- Bitcoin (BTC), the digital gold, crossed its ATH of $100K, indicating a 155% increase from the beginning of 2023. With the 2024 halving event, historical trends suggest a potential bull run.
- Ethereum (ETH), with its proof-of-stake (PoS) and Ethereum 2.0 upgrade, has rallied 66%. Expecting $26 billion, ETH is expected to reach $ 32,000 by 2030.
Bitcoin (BTC) and Ethereum (ETH) lead the crypto market by driving attention from all its potential investors. While Bitcoin is often used to hedge against inflation, Ethereum is the largest ecosystem for Decentralized Apps (dApps), decentralized finance (defi), and non-fungible tokens. However, if you are looking to diversify your portfolio, BTC and ETH are not the only options for investors looking to grow their portfolios.
If you are planning to expand your portfolio beyond Bitcoin and Ethereum, here are three other cryptocurrencies that promise growth in the long term.
Solana (SOL)
Solana, the Ethereum Killer, is built on an innovative blockchain platform designed to facilitate transactions at a very low speed and cost. Launched in 2020, it has quickly gained traction as a leading platform for Defi projects and the NFT marketplace.
- High Speed: Solana can handle over 65,000 transactions per second (TPS)
- Low transaction cost: it has an average transaction fee of $0.00025, outperforming other blockchain platforms.
- Proof of History: This consensus mechanism allows quick verification and transaction, improving its overall efficiency.
- Market Position: with a current price of $225.33, it is ranked as one of the top cryptocurrencies by market capitalization.
Why Invest in Solana?
Solana is a fast-evolving blockchain and offers several advantages to investors:
- High Performance
Solana with its proof of history (PoH) consensus mechanism allows a high transaction speed of over 65,000 transactions per second (TPS) with minimum latency. It integrated smart contracts and Decentralized finance for real-time game updates.
- Growing Ecosystem
Its platform is integrated with several decentralized applications (dApps), NFT platforms, and Web3 projects like Magic Eden and Serum. The scalability and user-friendly interface attract both developers and investors. It has partnered with major companies like Visa and PayPal to process its finances. Moreover, it holds a strong market position indicating strong community support.
- Long-Term Growth Potential
Experts forecast a promising future with a price rally of up to 10,600 by 2030. With growing innovations and institutional interest, Solana is expected to lead the rally.
Chainlink (LINK)
Chainlink is a decentralized Oracle network, that connects smart contracts (powered by Ethereum) with real-world data. It is widely integrated across industries like finance, insurance, and gaming for supplying off-chain data to on-chain smart contracts.
- Decentralized Oracles: the independent nodes crawl and verify data from external sources.
- Smart Contracts: integrates on-chain code with off-chain codes, allowing complex computation and transfers based on real-world information.
- LINK tokens: Nod operators can be paid for their services with LINK tokens.
- Service Level Agreements: every user can draft SLAs to specify their data requirements.
Why Invest in Chainlink?
- Wide Adoption
It can be easily integrated with several networks, from Ethereum to Solana Blockchain, increasing its utility and demand. It has been considered as a leading network allowing transactions worth trillion dollars.
- DeFi Integration
It allows DeFi applications to operate seamlessly to improve interoperability through its Cross-chain interoperability protocol (CCIP). Platforms like Aave and Synthetix rely on Chainlinks Oracle to fetch data.
- Long-Term Growth Potential
It has introduced staking, where holders can earn rewards by supporting the growth and security of the network. Moreover. Its quick expansion and seamless integration with other networks indicate an increase in its value.
Polygon (MATIC)
Originally launched as Matic Network in 2017, Polygon is a Layer 2 scaling solution designed to improve the performance of Ethereum. It addresses the scalability issues of Ethereum such as high gas fees and slow transactions.
- With a market cap of $1.27 B, MATIC is now trading at a market price of $0.6521.
- Allows seamless integration of Ethereum and other blockchains.
- Low transaction fees: it processes transactions off the main Ethereum chain, reducing the gas fees.
- Developer friendly: Allows developers to build and deploy their network easily with a modular SDK.
Why Invest in MATIC?
Scalability: Polygon allows users to process up to 65000 TPS with minimal costs, providing an efficient solution for developers and users alike.
Ecosystem Expansion: Polygon has been integrated with major dApps like Aave, Polygon, and Open Sea. This has attracted more users to the network.
Adoption: Corporate companies like Meta are looking for more NFT solutions on polygon. This indicates an expansion in normal crypto use.
How to Invest Wisely?
If you plan to diversify your portfolio, it is essential to have an investment strategy with realistic goals.
- Do your research: while you may get various advice from the internet, it is essential to evaluate the project details and growth potential before investing.
- Set Realistic Goals: investing and diversifying your portfolio can be overwhelming, especially if you are a new investor. Analyze if you are looking for short-term or long-term gains, and allocate your assets wisely.
- Manage Risk: avoid investing in a single asset, as it may lead to liquidity issues. So it is important to diversify and allocate funds.
Conclusion
While Ethereum and Bitcoin hold the top position in the crypto market with a combined market capitalization of over $1.5 trillion, other players have begun their journey to rise. Assets like Solana, Chainlink, and Matic lead the rally, it offers innovative solutions with expansion projects and offers substantial opportunities for investors looking to diversify their holdings. These coins have performed well historically and may offer good returns in the long term.