Prices for several cryptocurrencies skyrocketed during the third quarter due to growth in non-fungible tokens and decentralized finance, and investors are eager for the next breakout as the fourth quarter begins.
The global cryptocurrency market is once again approaching $2 trillion, as prices for Cardano’s ada, solana, and other altcoins have skyrocketed, with Cardano ada being the third most-traded cryptocurrency.
In the next months, investors will focus on the benefits and drawbacks of recent speed and efficiency upgrades on main altcoin blockchain networks, according to Ed Moya, the senior currency analyst at Oanda.
“Everyone has been focusing on which altcoins would answer the scalability challenge that you have with ethereum and bitcoin,” he explained.
“People need to understand which businesses are going to be the leaders in NFTs or smart contracts,” he stated. “That, I believe, is where the market is, and education takes time. Consolidation is on the horizon for the industry.”
Here are six altcoins (in alphabetical order) that experts say they’ll be keeping an eye on in the fourth quarter and beyond:
1) Avalanche (AVAX)
Year-to-date performance is up 1954% at $65.94.
Ava Labs’ blockchain is a smart contracts platform for decentralized applications, and its AVAX token began trading on Coinbase Pro this week.
Tally Greenberg, head of business development at Allnodes, told Insider that Avalanche “is significantly faster than ethereum and it aspires to be even faster, which is excellent because I think it’s very crucial when it comes to finance and DeFi projects and apps.”
“It’s a promising technology that basically accomplishes more for less,” she said, adding that it used a proof-of-stake system that is more energy-efficient than a mining-based proof-of-work system.
Insider spoke with Steve Ehrlich, founder, and CEO of cryptocurrency asset broker Voyager Digital, who believes Avalanche is a viable alternative to ethereum. “As soon as they start adding some projects and art to their NFT network,” he said, “you’ll start to see a lot more people purchasing and selling NFTs” on Avalanche.
Ehrlich claims that Avalanche, as well as Solana and Cardano, are less expensive alternatives to ethereum, which has significant transaction costs.
2) Boost Coin
Market capitalization after full dilution: $53 million
Year to date performance: 293 percent higher at $0.0505
Boost Coin, which was launched in August, supports the Boost ecosystem, which is based on decentralized finance products. The first tool is Boost Swap, a decentralized exchange that, according to the startup behind it, is similar to crypto exchanges Uniswap, SushiSwap, and PancakeSwap.
DEXs, or decentralized exchanges, provide a peer-to-peer platform where parties use smart contracts to perform deals without than relying on intermediaries like clearinghouses.
“There’s a lot of value in the exchanges industry,” Dr. Don Basile, CEO of Monsoon Blockchain, told Insider, citing Coinbase’s trading debut this year, now a $48 billion centralized crypto exchange.
He called Boost’s method to connect customers and merchants without a centralized institution a “potentially disruptive idea.”
Boost can be obtained by swapping it for ethereum using Uniswap or Boost Swap. However, Basile believes it is too early to tell whether the coin’s price is low or overvalued because the coin is just a few weeks old.
Meanwhile, Basile is the originator of Bitcoin Latinum, which is set to begin trading the week of October 21. The energy-efficient cryptocurrency aims to provide faster transaction speeds and cheaper transaction costs to high-growth areas such as media and gaming.
3) Cardano ada
Market Capitalization: $69.3 billion
Year-to-date performance: 1092 percent higher at $2.16.
Cardano’s and its ada token’s popularity has skyrocketed in recent months. Last month, the network launched its alonzo upgrade, which added smart contract capacity to its network, potentially increasing its competitiveness with ethereum.
“A lot of our customers hold a lot of cardano on our platform, so we see a lot of people becoming interested,” Ehrlich said of the network.
And, having lately been exposed to “some really great” art produced on Cardano, he believes the network will soon make inroads into the NFT area.
Moya believes that after Cardano ada’s price increased to $3, investors are divided. “There are still a lot of institutional investors that are looking it as an intriguing cryptocurrency to hold,” he continued.
4) Crypto.com Coin CRO
Market Capitalization: $4.2 billion
Year-to-date performance: Up 183% at $0.16531
Crypto.com is a cryptocurrency exchange and consumer financial services company, and Coin is the token for Crypto.com’s Chain, a decentralized open-source blockchain that was released in March.
Greenberg believes CRO is undervalued and that it is utilized for staking, payments, and settlements.
“It’s in use on a daily basis,” she said, referring to Crypto.com’s prepaid Visa card and the Chain network, which has a sustainability objective of becoming carbon negative by next year.
Market Capitalization: $27.3 billion
Year-to-date performance: Up 4307% at $0.2064
Moya at Oanda has put the immensely popular meme coin on his watch list to see whether it falls, which he believes would be a good indication.
“There are too many coins that don’t have the money or the infrastructure to be a credible investment,” he said. “It’s difficult to transition from a meme coin to a genuine coin.”
Elon Musk, CEO of Tesla, backed billionaire investor Mark Cuban’s claim that dogecoin is the most powerful cryptocurrency as a means of exchange in August. The Dallas Mavericks, Cuban’s NBA team, accepts dogecoin as payment.
6) Polygon (previously MATIC)
Market Capitalization: $7.6 billion
Year-to-date performance: Down 27% at $1.236
Polygon is intended to scale ethereum chains and build the blockchain infrastructure. It has piqued the interest of Mark Cuban, who added the platform to his investment portfolio earlier this year.
Polygon, formerly known as Matic, produced the Matic token, which is utilized in network transactions. Matic is also one of the roughly 40 altcoins on Allnodes’ Greenberg’s watch list. Matic is inexpensive in her opinion since it has low network fees and just enough volatility to benefit trading.
“There is a staking potential for individuals looking for a less aggressive investment plan. As a result, it is a well-rounded blockchain and cryptocurrency.”
Polygon employs the proof-of-stake technique for securing a cryptocurrency network, in which users “stake” some of their currencies in exchange for the chance to verify transactions and earn more coins. Greenberg claims that users can now earn an annual return of 13.65% on their investments, which he describes as “massive.”