3 Screaming Buys to Grab Before Crypto Comes Roaring Back
There are many options available to investors looking to play the momentum of the crypto sector right now. From mega-cap tokens Bitcoin (BTC-USD) and Ethereum (ETH-USD) to the most speculative meme tokens, there’s something out there for everyone.
Of course, in this environment, investors are best suited to look for the highest quality investments. That’s true in the world of stocks as well as digital assets. Thus, a fairly wide selection of unproven crypto projects can be put aside for now by most investors.
However, there are still many higher quality cryptos to choose from in this sector. The search for “screaming buys” in this space is one that isn’t so cut and dried right now.
That said, I think certain crypto projects are worth considering, for those betting on a comeback for the entire sector. Here are my top three picks for those looking to play crypto right now.
Arbitrum (ARB-USD)
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AltLayer has been chosen as the first summary-as-a-service provider to help Arbitration (ARB-USD) Orbit, as the Layer 2 scaling solution for Ethereum now enters the Layer 3 arena. Known for improving the efficiency (both cost and speed) of transactions on the Ethereum network, Arbitrum has seen a surge in interest among investors so far this year. Arbitrum essentially allows developers to execute unmodified EVM contracts and ETH transactions on the second layer while retaining the benefits of the Ethereum layer 1 blockchain. In particular, optimistic rollups are used to facilitate communication between the Ethereum blockchain and Arbitrum’s scaling solution (more on that later).
Arbitrum’s launch of Arbitrum Orbit in March enabled developers to construct a permissionless Layer 3 blockchain using Arbitrum technology. To help developers working with Orbit and simplify the creation and distribution of decentralized applications (dApps) using rollups, AltLayer was chosen as a partner. Rollups are integral to the layer-2 scalability of the Arbitrum network in general.
Special, Arbitrum recently passed Ethereum in daily transactions for the third time this past month, processing 367,680 transactions on April 23rd, versus Ethereum’s 261.86k. In addition, Arbitrum’s total value locked in smart contracts ranks fourth behind BNB Chain, with $3.57 billion TVL. Thus, this is a network that sees impressive activity to start the year. For those betting on continued growth, picking up some ARB here seems like a solid bet.
Avalanche (AVAX-USD)
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Avalanche (AVAX USD) is among the most impressive projects to be released after 2020. This network, which runs using its native token AVAX, is often considered one of the fastest smart contract-enabled proof-of-stake blockchains in the entire sector.
Avalanche, a blockchain platform with a market value of just over 6 billion dollarsuses a consensus model for blockchain transactions similar to proof-of-stake.
Unlike other cryptocurrencies such as Bitcoin and Ethereum, Avalanche offers greater security against network attacks. One of its distinctive features is the addition of subnets, which allow the creation of private or public blockchains for various purposes using the Avalanche network.
I think Avalanche could be a long-term winner because of the use cases. Although it experienced a significant 90% decline during the 2022 bear market, AVAX has had a meaningful rally since the beginning of the year. Consequently, for those positive about the future of decentralized finance, AVAX is a project with real-world use cases that should support its valuation and hopeful appreciation over time.
Solana (SOL-USD)
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Due to its high speed, Solana (SOL USD) has gained attention as a possible Ethereum rival during the pandemic. The slow transaction speed of Ethereum has been a major problem for users and developers, with Solana being seen as a potential solution due to its fast processing capabilities.
Solana’s transaction processing speed of 50,000 transactions per second is significantly faster than Ethereum’s 13 per second, giving it an advantage over both traditional banks and Ethereum due to the rapid completion of financial transactions.
In the fall of 2021, the value of SOL tokens peaked around $260, at the absolute peak of the crypto market. Many in the space were betting that Solana would rise to more than $1,000 per token, predicting a market cap in the hundreds of billions (or trillions) of dollars.
Of course things have changed. That said, I think there are reasons to remain intrigued by Solana. This network recently unveiled its Saga phone, a new Android device for crypto enthusiasts and Web3 optimization. The phone costs $1,000 and offers a “Web3 in your pocket” experience, allowing users to make faster and more secure cryptocurrency payments and NFT trading.
Solana continues to attract bullish investors due to several reasons. Firstly, it is second most traded NFT blockchain, with its Magic Eden NFT marketplace occasionally surpassing OpenSea’s Ethereum NFTs by traded volume. In addition, Solana’s development team has shown an impressive grasp of marketing. This should bode well for those who are betting long-term on which network can dominate the DeFi-driven future.
At the date of publication, Chris MacDonald held a position in SOL. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
