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Cryptocurrency investments offer the potential for explosive growth and skyrocketing values. In 2021, we witnessed the remarkable rise of cryptocurrencies like Solana (SOL) with a staggering increase of over 10,000% and meme token Shiba Inu (SHIB) shooting up more than 40,000,000%. However, the market went through a bearish phase, resulting in significant price drops for major coins. While the future of cryptocurrencies remains uncertain, the market has shown resilience in the past. Although it is impossible to predict which cryptocurrency will experience the next boom, we can identify some potential candidates that are capitalizing on current trends such as artificial intelligence (AI), decentralized apps (dApps), and digital payment solutions.
Eight Promising Cryptocurrencies for 2023
Here are eight cryptocurrencies that could be due for a significant bull run in 2023:
1. SingularityNET (AGIX)
SingularityNET is a blockchain platform that enables users to create, share, and monetize AI services. It operates a global AI marketplace where individuals can purchase various AI services using the AGIX utility token. The AI boom has been one of the most exciting developments in 2023, and SingularityNET is well-positioned to capitalize on this trend. With a team of AI scientists, researchers, and developers, the platform offers users the convenience of buying AI services or developing and selling their own. SingularityNET experienced significant success earlier in 2023, with its price increasing by more than 1,300%. As AI adoption continues to grow, SingularityNET could see further success.
2. Ethereum (ETH)
While Ethereum may not be under the radar like some lesser-known cryptocurrencies, it still holds significant growth potential. As the second-largest cryptocurrency, Ethereum pioneered smart contracts, which allow developers to build decentralized applications (dApps). Ethereum’s first-mover advantage has established its dominance over similar competitors. The transition to a proof-of-stake system in September 2022 improved Ethereum’s energy efficiency and introduced staking opportunities for investors. Ethereum offers substantial growth potential with less volatility compared to smaller cryptocurrencies. Additionally, there are several Ethereum-related stocks worth considering for your investment portfolio.
3. Fetch.ai (FET)
Fetch.ai is an AI lab that empowers individuals and organizations to develop their own autonomous agents capable of handling real-world tasks. These agents interact with each other on a blockchain platform, enabling collaboration without human intervention. The native cryptocurrency for Fetch.ai is FET, which functions as payment within the network. Fetch.ai experienced early success in 2023 due to the hype surrounding AI technology and could be poised for further growth in the future.
4. Polygon (MATIC)
Polygon is a unique blockchain platform designed to enhance the scalability of Ethereum by enabling its dApps to utilize Polygon’s sidechains. One of the exciting aspects of Polygon is its partnerships with renowned brands such as Walt Disney, Starbucks, Meta Platforms, and Nike. These partnerships have facilitated the launch of various NFT projects, adding to Polygon’s appeal. While Polygon is already a top cryptocurrency, it offers a relatively lower risk compared to smaller cryptos and still has room for growth. If you already invest in Disney, Starbucks, or other large companies working with Polygon, it may be an interesting addition to your portfolio.
5. Monero (XMR)
Monero is the best-known privacy coin, offering anonymous and untraceable transactions. It utilizes privacy-enhancing technology to hide the sender, recipient, and transaction amount of each transaction. With increasing crypto regulations worldwide, including the United States, there is a growing demand for privacy in cryptocurrency transactions. Monero fills this need and presents a clear use case for continued success. As regulations become stricter, investors seeking privacy may turn to Monero, making it a dark-horse pick in the crypto market.
6. Aave (AAVE)
Aave is a decentralized finance (DeFi) protocol and lending platform that enables users to lend and borrow cryptocurrency through smart contracts, eliminating the need for intermediaries. Users can earn interest on their digital assets lent on Aave. Aave has expanded beyond crypto lending and ventured into real-world assets through a partnership with Centrifuge. This partnership allows Aave to offer a Real World Asset (RWA) Market, enabling companies to tokenize parts of their businesses. Investors can purchase tokens offered by these businesses, and the issuers of the tokens can borrow stablecoins against their assets. Aave’s expansion into real-world assets positions it as a potential long-term winner.
7. Basic Attention Token (BAT)
Basic Attention Token (BAT) presents a unique opportunity for users to get paid for browsing the internet. By installing the Brave browser, users can replace traditional internet ads with ads that reward them in BAT tokens. Brave has surpassed 50 million monthly active users, and its multichain Brave Wallet supports leading dApps. BAT utility in DeFi has also experienced rapid growth, with over 10% of the BAT supply being used in DeFi protocols. While Brave has a long way to go to compete with major web browsers, its steady growth and innovative approach make it an interesting investment option.
8. XRP (XRP)
XRP serves as the native cryptocurrency for Ripple, a payment protocol that utilizes blockchain technology for fast and cost-effective transactions, especially for international transfers. Ripple has established partnerships with numerous financial institutions that leverage its technology. While Ripple faced a Securities and Exchange Commission (SEC) lawsuit in 2020, it emerged mostly victorious, with a judge ruling that Ripple did not violate security laws by selling XRP tokens on exchanges. This legal outcome led to an increase in XRP’s price and could further contribute to its value and trading volume.
Should You Consider These Investment Opportunities?
Investing in the next explosive cryptocurrency can be tempting, but it is a challenging, time-consuming, and highly risky endeavor. Small cryptocurrencies may offer significant growth potential, but they also carry a higher risk of failure, resulting in the loss of your entire investment. To balance this risk, it is advisable to allocate some funds to established cryptocurrency stocks or large-cap coins. Researching smaller cryptocurrencies requires substantial time and effort, and even the most promising projects can face unexpected setbacks in the volatile crypto market. Trying to predict cryptocurrency trends is not a reliable investment strategy.
While exploring investment opportunities in the cryptocurrency market, it is essential to manage your expectations and invest a conservative amount. The market can be highly unpredictable, and even the most well-researched investments may not yield the desired results. It is crucial to diversify your portfolio and consult with financial professionals before making any investment decisions.
Disclaimer: The information provided in this article is solely for informational purposes and should not be construed as financial advice. Investing in cryptocurrencies involves inherent risks, and readers should conduct their own research and consult with financial professionals before making any investment decisions.
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