Solana (SOL-USD)
Solana (SOL-USD) made headlines in 2021, surging over 700% to an all-time high of $260 in November, thanks to its high-speed proof of history technology. However, like many, it faced a sharp decline in late 2021 and early 2022, dropping over 90% from its peak.
SOL faced heavy selling as FTX’s digital assets, including 55.75 million SOL valued at $1.062 billion, were approved for sale by the Delaware Bankruptcy Court. However, the unlock schedule and derivatives market positioning hint at a potential upside move. SOL hit a weekly low of $17.96 after Judge John Dorsey’s decision on Sept. 13 but rebounded by around 4% on Sept. 14. Crypto trader MartyParty believes the selling pressure is exaggerated since most of FTX’s SOL stake vests between 2025 and 2027.
Despite regulatory hurdles, Solana’s cryptocurrency surpasses June highs, showcasing DeFi resilience. TVL in Solana’s DeFi smart contracts hit $1.1 billion, the highest since November 2022 (DeFi Llama). This makes it one of those cryptos to buy or at least one investors should be watching closely.
Polygon (MATIC-USD)
Polygon (MATIC-USD) acts like a new, efficient road compared to other blockchains, providing faster and cheaper transactions. Its “Layer 2” solution handles numerous transactions concurrently, benefiting large corporations and investors, and reducing operational expenses.
Polygon’s Ethereum (ETH-USD) interoperability offers faster, cost-effective transactions, streamlining asset transfers across blockchains. Zero-knowledge EVM roll-ups improve efficiency, aligning with Ethereum. Amid Ethereum’s congestion, MATIC presents a strategic move for scalability.
The Ethereum synergy lets enterprises access its ecosystem while benefiting from Polygon’s scalability. Polygon ID simplifies development, enhancing its appeal. Web 3 gaming firms have shown a growing interest in Polygon, hinting at potential future developments in the crypto space.
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.
