What are the most promising crypto currencies? 2023
Newcomer in the investment sector, the crypto currencies market is difficult to grasp. The sequence of periods of euphoria (bull market 🐮) and stagnation or even decline (bear market 🐻) characterize this market. So, how do you get out of the game and identify promising crypto currencies?
The most famous crypto currency by far is Bitcoin (BTC). Perfect to start in this universe. By the way, on Finance Hero you will find our analysis on whether it is a good or bad idea to buy bitcoins. But what if you wanted to go even further by investing in lesser known but promising crypto currencies? You’ve found the right article!
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What makes a crypto currency promising?
Before we introduce you to 4 promising crypto currencies, we will explain why we chose these.
The core element is simple: it’s the distinction between a real project ✅ and a projectless crypto ⛔. Thus, we will not encourage you to invest in memes coins like Dogecoin (DOGE) or Shiba Inu (SHIB) for example! So, how do you recognize a promising crypto currency?
First of all, the project must have a real utility for companies, individuals and/or the financial system. Secondly, the project must be led by a reputable and competent team. If this criterion is not always easy to distinguish, it can be assessed in particular in the quality of the whitepaper of the crypto in question, this central document which presents the project in detail.
The next part is more technical, it is the tokenomics, that is to say the fundamental analysis of a project. To summarize quickly, we look at whether there is a limited or unlimited issue of tokens, the frequency and logic of the issue, as well as the number of tokens in the hands of the team behind the project.
Do not confuse the promising crypto-currencies we list here, which already have solid projects, with new crypto-currencies whose existence is more recent, and the long-term success also even more uncertain.
Finally, we are not going to highlight here projects more related to NFTs, such as Ecomi and its OMI crypto, or projects that are more confidential in size or don’t seem to have much traction lately, such as Matrix AI Network. If you’re looking for newer, riskier, but also potentially more profitable innovative projects, you can check out the new initiative below, for example.
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For the presentation of the 4 most promising cryptos, we did the fundamental analysis beforehand to avoid showering you with numbers.
The 4 most promising crypto currencies
Cardano (ADA), for building decentralized applications
Launched back in 2015 by one of the co-founders of Ethereum (ETH), Cardano is one of the most promising crypto currencies. It is an open source blockchain built to enable the development of decentralized applications (dAPPs for Decentralized Applications).
You should know that Cardano has a somewhat troubled reputation within the ecosystem. Indeed, the founder was quick to announce the ultimate goal of his blockchain: to dethrone Ethereum. That’s why it’s been nicknamed “Ethereum Killer” 💀. It’s a real challenge!
Despite sometimes erratic communication, Cardano has achieved results. First of all, it is one of the best capitalizations on the market. Second, its ecosystem of dApps, thanks to the possibility of deploying smart contracts, has grown rapidly. Today, many projects have been launched on the Cardano blockchain, such as the French Cardashift.
Cardano has proven that it can be a fast, cheap and reliable blockchain. Finally, it uses the Proof of Stake consensus, more generally called Proof of Stake (PoS). It is much less energy consuming than the one used by Ethereum. The future looks bright for Cardano!
Polkadot (DOT), for interoperability between blockchains
Polkadot is an infrastructure blockchain created in 2017 that enables the development of dApps and DeFi protocols. However, this project differs from the others presented in a few ways. First of all, the project team is really well respected and led by the prominent Gavin Wood, one of the co-founders of Ethereum. However, he is not megalomaniac, because in his new governance model, Polkadot allows anyone to launch a referendum on a proposed evolution. This is completely in the original spirit of blockchain projects!
Secondly, Polkadot theoretically allows interoperability between blockchains, i.e. the ability to communicate between them. On this point, it is the most advanced project. Above all, Polkadot has created a very innovative system, that of parachains.
To sum up, a parachain is an independent blockchain with the Polkadot network as its central system. The latter serves as an engine for the parachains, which can create all the functionalities they want, while benefiting from the security of the Polkadot network. This is the difference with Ethereum, where the blockchains using its infrastructure are limited by the Ethereum protocol itself.
It’s quite technical, so we hope you understand! You should know that in order to get a parachain, you have to win an auction, where all holders of DOT, the token of Polkadot, can participate. So you’d be making an excellent choice by investing in this promising crypto currency.
Polygon (MATIC)
Our latest promising crypto is called Polygon. It’s a protocol created in 2017 with the ambition of connecting a blockchain network that can be compatible with Ethereum. The goal is to address the slowness and cost of the Ethereum network, while also taking advantage of its benefits, such as the deployment of smart contracts.
Polygon has managed to solve the problem of Ethereum blockchain congestion, while using the latter! This is a real technical feat, which for the moment only the Polygon project has managed to implement.
This is a blockchain that has become important to the DeFi ecosystem. For example, Uniswap, the largest of the DeFi protocols, has chosen Polygon for its V3, leaving Ethereum aside. And on the traditional economy side, Mercedes-Benz wants to get into data marketing with Polygon through Acentrik.
This shows you the interest of Polygon and the probable success that this project will meet!
Among the well-established projects, whose crypto price still has room to grow, we could also have mentioned Ripple and its token the XRP. Being one of the largest capitalizations, its fate is nevertheless very dependent on an ongoing procedure with an American regulator, the SEC. Will you take the bet?
Solana (SOL), for the payment revolution
⚠️ The scandal related to the FTX platform has unfortunately largely affected the Solana blockchain, which had strong ties to this company. The Solana community is therefore gradually disassociating itself from FTX, but its valuation has been divided by two in the week of November 7, 2022. At this point, it’s hard to say to what extent the project will be able to rise again and make its case.
Solana is another promising crypto-currency riding the wave of dApps. It is also a blockchain built to provide an infrastructure for DeFi but also for the famous NFTs, the non-fungible tokens. It is therefore one of the most awaited projects and you must have heard about it if you follow the crypto market.
Born in 2017, the Solana project has some similarities with Cardano, especially on the “Ethereum Killer” side and the use of PoS. However, Solana’s strength is its theoretical promise of being able to perform up to 65,000 transactions per second 😲 !
Many (very) projects have been built to overcome the weaknesses of Ethereum. The examples in this article are far from being exhaustive! For example, the Avalanche project, and its AVAX crypto, is also an “Ethereum Killer”. Or the Fantom project and its FTM crypto.
That’s why it’s nicknamed the Visa of cryptos 💳, as its protocol can largely compete with bank cards. So Solana has a vision that goes beyond just DeFi’s protocols.
If the platform has experienced some setbacks in the summer of 2022 in particular, with a hack to the tune of about 5 million euros, it has taken adequate measures. First of all the flaw is mainly due to Slope wallets a priori. So not necessarily the Solana blockchain as such. Moreover, Jump Crypto, a company with a great experience in the robustness of IT infrastructures will accompany Solana to further strengthen its performance. This is a reassuring guarantee of the project’s success.
The Solana blockchain is experiencing strong growth in the Non Fungible Tokens (NFTs) market where its market share is approaching 25% as of early October 2022. It must be said that sales of NFTs through this blockchain have almost doubled in September 2022. So a nice development dynamic.
If you want to invest in a promising crypto currency, Solana would prove to be an excellent choice!
