雅虎香港財經 Beyond ETH: 3 Cryptos That Are a Better Bet Than Ethereum
Over the last 15 years, cryptocurrencies have existed. And as long as these digital assets have proliferated, they’ve done so with volatility.
The entire market capitalization of the crypto sector peaked right around $3 trillion during the height of the last hype-driven mania in 2021. However, a so-called ‘crypto winter’ ensued in the last couple years, with the sector bottoming out around $900 billion. At the time of writing, the entire market is moving quickly toward a $2.5 trillion valuation, with plenty of momentum to break through to new highs.
Ethereum (ETH-USD) is certainly one of the top tokens leading the way higher, alongside the king of crypto Bitcoin (BTC-USD). Yet, there could be other more lucrative options in this sector for long-term investors seeking even greater upside. Let’s dive into three such tokens.
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Solana (SOL-USD)
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A well-known “Ethereum Killer,” Solana (SOL-USD) might be an excellent option to consider instead of Ethereum.
This proof-of-stake network is built on an intriguing proof-of-history consensus mechanism. Essentially, that means Solana uses time stamps to speed up the sorting of transactions. Doing so allows the network to process multiples of the typical order flow at a fraction of the cost.
Therefore, this speed and cost advantage are reasons most investors like Solana. The network has become synonymous with the NFT space, given the fact that many transactions are for smaller dollar amounts. Ethereum’s network, which can charge hefty gas fees for its usage, isn’t as well-suited for such purposes. Hence, the real-world utility Solana has been able to generate.
Additionally, while Ethereum focuses more on gradual upgrades, Solana is known for innovative solutions such as their Saga phone and successful crypto strategies. These high-growth strategies make this token more compelling for those seeking outsized gains, at least during this bull market rally.
Avalanche (AVAX-USD)
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It was only in 2020 when Ava Labs launched Avalanche (AVAX-USD). This new blockchain offers seamless automated contract executions through its smart contract support. Also, Avalanche focuses on enhancing scalability and usability. This allows the blockchain to handle thousands of transactions per second.
One of the best features investors love about Avalanche compared to Ethereum is its relative cost-effectiveness. Like Solana, Avalanche offers transaction fees that are a fraction of the cost, which is rare for other blockchains to offer.
As of the time of writing, Avalanche is the 10th-largest crypto based on market capitalization. AVAX’s consensus protocol facilitates node collaboration, ensuring transaction processing. It boosts security by randomly verifying validators’ confirmations, enhancing transaction legitimacy. Additionally, its three-blockchain structure resolves common blockchain issues, offering scalability, interoperability, and user-friendliness. This sets Avalanche apart in the blockchain sector and is the core thesis for owning this token for the long-term.
Cardano (ADA-USD)
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Standing out due to its strong focus on sustainability and security, Cardano (ADA-USD) places third in the list of cryptos to buy instead of Ethereum. Utilizing smart contracts via the Alonzo upgrade, ADA offers lucrative investment prospects. Predictions suggest Cardano could surge to new all-time highs, as soon as this August. The jury remains out on that, but I do think this is a mega-cap token many investors will be watching closely.
Much of that has to do with Cardano’s impressive user growth. Total wallets on the Cardano network are nearing 4.6 million, with active daily addresses surpassing 30,000 and peaking at 64,568 on February 16. This spike in interest hints at growing demand for Cardano, signaling more upside could be on the short-, medium- and long-term horizon.
I think Cardano’s relative value proposition is intriguing, but I wouldn’t be the farm on this one. Even still, Cardano can be viewed as a diversification play for investors looking to build a well-rounded crypto portfolio. In that regard, this network, with its strong fundamental growth metrics, appears appealing at current levels.
On the date of publication, Chris MacDonald 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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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