Although Bitcoin takes most of the crypto glory, the market offers many interesting investment opportunities. The so-called alternative coins, which are all coins except BTC, are attracting more attention as time passes.
Ethereum has been the leading option in the crypto market, being the first network offering support for decentralized apps and smart contracts. Many networks with similar structures appeared later, such as Solana and Avalanche. Cardano is another altcoin worth mentioning since it’s among the top ten in the crypto rankings. Many traders still buy Litecoin, which is among the currencies that aim to rival Bitcoin.
In this article, we present the top 3 altcoins currently worth investing in. Our experts focused on hidden gems and the huge potential of tokens. Here are our suggestions.
1. Arweave (AR)
Arweave is a Web3 protocol that offers an innovative approach to decentralized web hosting and data storage. You’ll find several projects with a similar idea to connect people with extra storage with those who need room to store their data. Arweave is unique in its approach because it charges you only once, and its storage services are permanent. To be precise, the limit is 200 years.
The project uses blockweaves rather than blockchains, which is why it has the name “Arweave.” The creators designed a structure where a single block connects to two previous blocks to form a weave. The graph of blocks serves to store data, while the proof of access is Arweave’s consensus mechanism.
A computer checking the transactions on the network looks for a randomly picked marker that was present in the previous bundle. If it discovers the marker, the transaction info gets stored on the network. Once that happens, the computer gets the reward, which is an incentive for validators to participate in the network.
Arweave allows participants to choose which data they will store. The content moderation feature can also be attractive to users who are ready to offer extra space. The mechanisms available allow the storage of only images and not audio files.
A single AR coin is worth about $25. The estimation is that almost all of the maximum 66 million AR coins are in circulation. The project’s market cap is $1.63 billion, placing it just out of the top 50 cryptocurrencies in this category. Arweave partnerships boost the network’s reputability since Solana, Avalanche, Cosmos, and Polkadot all rely on Arweave to store their historical transaction info.
2. Stacks (STX)
Tim Draper is a famous investor whose net worth is estimated to be around $2 billion. In December 2023, he discussed the Stacks crypto project. Draper revealed his excitement regarding STX, comparing it to Microsoft’s success. The investor revealed that projects that focus on delivering vital apps for Bitcoin are promising. That single comment led to STX value going up by over 25% in a matter of days.
Stacks is now worth about $2.58 per coin. Its market cap is over $3.7 billion, while you’ll find 1.45 billion STX tokens circulating. That’s about four-fifths of the maximum supply, which is 1.818 billion coins.
But why is Stacks so popular and interesting to major investors? Its idea is crucial since it’s a layer-2 solution that aims to deliver smart contracts and decentralized apps to Bitcoin. It does so by linking to BTC and making its base layer programmable.
Proof of transfer is the consensus mechanism you’ll find in the Stacks network. It allows settling transactions to Bitcoin, and that’s how it connects to BTC. Stack doesn’t change the BTC structure, but expands its capabilities and leverages its powers.
Another important feature offered by Stacks is microblocks. The STX structure has the same block time limit as Bitcoin. However, the creators divided each block into microsegments. Thanks to that, the transaction processing time is improved, and a single transfer only takes seconds.
STX went into development in 2013. The project worked with relevant authorities, and the SEC approved the token sale in 2019. Users can stake STX coins to earn passive income, which the creators call “stacking.”
At this moment, Stacks has over 60 apps in different categories. Those include social apps like Console Sefo Finance and other DeFi applications, as well as DAO apps like Ballot. A decent selection of NFTs and reputable exchanges like Binance are also available on Stacks.
Stacks Investment Proposals are how the network aims to improve its structure and services. Some announced SIPs include a trustless two-way peg to Bitcoin and notifications for token metadata updates. The Stacks 2.1 upgrade should bring improved reliability, while the Nakamoto release aims to boost network transaction speed.
3. Dogwitfhat (WIF)
Source: Pixabay
Dogecoin has been the first meme token to become a huge market hit. Its history goes back to 2013, but it’s still close to the top 3 meme coins in the industry. Dogwifhat follows the same theme, using beautiful canine creatures as token inspiration. WIF got its name from a viral meme with the same name. You might have seen a Shiba Inu dog wearing a hat.
The creators launched the Dogwifhat crypto project on the Solana blockchain. It joined the open market in December 2023, only a month after the launch. Major exchanges like Crypto.com listed WIF, among other dog-themed coins.
A single WIF coin is worth around $2.80. Its total supply is 998 million tokens, and all of them are in circulation. The project’s market cap is $2.7 billion, but the problem is that Dogwifhat’s price solely depends on speculation and community enthusiasm. Many perceive it as the DOGE successor, indicating that WIF is likely to stick around for years.
Conclusion
The crypto market is having a bullish year — an opportunity that potential investors shouldn’t miss. Many new projects are attracting attention, and we set aside three coins that are worth your while. That doesn’t mean those are the only altcoins you should put on your checklist. Don’t hesitate to create a shortlist with other alternative coins, ranging from proven choices like Ethereum to hidden gems. Portfolio diversification can be a crucial part of success, which is why identifying the right assets to invest in should be your main focus!
Please note!: Advice provided regarding investments or which cryptocurrencies are superior to others are solely the opinions of our guest writers. We do not assume any responsibility for these recommendations.
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