The meltdown in crypto markets continues to spook investors. Risk appetite is the lowest it’s been in years; couple that up with the strengthening U.S. dollar, and you have a recipe for disaster. Moreover, central banks worldwide have turned hawkish to counter the inflationary pressures. However, the step-changes in the crypto sphere in the past couple of years are permanent. The current downturn means there are multiple cryptos trading at a discount that offer incredible long-term use-cases.
The crypto market has gone through multiple bullish and bearish cycles in its relatively nascent history. Its volatility is scary, but with smart money pouring into the sector and the private and public sectors embracing digital assets, it’s clear that cryptos are here to stay. Therefore, it’s imperative to go long on cryptos with the strongest bull-cases.
Ethereum (ETH-USD) is the second biggest cryptocurrency in terms of market valuation. More importantly, though, it’s the most popular cryptocurrency in terms of use-cases. Its users have had concerns over its sluggish transaction times, energy consumption, and high fees.
However, all that is likely to change as it transitions to a proof-of-stake (POS) mechanism that should help remedy many of its issues. It has already switched to a POS system on the Ropsten testnet, and a full transition could occur in August.
“The Merge” will facilitate a move towards a POS model, which could significantly improve transaction times and lower gas fees. It could potentially handle 100,000 transactions and a 98% reduction in energy consumption. These elements will likely supercharge its performance even more down the line and significantly add to its real-world utility.
Cardano (ADA-USD)
Cardano (
Source: Stanslavs / Shutterstock
Cardano (ADA-USD) is another fast-growing smart contract platform. It attracted a lot of criticism for being a slow mover but all that could change soon as it adds new tech upgrades. It adopts an evidence-based development process and is looking to address each issue systematically.
Cardano’s developers added smart contract functionality last year and are looking to deploy a “layer 2 scalability solution” called Hydra. The update could potentially increase processing speeds by over 1 million transactions per second.
With these additions, ADA will likely provide plenty of functionality for transaction services, decentralized banking and NFTs. Its founder Charles Hoskinson talked about how NFTs now account for roughly 40% of new activity happening on Cardano’s network.
Solana (SOL-USD)
Solana Coin (
Source: Rcc_Btn / Shutterstock.com
Solana (SOL-USD) is one of the most popular smart-contracts platforms, and it saw its value skyrocket last year. Its unique consensus mechanism supports scalable and efficient decentralized finance services and applications.
It operates on a POS mechanism that keeps throughput and fees low. In theory, it could handle approximately 50,000 transactions per second (TPS), costing just a fraction of a cent. In comparison, Ethereum can handle just around 14 TPS with an average fee currently close to $2.
Due to these unique features, Solana has become one of the most sought-after platforms for various crypto features. In terms of volume, its NFT marketplace recently crossed $2 billion in sales, giving Ethereum a run for its money. Moreover, it also ranks among the top five most popular DeFi platforms. These developments will likely kick-start another rally for SOL as markets start picking up again.
Bitcoin (BTC-USD)
Bitcoin (
Source: Sittipong Phokawattana / Shutterstock.com
Bitcoin (BTC-USD) is the beating heart of the crypto market. BTC has shed over 50% of its value year-to-date and continues to struggle in line with the broader markets.
However, its real-world utility and growing popularity with institutional investors and large-scale businesses make it an incredible long-term bet. It accounts for over 40% of the crypto market, and 67% of crypto investors in the U.S. hold BTC in their portfolios.
Bitcoin continues to attract smart money and interest from some of the largest companies in Tesla (NASDAQ:TSLA), PayPal (NASDAQ:PYPL), and Block (NYSE:SQ). Moreover, multiple exchange-traded funds have been linked to BTC as it continues to gain traction among a wider investor pool.
Additionally, with its supply limited to just 21 million coins, its finite nature has built its reputation as digital gold. According to a report from ARK Invest, a single BTC could be worth over $1.36 million by 2030, while its total market capitalization could grow over 25 times.
Dogecoin (DOGE-USD)
A close-up shot of a Shiba Inu with a grinning face.
Source: Wollertz / Shutterstock
Dogecoin (DOGE-USD) is a meme-inspired cryptocurrency that has succeeded in building a loyal following among the top crypto enthusiasts. It continues to interest maverick entrepreneurs such as Elon Musk and Mark Cuban. Moreover, being the O.G. in the meme tokens space, it is likely to be the top pick from the niche.
Dogecoin is essentially a peer-to-peer payment network that facilitates the transfer of value between two parties. It hit an all-time high last year, but since it’s been on a downward spiral. Naturally, the current market conditions aren’t conducive for such a speculative investment as DOGE-USD.
Nevertheless, it has built a massive social media following, and what it lacks in utility, it makes up for in brand value. Hence, it is built for the long haul despite what the skeptics may say about it.
Helium (HNT-USD)
The logo for the Helium (
Source: Shutterstock
Helium (HNT-USD) is a crypto project that has garnered massive attention in recent months. It is one of the top blockchain-based internet providers with a business model that aims to meet the demand for 5G.
With the proliferation of the internet of things (IoT) concept, there will be a need consistently for a reliable network. Helium’s business model enables users to create hotspots in their homes for lower costs effectively, and as a reward, hotspots mine its native token, HNT.
It currently supports over 500,000 hotspots across more than 150 nations. Moreover, it recently started a pilot program that provides the city of San Jose with IoT infrastructure. Also, it announced a partnership with Dish (NASDAQ:DISH) last year. Hence, the network is gaining strong traction in a very short space of time.
Enjin Coin (ENJ-USD)
Concept art for Enjin Coin (
Source: Shutterstock
Enjin Coin (ENJ-USD) is a metaverse gaming coin that works with various blockchain games. The company behind the crypto offers software development kits to develop digital assets, including in-game currencies and other special items.
Developers have to lock in their coins into a smart contract ensuring real-world use for their assets. Enjin has quickly grown its developer base with projects focusing on NFT assets, multi-chain infrastructure, and digital collectibles. Moreover, it announced the development of a $100 million fund called Efinity to support new metaverse projects.
Therefore, it offers a healthy upside potential for users looking for robust gains from the metaverse space in the future.
On the date of publication, Muslim Farooque held a LONG position in SOL and ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
