As markets brace for a likely recession ahead, investors search for cryptos that can survive market crashes. Uncertainty looms large over the Federal Reserve’s plans, elevating volatility across the board.
Against this backdrop, the crypto market stands to benefit as investors hunt for returns in a market that has exhibited an inverse correlation with traditional financial systems,
This phenomenon shows the best cryptos for portfolio diversification, drawing attention to those with high stability and security, low risk, and real-world applications.
Aspects such as smart contracts, cross-platform interoperability, and lightning-fast transaction speeds further pique the interest of both existing and potential investors.
In this evolving financial landscape, savvy investors are looking for resilient cryptos with low volatility and risk that not only withstand market turmoil but also offer valuable opportunities for diversification.
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After a torrid 2022, the first quarter of the year has had BTC skyrocketing from $16,000 to a jaw-dropping $28,000. The recent lull in inflation hints at a shift in the Federal Reserve’s hawkish stance, fueling bullish sentiments.
BTC’s unrivaled crypto liquidity allows investors to trade and convert profits into real-world currency seamlessly. With the step-changes during the pandemic, a sizeable amount of institutional capital is parked in BTC, further solidifying its bull case. Hence, with these interesting advantages, it’s no wonder why BTC continues to steamroll its competition.
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Ethereum (ETH-USD) is the second most popular crypto in terms of market cap and often mirrors Bitcoin’s movements.
It’s no surprise that it enjoyed a robust first quarter, soaring from $1,200 to a remarkable $1,800. The platform’s sheer size and magnetic appeal to institutional investors make it a safe bet during heightened volatility.
The platform has been undergoing multiple changes, boosting scalability, security, and safety. It will introduce an innovative scaling solution called roll-ups that accelerate transactions while cutting user fees.
Its much-talked-about proto-dank sharding upgrade is expected to be launched in the second half of 2023, making transactions roughly 40 to 100 times cheaper.
The recent Shanghai fork has effectively laid the groundwork for brighter future ETH enthusiasts. These cutting-edge enhancements will further cement ETH’s status as an industry trailblazer.
Cardano (ADA-USD) is arguably one of the most popular altcoins, which is nipping at BTC’s heels in the race for year-to-date gains.
Conceived by Ethereum co-founder Charles Hoskinson, ADA boasts a wide variety of features similar to ETH, including a public blockchain platform, a robust proof-of-stake model, and enabling decentralized finance transactions.
Cardano’s breakneck pace and powerful technology have helped it rise up the ranks of the hotly competitive crypto sphere. With its capabilities of handling one million transactions per second and minimal energy footprint, it has become one the top crypto picks of crypto investors.
With a slew of upgrades on the horizon, Cardano will bolster its security and enable seamless interconnectivity with other blockchains. Should these enhancements live up to expectations, we could witness a major rally in ADA.
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Solana (SOL-USD) is another dazzling altcoin that was one of the stand-out performers during the pandemic years.
However, like its peers, it shed a ton of value last year, dropping over 90% in value. It’s been ticking in the green since the start of the year; the jury is still unsure whether Solana can sustain its upward trajectory throughout 2023.
Solana offers various applications, spanning decentralized finance, gaming, non-fungible tokens (NFT), and others. The Layer 1 blockchain network outperformed Ethereum multiple times in the past few years across all key crypto verticals.
Most recently, the platform announced its foray into the burgeoning artificial intelligence sector. Solana users can now effectively interact with the network using an open-source plugin for the AI chatbot, ChatGPT.
This development allows users to monitor wallet balances, transfer Solana-native tokens, and even scoop up NFTs. Also, it unveiled its crypto-centric smartphone, Saga, which will function as a dedicated wallet for digital currencies.
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As one of the top Layer 2 scaling solutions, Polygon (MATIC-USD) swoops in to address the speed-related issues that impact first-generation crypto protocols such as Bitcoin and Ethereum.
It primarily caters to the Ethereum network and has emerged as a vital cog in the platform’s machine. Its future hinges on Ethereum’s dominance and sluggish transaction speeds. Given the Ethereum network’s current speeds, Polygon will remain relevant in the crypto sphere.
Polygon secured a whopping $450 million investment from Sequoia Capital in growing its network. The company spent $1 billion in 2021 and early 2022 to add new firms to its network and expand its offerings.
Though the bear market has dampened investor sentiment, a revived bull market could ignite another major lift-off. Likewise, if more projects flock to the Polygon network, the outlook for MATIC will be bullish.
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Dogecoin is certainly a fan-favorite in the crypto realm, but many would argue that it is both a blessing and a curse.
With a massive and loyal online community behind it, DOGE will remain relevant despite its risk.
Though it does not have the same utility as other cryptos mentioned in the article, Dogecoin’s status as a leading crypto cannot be argued with.
Throughout the year, DOGE has witnessed several days where daily values have increased by 10%, enticing investors to capitalize on long-term gains. It has become a magnet for speculative crypto enthusiasts who want to capture lofty gains fueled by volatility.
Furthermore, it boasts a daily liquidity volume of more than $230 million, roughly 24 hours preceding this article, further highlighting its appeal to investors seeking a dynamic crypto asset.
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Chainlink (LINK-USD) is another popular altcoin that is essentially a powerful blockchain network of oracles.
Oracles efficiently connect real-world data with decentralized systems. Chainlink is essentially revolutionizing the smart contract real by delivering critical data capacity to various blockchains.
Also, as a major catalyst for Web 3.0 development, the platform’s dynamic exits optimize smart contract efficiency.
Effectively bridging the gap between on-chain and off-chain data sources, Chainlink provides crucial input for smart contracts.
Though the LINK token took hiding last year, its future gleams with promise. The token is up an impressive 30% since the year’s onset, showcasing the token’s long-term potential for growth and survival in unconducive markets.
Chainlink’s spectacular progress signals its unwavering commitment to driving innovation in its sector.
On the date of publication, Muslim Farooque 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
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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