The crypto market is one that’s been in flux during 2023.
Despite a nice resurgence from 2022 lows during the first half of this year, volatility has once again gripped most tokens. Investors are closely watching the market’s course from a macro perspective for the rest of the year and well into 2024. Personally, I think the jury’s still out, and investors are right to be cautious about a potential upcoming recession, given all the warning signs in the market.
And so, for investors looking to stay diversified, certain cryptos are worth buying and holding for the long-term. Here are three I think have potential catalysts which could propel these digital assets higher during the this year’s fourth quarter.
Ethereum (ETH-USD)
Ethereum (ETH-USD) has gained 45% this year but still faces skepticism, trading 64% below its all-time high. Despite its all-important “Merge” upgrade (which went off without a hitch), Ethereum struggles to break $2,000, raising questions about its valuation.
Eight-year-old Ethereum is the benchmark for Layer-1 blockchains, with rivals like Cardano (ADA-USD), Avalanche (AVAX-USD), and Solana (SOL-USD) falling short.
Investing in Ethereum means investing in the innovation pioneer with a strong competitive edge, from smart contracts to NFTs and DeFi. This track record suggests substantial future potential. The Ethereum ecosystem expands with ongoing innovation, boasting the world’s largest developer community and an ever-growing range of applications. Wall Street explores it for payments, manufacturers for supply chains, thus highlighting its versatility.
Solana (SOL-USD)
Solana (SOL-USD) was once an “Ethereum killer” with bright prospects. However, the 2022 crypto market crash and FTX issues brought challenges. It had an outstanding 2023, surging 150%, outperforming Bitcoin and Ethereum. Despite this, it has less than 1% market share.
Solana’s narrative evolves, earning the title “Visa (NYSE:V) for digital assets”. Those included institutional adoption, scalability, DeFi, NFTs, and innovations boosting its Ethereum competition potential.
Solana’s technicals look promising. Clearing $27 resistance may lead to $32.40 and $40-plus, with the potential for even larger gains to $130-plus. Solana’s rebound in 2023 is impressive. Blockchain issues have been addressed, the company’s NFT market is gaining traction, and a mobile crypto strategy are key drivers for this crypto worth watching.
Avalanche (AVAX-USD)
Like the other proof-of-stake layer-1 networks on this list, Avalanche (AVAX-USD) provides various functionality for end users. Avalanche and Solana are fast and scalable blockchains, yet Solana focuses on decentralized exchanges.
Avalanche’s DeFi metrics have mixed performance. Avalanche invests in asset tokenization, indicating strong growth potential for those who believe real world assets will eventually be tokenized on the blockchain. This may happen, given the improved efficiency of these networks relative to those of traditional finance.
Indeed, Avalanche stands out as a potential Ethereum contender due to its impressive speed and scalability, capable of 6,500 transactions per second. However, the search for a true Ethereum alternative remains challenging.
In the near- to medium-term, it’s challenging to be optimistic about Avalanche. Yet, when considering the long-term blockchain landscape, Avalanche may be potentially undervalued. If this project can continue to iterate and provide updates over time in a bid to compete with Ethereum and its ever-changing network, I do think there’s a place for Avalanche at the table.
Those betting on the growth of DeFi may want to consider these three main players in the space right now.
On the date of publication, Chris MacDonald has a LONG position in ETH, SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
