here are the most popular Altcoins

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The ideal word to describe 2023 for the world of cryptocurrencies is a roller coaster as asset prices have undergone strong fluctuations. But it seems that the industry is heading towards a bull market again, so everyone believes that the value of cryptocurrencies will increase. The sector will offer investors multiple opportunities to increase their profits.

The main reason why experts believe that the market will turn bullish is that Bitcoin has seen a surge in prices. Considering the history of the industry, it is likely that all other cryptocurrencies will follow the same trend. In April this year, the market pioneer experienced a halving event that cut block rewards in half. After this event, the supply available for sale by miners decreased by 50%. Typically, halvings are preceded and followed by periods in which the price of Bitcoin rises due to increased demand Ethereum price will follow suit.

In an environment where the future of Bitcoin looks bright, it is also essential to take a look at altcoins that drive higher investment returns.

Ethereum

No one familiar with the cryptocurrency industry should be surprised that Ethereum is listed first when talking about altcoins that perform well. Everyone recognizes its dominance in the DeFi system and the successful transition it has completed to the greener Proof of Stake algorithm. While many other cryptocurrencies have gained popularity in the industry over the years, this one remains a key player, with the second largest market capitalization.

Ethereum is more than digital money; is a platform that hosts dApps and smart contracts and powers decentralized finance. In recent years, institutional investors have started to turn their attention towards Ethereum because it has proven to have the potential to provide them with a profit.

Solana

Solana is one of investors’ top choices when it comes to altcoins to add to their portfolios during bull markets. Solana has attracted everyone’s attention because it has brought some innovative solutions to the market such as decentralization, security and scalability. It is ideal to add it to an investment portfolio at the end of the bear market because the chances of its price rising during the bull run are high due to its rapid transaction processing.

Solana has also earned a reputation as one of the most thriving ecosystems for NFTs and DeFi because it focuses on developer experience and greater scalability. It is one of the main competitors of Ethereum because it has a high yield in the sector. According to data, sales of NFTs on its blockchain surpassed those of Ethereum in late 2023, largely due to growing interest from online sellers.

Avalanche

Cryptocurrency experts believe that AVAX could be one of the altcoins that could explode in the coming months because the Avalanche platform has performed well since its inception. It was primarily developed to support the creation of decentralized services and applications, but it also serves other purposes. AVAX, its native token, is used to enable transactions, smart contract creation, and power platform validation.

Avalanche is a popular blockchain platform because it offers users numerous benefits. It allows fast transactions, has a scalable architecture, and its smart contracts are compatible with Ethereum.

Cardan

Cardano came to life after its developers conducted meticulous research with the goal of creating a scalable and secure network that cryptocurrency enthusiasts can use to achieve their goals. It focuses on smart contracts and sustainability, so it is an ideal contender in the race to become a successful altcoin.

ADA, its native token, is more than a speculative asset because it has several real-world applications. It can be used to enhance voting systems, verify online identities, and improve the effectiveness of supply chain management. Due to its multiple use cases, Cardano is listed among the blockchain worth investing in.

Polygon

Polygon has a native token called MATIC which is named after a parent network called MATIC Network. Polygon was launched in 2017 to provide cryptocurrency users with lower transaction costs in Ethereum and other compatible blockchains. MATIC is also used as gas in other Polygon sidechains to pay transactions and fees. Users can receive MATIC tokens to keep the network functioning.

The main reason why cryptocurrency enthusiasts use MATIC is that it allows transactions in short periods.

Polka dot

Polkadot is often described as the Internet for blockchains because it works as a bridge between different blockchains. Through Polkadot, blockchains can share data and collaborate, offering investors new opportunities. Polkadot gained popularity in the cryptocurrency industry because it embraced a multichain approach. It may not have performed well during the bearish phase, but it has the potential to see a price increase in the next phase. Polkadot is one of the main networks used by developers when they want to create custom blockchains and is ideal for hosting projects in any industry.

The creators of Polkadot understand the importance of interoperability, so they developed a platform that allows blockchains to collaborate and connect, eliminating the existence of isolated networks.

What factors could cause altcoins to become more popular?

No one can deny that altcoins are simply fascinating due to their unique characteristics. However, not everyone performs well in the market. Here are the main factors that could allow alternative coins to increase in price.

– Economic factors play a significant role in the evolution of altcoins. Their prices would rise as cryptocurrencies enter the mainstream and are used for financial transactions.

– Media influence can also trigger a price increase because it draws attention to the market. Famous people can influence the evolution of altcoins because the people who follow them usually listen to their advice.

– Industry regulation influences the evolution of the entire cryptocurrency market. The emergence of new networks and platforms has led to the need for regulation to create a framework within which investors can work.

– Demand for the altcoin will always drive an increase in value because cryptocurrencies are highly volatile. Market dynamics and demand show that the public is interested in a particular asset; hence, its popularity is higher.

Final words

In the coming months the cryptocurrency market could enter a new bullish phase and investors will need to be able to select the right assets for their portfolios.

*This item has been paid for. Cryptonomist did not write the article or test the platform.

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