Is anyone surprised to learn that numerous investors are looking for cryptocurrencies’ prices to explode again? 

Digital currencies have stood the test of time with their evolution over the years, and the current bear market is just an obstacle they’ll have no issues to overcome. From niche assets to mainstream investment portfolio additions, they have evolved significantly over the last few years. Specialists predict that the global crypto market will reach over $5,19 billion by 2026, so the adoption of digital currencies will increase. 

Suppose you want to enter the crypto market in 2023; it’s essential to keep an eye on the trends about to impact the market and make a list of the digital currencies that have higher chances to bring a profit. Bitcoin and Ethereum have always been trendsetters, but they’re not the only digital currencies available. 

Ethereum’s price might have increased since the Merge and Shanghai Upgrade, but if you want to diversify your portfolio, you should also consider other cryptocurrencies. 

Solana

Solana was launched in 2017 as a blockchain platform that could support the development of decentralized applications. Many crypto pundits have named it an Ethereum killer because it completes more transactions per second and has lower transaction fees than the largest altcoin by market cap. 

Solana, similarly to Ethereum, can use smart contracts, which are paramount for the functioning of innovative applications like non-fungible tokens and decentralized finance. Solana (SOL) is the native token of the blockchain, and its price increased tremendously over the years. 

Stellar

Stellar was created as a payment network enabling users to do cross-border transactions. It’s one of the fastest networks and was developed to integrate into the present financial infrastructure and be scalable. The blockchain relies on a consensus protocol, meaning that it validates transactions without requiring mining. This feature places it among energy-efficient digital currencies like Ethereum. 

Besides having its own token, the blockchain also powers the project StellarX, which is a decentralized exchange. 

Cardano

Crypto experts often describe Cardano as an “Ouroboros proof-of-stake” digital token because it was developed using a research-based approach. Charles Hoskinson, one of the founding members of Ethereum, co-founded Cardano after he disagreed with the other Ethereum founders on the project’s direction. 

Cardano is the result of extensive peer-reviewed research and experimentation. The research lies at the cryptocurrency’s core, considering that the developers behind the project wrote over 120 papers on how blockchain technology functions before creating Cardano. 

The rigorous processes behind it make Cardano one of the most prominent PoS digital currencies. It has also been listed among the cryptocurrencies expected to kill Ethereum because it’s capable of several other functions that Ethereum lacks. The blockchain is also in its early stages and will probably go a long way with decentralized finance applications. Cardano aims to offer solutions to legal contract tracing, voter fraud, and chain interoperability and become a unique financial operating system using DeFi products. 

Polygon

Polygon was designed at the beginning as a Layer-2 solution meant to solve Ethereum’s main issues: increased traffic and network congestion. However, over the years, it has become a multi-chain system that enables blockchains to interact and collaborate with the help of Ethereum’s virtual machine. Three layers power Polygon, Ethereum, Bor, and Heimdall.

Bor is a layer that produces layers that put transactions into blocks and create a periodic snapshot of the digital ledger. Bor introduces the notion of block producers to refer to transaction validators.

The Heimdall layer aggregates the blocks the Bor produces validate because it confirms the blocks created after Bor Layer’s snapshot. The Heimdall layer has a more complex role because it also makes a Merkle tree and adds the Merkle root to the Ethereum mainnet. 

MATIC, Polygon’s native token, is the seventh-largest digital coin by market cap, and experts predict that it will grow greatly over the following years. However, its evolution is connected to the growth and usage of the Ethereum network because it works as a scaling platform that boosts Ethereum’s capabilities. 

Polkadot

Polkadot is a PoS digital currency developed to improve blockchains’ interoperability. Its protocol was created to connect permissionless and permissioned digital ledgers to enable systems to collaborate successfully. At its core lies the relay chain aiming to boost interoperability between different networks. Polkadot also serves parachains and their own native tokens to provide specific use cases. 

Polkadot is different from other blockchains that enable the creation of decentralized apps because it allows developers to create their own blockchain relying on Polkadot’s security chain rather than asking for them to create the dApps on a major blockchain.

The developers who use Ethereum to create decentralized apps have to come up with their own security measures, which makes small projects more prone to attack. However, Polkadot was created to share security, making it easier for developers to safeguard their projects. 

Cosmos

Cosmos might not be as well known as the other digital currencies listed above, but its value could grow in the following months. Its native token ATOM was developed to secure the network, function as a governance token, and give holders a say in how the Cosmos network should function. However, for a smaller blockchain like Cosmos, it might get challenging to stand apart because the crypto space is rich in independent blockchains.

Cosmos aims to alleviate the crypto space gap by facilitating communication between chains, boosting transaction speeds, and lowering fees. Its ultimate goal is to make blockchain technology more accessible to crypto users and app developers who would be more interested in joining the sector. This could only benefit blockchain technology because it would bring it into the mainstream and encourage optimists to enter the industry. 

Final words

Several digital currencies are derived in some form or another from the largest cryptocurrencies, Bitcoin and Ethereum. Most of them have a censorship-resistant architecture and open-source code, which means that no third party can interfere with them. The above digital currencies have gained importance in the sector over the last few months and hold the promise to generate profit. 

Read Also:

• What You Need To Know About How Cryptocurrencies Work
• Four Ways To Earn A Passive Income Through Cryptocurrency And Survive The Bear Market
• Thoughts On The Initial Capital Needed To Start Your Own Crypto Exchange Business