Muslim Farooque
·4 min read
Multibagger cryptos can be tricky to pick. The crypto market has undergone multiple shakeups this year. The market capitalization for cryptos plummeted over 50% in value in 2022, significantly worse than the stock market, which went through its blip this year.
However, things look far gloomier than they actually are since it provides several opportunities to buy cryptos at bargain prices. The volatility that characterizes the crypto market is mighty discouraging, but the long-term prospects of the crypto space are promising. Hence, it’s an ideal time for investors to wager on multibagger cryptos.
The growing interest evidences the incredible long-term bull case for crypto from traditional financial institutions, multinational corporations, and other entities in recent years.
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These entities actively invest in improving blockchain infrastructure and developing solutions to increase scalability and security. This faith from industry players implies a bright future for the crypto market.
As we advance, it will continue to be an important asset class for investors who understand the underlying dynamics driving its price movement.
Bitcoin | $16,990.60 | |
Ethereum | $1,272.11 | |
Solana | $13.41 |
Bitcoin(BTC)
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Since Bitcoin(BTC-USD) emerged on the scene more than a decade ago, it has been the gold standard for digital currencies. Bitcoin’s emergence as an investment vehicle is remarkable; many institutional investors have embraced BTC with open arms and are investing significant amounts into it.
Additionally, several Bitcoin-linked exchange-traded funds have popped up over the past couple of years, pointing to its massive support and long-term growth runway.
Bitcoin’s rapid ascent to record levels in late November 2021 created outsized expectations among investors. However, the following crypto winter resulted in a major sell-off in BTC prices.
Nevertheless, with the upcoming Bitcoin “halving” event, a remarkable, bullish catalyst awaits that could send prices soaring again. Thus, when the halving event kicks off in 2024 and supply continues to dwindle, it looks quite likely that Bitcoin will experience another surge in prices. All signs point to BTC staging a major rebound and leading the multibagger cryptos in the coming years.
Ethereum(ETH)
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Ethereum(ETH-USD) has made its mark on the blockchain sphere and is the most popular real-world utility, powering many lucrative applications. It recently took a huge leap forward as it officially transitioned to a proof-of-stake mechanism via “The Merge.”
The successful implementation of the new consensus protocol solidifies ETH’s lead in the sector, taking its speed, security and scalability to new heights. Once the merge is complete with three upcoming updates, it could potentially deliver a throughput of roughly one million transactions per second.
As Vitalik Buterin pointed out in July, it is more like the halfway point for the platform. He noted that further progress toward scalability and cost-effectiveness was still necessary for Ethereum to flourish and gain further market share in the sector. Hence, with multiple catalysts in motion and robust utility, ETH prices should soar to new heights.
Solana(SOL)
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Solana(SOL-USD)is a top purpose-built blockchain network that has gained immense traction as a scalable alternative to Ethereum. It is often known as an “Ethereum Killer” as it continues to challenge the stalwart with its speed and efficiency.
Solana’s fee structure is significantly cheaper than Ethereum’s, which charges 9 cents per transaction, whereas Solana charges fractions of a ten-thousandth of a cent per transaction. Moreover, Solana can confirm 3,400 transactions per second, compared to Ethereum’s 15.
The blockchain’s success has been particularly noticed in the non-fungible token (NFT) market. The combination of speed and low fees make it a favorite choice for those looking to create or invest in NFTs, opening up new opportunities in the space that wasn’t possible before.
Consequently, in the second quarter, Solana outperformed Ethereum in daily transactions. It hit a whopping 40 million transaction volume compared to Ethereum’s one million.
On the date of publication, Muslim Farooque held a LONG position in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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