Altcoins
These 3 Altcoins Could Rise: Are They Safe Investments?
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Bitcoin surpassed its previous November 2021 all-time high of $69,044.77 earlier this month. Although the asset is now experiences huge volatility ahead of the so-called halving next month, many experts predict it will hit $100,000 this year.
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As of March 20, Bitcoin stood at $63,655, up 128% over the past year, 44% year-to-date, and 22% in the past month.
Today, the cryptocurrency bull run is generating a lot of interest in altcoins, with investors looking for the next big thing. But it remains to be seen whether Bitcoin’s rise will translate into a sustained rise in these small coins.
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Altcoins hitting the investment radar
Richard Gardner, CEO of Moduleargued that altcoins are a lot like microcap stocks.
“There will be winners who will completely transform industries,” he said. “There will be others who will continue to trudge forward. And many of them will eventually collapse.
According to Gardner, the problem with the term altcoin is that it doesn’t differentiate between coins with large market caps, like Cardano and Solana, and those that are nothing more than what he considers “scams.” .
“The best way to determine if an altcoin is trustworthy is to look at the technical details. Determine if the altcoin has real-world applications. It is important to do due diligence,” he added.
Which ones could experience a surge?
Solana SOL Token
In the current cycle, SOL has benefited the most from the rise in the price of Bitcoin, which suggests that SOL will be the darling of this cycle just as ETH was the darling of the previous one, according to Frank Corva, digital assets analyst for Searcher.
And other experts, like Brian D. Evans, CEO and founder of BDE Ventures – echoed this sentiment, saying that Solana is getting a lot of attention from the general public, especially since the Solana blockchain is successful and a large number of users and applications gravitate to it.
“This should be beneficial for the Solana network’s native token, SOL,” Evans said. “The more users interact with apps on Solana, the more SOL they will need to purchase to pay gas fees. I suspect that over time SOL will increase in value as this dynamic continues to play out.
The story continues
Ethereum (ETH)
Jeff Owens, co-founder of Havre1argued that as the foundational layer of the Web3 space, Ethereum is an “obvious choice” – especially for retail investors just getting acquainted with crypto.
“It typically moves in tandem with Bitcoin and has marked gains of over 70% this month from its opening price for 2024,” Owens said. “Combined with the Dencun upgrade, which successfully deployed last week and reduced Ethereum’s Layer 2 gas fees by 10 to 100 times, these numbers suggest that ETH could soon start to outperform BTC.”
AI tokens
Artificial intelligence tokens have also been riding the broader AI wave in recent times and have attracted a lot of interest. As CoinGecko reported, these tokens are cryptocurrencies that power AI-related projects. Their market capitalization as of March 20 stood at $24 billion, according to CoinGecko data, a significant increase from just $2.7 billion last April, according to Reuters.
“I think anything related to AI will continue to work well because of the growing need to verify data, including authenticity and provenance,” said Markus Levin, co-founder of XYO Network. “This includes Oracle networks like ours, XYO and others, because these types of networks can provide clean, verified data to all kinds of systems.”
Some of the top AI coins by market cap include Render’s RNDR token, which is up 709% over the past year and 86.4% in the past month. Additionally, Fetch.ai’s FET has increased by 568% over the past year and 196.2% in the past month.
Are these crypto investments safe?
While it may be tempting to quickly jump into this crypto adventure, due diligence and caution are essential.
There will likely be more investors jumping into new, untested altcoins without doing due diligence first, and many of these investors could be new entrants to the crypto space.
“And so, while we will undoubtedly see the creation of new crypto-millionaires overnight, we will also likely see some spectacular losses,” said Owens of Haven1. “The bull run is always accompanied by a proliferation of new projects, making it a particularly risky time to look for quick money. So, as altcoin season begins in earnest, it is more important than ever to accelerate research and never invest in a project if something doesn’t work.
And for Bitcoin purists, the asset is the only way to go, as they argue that it is the safest investment in the crypto space.
“This is the asset that investors – especially new investors – should stick to,” said Finder’s Corva, noting that its scarcity makes it different from any other asset.
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This article was originally published on GOBankingRates.com: Beyond Bitcoin: These 3 Altcoins Could Rise: Are They Safe Investments?