Despite its volatility, cryptocurrency investment remains widespread.
The Crypto Wealth Report by Henley & Partners reveals that 425 million people globally invest in crypto, with over half of Gen Z including it in their portfolios. The report identifies 88,200 individuals worldwide with crypto assets exceeding $1 million, but only 22 are billionaires in the crypto realm.
The global crypto market is valued at approximately $1.18 trillion, with Singapore leading in the number of cryptocurrency investors, while the U.S. ranks fifth.
Researching numerous crypto projects can be time-consuming, but I’ve narrowed down three undervalued cryptos for your consideration this September. Size is often associated with quality in the world of equities. This holds true in the crypto sector as well.
Accordingly, these three top-tier projects are among the largest and most stable in the space.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) has plenty of potential in September, driven by the prospect of Bitcoin ETF approvals. While past Septembers were not Bitcoin-friendly, this year’s outlook is different.
The tide is turning with court challenges to previous denials and scrutiny of SEC decisions. Notably, BlackRock‘s unexpected court ruling on its prospective Bitcoin ETF proposal adds optimism to this emerging asset class.
Bitcoin has surged 58% this year, sparking high investor enthusiasm. Past rate hikes and the events of 2022 add to optimism. The $30,000 mark is a crucial point of discussion, and a strong push beyond it could drive Bitcoin to new highs, shaping a bullish pattern in the market.
Bitcoin faces its halving event in just over six months, a crucial point in its price cycle. Analysts believe it acts as a catalyst for new all-time highs. BitQuant is even more optimistic, predicting Bitcoin will surpass its 2021 record before April and reach $250,000 per coin in the next halving cycle.
Ethereum (ETH-USD)
Ethereum (ETH-USD) is a lot more than Bitcoin’s shadow.
It boasts quick transactions, innovative smart contracts, and a move to eco-friendly proof-of-stake. With significant progress on recent upgrades, the growth prospects with this network are substantial.
The eight-year-old leader in Layer-1 blockchains, Ethereum surpasses its rivals, partly due to its expansive network and pioneering role in smart contracts and Decentralized finance (DeFi). Investing in Ethereum means investing in innovation with its track record of improvements. Recent upgrades indicate ETH’s ongoing potential.
Additionally, Ethereum co-founder Joseph Lubin remains optimistic amid SEC disputes, expecting a resolution as seen with past tech innovations like the internet. ConsenSys CEO Lubin believes that decentralized protocols and cryptocurrencies align with U.S. philosophies, expecting global alignment.
Other crypto firms face lawsuits, but with the SEC losing recent battles, the hope is that the entire sector could be boosted higher. In turn, that would certainly flow through to valuation growth for world-class cryptos like Ethereum.
Avalanche (AVAX-USD)
Avalanche’s (AVAX-USD) remarkable transaction speed and scalability are drawing DeFi projects. Avalanche stands out with partnerships, innovation, and increased user engagement, reflecting its potential for mainstream adoption. Collaboration with other protocols fuels interest and trading volume speculation.
Avalanche offers potential for both short-term traders and long-term investors. Caution is advised until a breakout above August 2022’s high. Set clear profit targets and stick to your trading plan. Predicting market tops is challenging. Avalanche’s future relies on breaking key resistance levels, so prudent strategies are essential.
Avalanche’s DeFi stats are mixed, but the project does invest in asset tokenization, hinting at its growth potential. Avalanche competes with Ethereum due to its speed and scalability, but finding a true Ethereum alternative is still challenging. I’d think about looking at both cryptos as ways to diversify exposure to the growth in DeFi over the long-term.
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
