As we enter the new year, the cryptocurrency market is constantly evolving and growing. While Bitcoin remains the most well-known and widely adopted cryptocurrency, there are many other altcoins that are worth considering for investment in 2023.
In this article, we will highlight the top 4 altcoins to look out for in 2023. These cryptocurrencies have shown promising growth and development and have the potential to become industry leaders in the near future. Whether you are a seasoned cryptocurrency investor or new to the game, these altcoins are worth keeping an eye on in the coming year.
Indeed, you may not expect to see Ethereum on this list, as it is a key member of blue-chip cryptos. However, the platform's upgrade to Ethereum 2.0 is set to lead ETH's returns to greater heights.
Ethereum is now more environmentally friendly due to this upgrade, specifically the switch from Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus that led to a 99% reduction in energy consumption. Secondly, ETH is now deflationary; to create new tokens and earn new ETH, network participants must stake a minimum of 32ETH, unlike the previous PoW model. Hence, several tokens are out of circulation (locked up in stake), eliminating inflation with Ethereum.
For context, since The Merge, which was concluded 113 days ago, ETH supply has only increased by 3808 ETH, which translates to annual inflation of 0.01% annually - significantly lesser than pre-merge inflation statistics of 4.09%. With similar levels of demand, the new supply schedule of ETH will ensure that it becomes much more valuable, and if we exit the bear season, ETH may become a 5-figure coin.
Uniswap is a market-leading Decentralized Exchange (DEX). When you think of Binance and Coinbase for CEXs, Uniswap is on the other end.
UNI is the governance token for the platform, which is used to vote for platform development, token distribution mechanism, and any other major decision on the platform. UNI holders also earn a percentage of trading fees gotten on the platform.
Uniswap is set to have increased usage in 2023 as the developers are working on new upgrades that support the Layer-2 solution, optimism. This upgrade will ensure cheaper and faster transactions and may even allow users to pay gas fees in other tokens that aren't Ethereum. You can expect the UNI token to soar high this year if this successfully pulls through.
Compound is a DeFi lending and borrowing platform that allows borrowers to deposit crypto collateral and take loans and allows individual lenders to make profits from the interest paid.
Compound has recently launched a "Compound Vault" feature that aims to provide liquidity for COMP - The protocol's native cryptocurrency, by bringing in a new set of banks and financial institutions who will invest in the protocol for a 4% interest.
This collaboration with financial institutions could spike COMP's valuation, as the protocol may become the first-ever crypto bank.
Apecoin is an NFT/Metaverse project inspired by Yuga Lab's Bored Ape Yacht Club (BAYC) concept. Apecoin was created to be utilized in the developing APE Ecosystem, which is funded by the APE Foundation.
In mid-2022, BAYC developers, Yuga Labs, stated that "Otherside," a metaverse planet populated with the Bored Apes, would be created, and ApeCoin would be the official currency of that planet.
Hence, in the "Otherside" metaverse, APE tokens will be used to purchase lands, create upgrades, and do more things for the existing BAYC Ape avatars. Already BAYC is one of the most successful Metaverse projects; hence, if the same success can be replicated with "Otherside," Apecoin will soar massively in 2023.
To conclude, the cryptocurrency market is an exciting and dynamic space, and many altcoins are worth considering for investment in 2023. The top 4 altcoins highlighted in this article have shown promising growth and development and have the potential to become industry leaders in the near future.
This article should only be taken for educational and informational purposes only and not financial advice; as with any investment, you should conduct thorough research and due diligence before making any decisions. However, by keeping an eye on these altcoins and staying informed about the latest developments in the cryptocurrency market, you can make informed investment decisions that align with your financial goals.