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2 Cryptocurrencies That Could Outpace Bitcoin

2 Cryptocurrencies That Could Outpace Bitcoin
Written by publishing team

Bitcoin‘s (CRYPTO: BTC) Growth over the past decade has begun to attract more interest from institutions and large asset managers as a long-term investment. Despite the growth of other cryptocurrencies, such as Ethereum And DogecoinBitcoin remains the largest by value, capturing 40% of the market.

But other cryptocurrencies have a much greater benefit than Bitcoin, especially in the field of decentralized finance (DeFi), non-fungible tokens (NFTs), and much more. This causes other coins to outperform Bitcoin, and 2022 could see this trend continue.

For these and other reasons, Avalanche (CRYPTO: AVAX) And Solana (CRYPTO: SOL) Two types of fast-growing cryptocurrencies are worth buying.

Image source: Getty Images.

1. avalanche

Avalanche is developed by Ava Labs, a team of experts in computer science, economics, finance and law. It was launched in 2020 with a market capitalization of around $100 million. AVAX’s price has risen over 3,000% over the past year and is now the 11th most valuable cryptocurrency, with a market capitalization of $25 billion. Judging by the recent developments, AVAX, the original avalanche cryptocurrency, could see further gains next year.

Recently, Deloitte announced a partnership with Ava Labs to use the Avalanche blockchain to support a new disaster recovery platform for state and local governments. The platform is called “Close As You Go” and helps local governments “simplify and streamline disaster compensation applications to the Federal Emergency Management Agency (FEMA)”. The avalanche blockchain will help improve the accuracy of federal claims and reduce fraud cases.

Avalanche ranks as the third most active cryptocurrency on Github, according to CryptoMiso, indicating strong interest from the developers of the project. The avalanche is getting more attention from developers and investors, mainly because the avalanche is much faster, cheaper, and more energy efficient than bitcoin.

More trades like Deloitte can fuel positive emotions and drive AVAX value higher, so consider adding a small position to your crypto portfolio.

2. Solana

The price of SOL has risen faster than AVAX, having risen by 12,000% over the past year, giving it a market capitalization of $54 billion, the fifth largest among cryptocurrencies. Cryptocurrencies are risky. It is possible to lose all your money, but if you invest what you are willing to lose, Solana’s performance shows that it is worth the risk with a small investment.

Solana is designed to be fast. Developed using an innovative blockchain architecture known as Proof of Date, allowing Solana to process up to 710,000 transactions per second using today’s hardware. This is several times faster than the largest credit card networks, such as Visa And Master Card Credit Card. Solana currently processes around 2,000 per second, while Bitcoin typically handles around three transactions per second.

Due to its speed, energy efficiency, and relatively low transaction cost, Solana is rapidly gaining interest from developers working on DeFi and NFT applications.

Solana is a good cryptocurrency to consider if you are interested in investing in the NFT boom. If you were wondering, NFTs are basically virtual holdings that are sold as digital tokens and can be traded like any cryptocurrency. Solanart and Solsea are two NFT markets that are based on Solana, and there are likely to be more.

The growing popularity of NFTs is one factor contributing to investor interest in Solana. It’s a hot market that shows no signs of slowing down. NFT’s total sales reached an estimated $26.9 billion in 2021. Many major brands, including nike and games company Mattel, have expressed an interest in offering virtual collectibles for sale to NFT collectors. This does not necessarily benefit Solana directly, but it does lead to positive feelings about SOL, which can support its value.

Think like an investor with a cryptocurrency

Solana and Avalanche tick all the right boxes for what to look for when investing in alternative digital currencies or any cryptocurrency besides Bitcoin. They have an increased interest value, something Bitcoin lacks – other than being the most popular digital currency.

Keep in mind that no amount of analysis can guarantee the appreciation of cryptocurrencies. The right cryptocurrency may make you a millionaire, but be aware of the risks. The best way forward is to stay alert to recent developments that may benefit or harm the adoption of any given cryptocurrency, invest what you can afford to lose, and focus on the long-term.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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