Crypto prices continue to struggle, but these 3 Altcoins are worth watching in September

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This month is all about upgrades and potential developments.

Important points

• September will be the month of Ethereum’s long-awaited merger. Pay attention to related cryptos like Polygon and Ethereum Classic as well as the smart contract giant itself.
• Cosmos may see progress on the Rho upgrade in the coming months.
• Helium is trying to shake off a difficult few months with talk of a possible switch to Solana.

After nine months of falling or stagnant prices, investors continue to hope that the crypto bear market will soon run its course. Unfortunately, inflation is still high and a recession could be on the cards. In addition, Fed Chairman Jerome Powell indicated last week that the central bank’s hawkish stance was likely to continue. The market already took a hit after his speech. But be prepared for further volatility around the next potential rate hike announcement on 20-21. September.

Meanwhile, there is a lot of crypto development going on behind the scenes. Low prices have not stopped many of these businesses from pursuing the transformational potential of blockchain. In fact, it is always good to look for ongoing development activity and upgrades, as it is an indicator that a project can survive in the long term.

Here are three projects you should keep on your radar in September.

1. Ethereum (ETH)

Given Ethereum’s size, it’s hard to count it as an altcoin. However, the transition from proof of work to proof of stake will dominate the crypto agenda. Not only is it the biggest crypto news of the month, it is arguably one of the biggest crypto events of the year. The long-awaited merger will take place in two stages, the first of which will be on September 6 and the second will follow shortly after.

As investors, be aware that any technical issues could undermine confidence in the entire industry, not just Ethereum. There is also a lot of hype and speculation surrounding the merger, which could mean we see a short-term price drop for ETH as the merger rolls out. If you hold your eyes for a long time, you will be less affected by immediate foaminess.

Here are a couple of other cryptos to watch with direct connections to Ethereum:

• Polygon (MATIC): You would think that upgrading Ethereum would be a negative for layer 2 solutions like Polygon. After all, they exist to improve Ethereum’s performance, so if it gets better, won’t they become redundant? It is unlikely. First, the merger will not solve problems such as high gas taxes or network congestion. Second, even as Ethereum gets faster and cheaper, Layer 2 will still be able to improve performance even more.
• Ethereum Classic (ETC): Also called the “original” Ethereum, Ethereum Classic was formed after a disagreement divided the community over five years ago. It will not move to proof of stake. That makes it attractive to many Ethereum miners whose equipment is becoming redundant.

2. Cosmos (ATOM)

Cosmos attracted a lot of attention in August after chief investment officer VanEck said there was a long-term positive about ATOM. That hype may have passed, but we’ll be watching in September and hoping for progress on the long-awaited Rho upgrade. Originally due in the second quarter of this year, there is no set date, but when it does it will provide improved management and other features.

Cosmos is an interoperability crypto, meaning it helps blockchains communicate with each other. This is a big deal for the industry, and one of several reasons why VanEck is optimistic about the future. It is available from most top cryptocurrency exchanges.

3. Helium (HNT)

Helium has had a tough time lately. The decentralized network that pays HNT to operators running its long-distance wifi routers first came under fire for misrepresenting its partnerships. Subsequently, people questioned the usefulness, citing low monthly income figures.

Helium hit back at critics, emphasizing the various use cases for the project and indicating potential market share. CEO and founder Amir Haleem explained that low media revenue numbers are not representative of the network’s total revenue.

Fast forward to today, and Helium is considering moving to the Solana (SOL) network. The community will be able to vote on the proposal, which will simplify the blockchain architecture and make it more scalable, in mid-September. There is also a big “HeliumHouse” gathering in New York on September 20th.

The bottom line

There is still a lot of uncertainty in the cryptocurrency markets, and unfortunately, prices may fall further. Don’t jump and buy the above cryptos hoping for short term gains. Instead, do your own research and consider how you think they might perform over the long term and how they might fit into your broader portfolio. As with any high-risk investment, only spend money you can afford to lose.

Cosmos and Helium are both interesting crypto projects with a lot to offer. However, all crypto investments have risks and these are no different. Cosmos has a nasty habit of delaying upgrades — the Rho is already delayed — and some critics say Helium’s business doesn’t need a blockchain at all. It is also important not to get too tied up in the hype around Ethereum. The merger is a big deal, but it’s just one step in a bigger journey. The next major move will be to actually reduce gas taxes and improve scalability, and that upgrade won’t come until at least next year.