Bitcoin
Bitcoin Halving Is Complete: Three Cryptocurrencies to Buy Now
O Bitcoin (Bitcoin -1.08%) The halving on April 19 was one of the most anticipated events of the year for crypto investors. Previous Bitcoin halvings have led to spectacular crypto market rallies, and the expectation is that this halving cycle – despite the recent drop in Bitcoin’s price – will be no different.
So which cryptocurrencies are best positioned to rise in value after the Bitcoin halved? In addition to Bitcoin, three cryptocurrencies could generate spectacular gains over the next 12 months.
1. Stacks
Stacks (STX -4.84%) is a blockchain designed to build on Bitcoin’s long-term success. As a Layer 2 blockchain, it sits on top of the Bitcoin blockchain and provides extra scalability and functionality. You can think of it as making the main Bitcoin blockchain better than it already is.
While Stacks Although it is not yet a household name, it is currently one of the 35 largest cryptocurrencies, with a market value of US$3 billion. Year to date, Stacks is up 40%, which aligns perfectly with Bitcoin’s 40% returns. This correlation makes sense, as Stacks is tied to the long-term success of Bitcoin.
With Bitcoin becoming increasingly popular as a result of new spot Bitcoin exchange-traded funds (ETFs), demand for Stacks’ offerings will grow. Some people don’t just want to accumulate their Bitcoin – they want to do things with it. And that’s where Stacks comes into the picture. The more features it makes available to Bitcoin holders, the more valuable it should become.
2. Buscar.ai
The growing intersection between artificial intelligence (AI) and blockchain technology is fueling demand for AI cryptographic tokens. As there is no official ChatGPT Tokenthe next best option is Search.ai (FET -9.18%), a cryptographic token designed to power the future AI economy. Fetch.ai currently has a valuation of $1.7 billion and is ranked as one of the top 50 cryptocurrencies by market cap.
Image source: Getty Images.
Fetch.ai describes itself as “a decentralized, open, permissionless machine learning network with a cryptographic economy.” That’s a lot, but it just means that Fetch.ai is the go-to destination if you need AI-related bots, data, or services (known as “agents”). Say, for example, you’re interested in building a new AI bot for your company or industry. You wouldn’t need to build it from scratch. Theoretically, you would be able to find everything you need through the Fetch.ai platform.
Year to date, Fetch is up an impressive 200%. As long as the narrative around AI remains intact, the sky is the limit for Fetch.ai. That said, even after posting triple-digit returns this year, Fetch.ai still trades for just $2. So for less than the cost of a cup of coffee, you can invest in the future of AI technology.
3. Solana
Finally, there are Solana (SUN -3.26%), which has the potential to become “the next Ethereum.” For now, Ethereum is still the 800-pound gorilla in the layer 1 blockchain space, but Solana is a worthy rival. When it comes to areas like decentralized finance, Solana is quickly gaining ground. And remember: Solana has been tagged as a potential “Ethereum killer” in 2021, so it wouldn’t surprise anyone if it eventually surpasses Ethereum.
That said, there are some problems with Solana. In other words, it continues to be bogged down by random network outages that last much longer than they should. And much of its recent growth appears to be fueled by the meme coin craze, which is likely not sustainable in the long term.
But I still firmly believe in Solana’s long-term growth prospects. It is the only major blockchain with a mobile crypto strategy. The big idea here is that if people have a physical hardware product to get their hands on… the Saga encrypted phone – they will be much more likely to use the Solana blockchain. According to Solana, the Saga phone could be the way to onboard tens of thousands of new users.
And the winner is…
Three cryptocurrencies, three very different approaches to the crypto future. If you want to double your Bitcoin investment and stay within the Bitcoin ecosystem, then Stacks could be an intriguing option. If you are willing to take the risk of investing in AI, then Fetch.ai could be the right choice for you.
But my favorite pick remains Solana. In my opinion, it is the perfect example of a large-cap crypto with truly phenomenal long-term growth prospects. Given that Solana’s market cap is $60 billion and Ethereum’s market cap is $360 billion, there is potential for Solana to increase sixfold in value in the coming years. If you believe in the idea of Solana being “the next Ethereum”, then this could be the only cryptocurrency to buy after the Bitcoin halving.
Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions and recommends Bitcoin, Ethereum, Fetch, and Solana. The motley fool has a disclosure policy.