Alternatives to Bitcoin and Ethereum
Bitcoin(BTC) and Ethereum(ETH) are the two largest cryptocurrencies in the market, but there are
plenty of other suitable alternatives worth exploring.
If you’re new to cryptocurrency investing, it’s easy to fall into the trap of thinking that Bitcoin and Ethereum, Ethereum’s native cryptocurrency, are the only solid and safe investment options on the market.
And whereas several maximalists would possibly believe you, different cryptocurrencies (known as altcoins) are clearly on the rise.
According to the latest data, Bitcoin’s dominance as measured by market capitalization has fallen from 69% to 42% of the total cryptocurrency market value over the past year, while altcoins have fallen from 11 % to 21%. Non-fungible tokens (NFTs) and Defi-related protocols are two likely catalysts for this shift, as an increasing number of holders diversify into tokens tied to fast-growing ecosystems.
What you should look for when selecting an alternative crypto
When exploring alternative investment chances in the crypto market, it’s important to evaluate the choices you are considering to select the ones that best suit your investment strategy. Elements to consider include;
Availability: This means how many exchanges or platforms list the particular crypto investment. Is it easy to buy and sell large volumes at any time? Is the token supported on multiple blockchains?
Roadmap developments: When investing for the long term, you’ll want to ensure that the underlying cryptocurrency project has a solid plan for future development, including adding new features, partnerships, and updates. These should help sustain the corresponding token price over time and attract new investors to the project.
Investment viability: It is essential to analyze the feasibility of the digital assets in which you plan to invest. You don’t want to invest in a cryptocurrency that could potentially drop in value before your investment horizon expires.
Decentralized applications’ platform coins
Solana (SOL)
Solana is another rapidly expanding blockchain ecosystem looking to replace Ethereum as the biggest hub for decentralized applications (dapps). Solana’s goal is to create a cheaper and faster way to access and transact on blockchain applications.
Cardano (ADA)
Similar to how Solana Ethereum, Cardano has created a highly sophisticated infrastructure designed to eliminate some of the flaws of established crypto networks. While the growth of Cardano kicked off in 2017, it was not until 2021 that the team founded an upgrade that allowed the blockchain to supply smart contract functionality. This made it possible for Cardano to host and simplify the creation of native decentralized applications that use smart contracts for their processes. Due to this infrastructural improvement and other factors, ADA, the native token of Cardano, experienced a 650% gain in 2021.