Conflicting signals make cryptocurrencies a potentially volatile bet for 2023. Thomas Yeung, CFA, InvestorPlace market analyst, covers the best altcoin projects to know.
Altcoin projects that investors should have in mind
Ethereum (ETH)
A successful transition to the Proof of Stake (PoS) protocol puts the world’s largest altcoin project ahead.
- Approximate Market Cap: $220 billion
- Established Year: 2015
- Return since 2021: 61%
- Rating: ★★★★★
Ethereum and its founding members showed that quality matters. That’s why Ethereum remains the world’s largest altcoin thanks to its strong development team. That’s why it continues to earn a five-star ranking on the list.
Binance Coin (BNB)
Binance has turned its native coin into a major crypto exchange tool.
- Approximate Market Cap: $50 billion
- Established Year: 2017
- Return since 2021: 675%
- Rating: ★★★★
BNB keeps moving forward. The coin is among the top 10 in the world by market capitalization. It also remains a popular coin for traders looking for a cheaper way to do business.
Cardano (ADA)
The third generation cryptocurrency is stalling. However, the altcoin remains one of the most technologically promising.
- Approximate Market Cap: $15 billion
- Established Year: 2017
- Return since 2021: 10%
- Rating: ★★★★
There are alarming signs for Cardano and the cryptocurrency. So unless the Foundation can develop a “killer app” for solid cryptocurrency, it may remain a promising coin with no real-world use.
Dogecoin (DOGE)
The world’s most popular meme coin has fallen victim to its own success.
- Approximate Market Cap: $13 billion
- Established Year: 2013
- Return since 2021: 910%
- Rating: ★★★★
Meanwhile, Dogecoin remains a 4-star crypto to watch in 2023. Act three… act four… even act five exist in the world of breast investment. While Dogecoin may lack the technological advancement of its more recent peers, investors should not underestimate the power of four-legged stardom in the crypto game.
Hedera (HBAR)
A niche cryptocurrency for corporate use.
- Approximate Market Cap: $2 billion
- Established Year: 2018
- Return since 2021: 10%
- Rating: ★★★★
Hedera’s scalable technology holds promise for the future. Therefore, HBAR will be one of the first cryptocurrencies to benefit if companies turn to crypto again.
Monero (XMR)
A privacy-focused cryptocurrency that remains popular with the crowd you’d expect.
- Approximate Market Cap: $3 billion
- Established Year: 2014
- Return since 2021: 0%
- Rating: ★★★★
However, Monero continues to have legitimate uses. Many libertarian crypto investors don’t like being tracked by government agencies. So, it will use Monero as an expression. As know-your-customer (KYC) rules become more common, investors can expect XMR to remain popular with those who need to hide their tracks.
Left (LEFT)
Ethereum competitor Solana has made progress on NFTs.
- Approximate Market Cap: $9 billion
- Established Year: 2020
- Return since 2021: 600%
- Rating: ★★★★
On the other hand, Ethereum has a long road ahead of its rival. But it remains a promising alternative in the NFT world.
Ripple (XRP)
A protracted SEC fight adds uncertainty to a promising project.
- Approximate Market Cap: $25 billion
- Established Year: 2012
- Return since 2021: 31%
- Rating: ★★★★
However, the legal problems won’t last forever. The case is currently in the Southern District of New York and a decision is expected soon. If the judge rules against Ripple and XRP, the token will be pushed further down. But if the lawsuit is dismissed, XRP could quickly return to its prominent role as a future alternative to SWIFT.
Algorand (ALGO)
A technologically advanced cryptocurrency seeking use.
- Approximate Market Cap: $1.5 billion
- Established Year: 2017
- Return since 2021: 30%
- Score: ★★★
Algorand remains a promising crypto to watch for its speed and security. Smart kids can succeed in the right job. If the Algorand Foundation can find a useful role in crypto transactions, perhaps ALGO will succeed as better-connected children.
Avalanche (AVAX)
A relatively unknown cryptocurrency consistently ranks in the top 15 by size.
- Approximate Market Cap: $6 billion
- Established Year: 2020
- Return since 2021: 280%
- Score: ★★★
The lead developer of Avalanche Blockchain also has significant financial backers. In February 2019, Ava Labs raised $6 million from investors like Andreessen Horowitz and Polychain. And in 2022, the company is allegedly raising another $350 million at a valuation of $5.25 billion.
Binance USD (BUSD), Dai (DAI), Tether (USDT), and USD Coin (USDC)
The four largest stablecoins that underpin the crypto ecosystem.
- Approximate Market Cap: Miscellaneous
- Year Founded: Various
- Yield Since 2021: 0% (or ~9% if staked)
- Score: ★★★
Cryptocurrencies may one day go beyond the need to be tied to the US dollar. But until then, investors will need to know about these four biggest stablecoins.
Filecoin (FIL)
A unique approach to Web3 computing.
- Approximate Market Cap: $2.5 billion
- Established Year: 2017
- Return since 2021: -73%
- Score: ★★★
This makes FIL a crypto to watch. The cryptocurrency charges almost nothing to store data, provided you also run a node. If the Filecoin Foundation can help the system reach scale, FIL will naturally find its place in the Web3 ecosystem.
OCD (OCD)
Things are booming for OKEx crypto exchange. Its native token is also doing well.
- Approximate Market Cap: $3.2 billion
- Established Year: 2017
- Return since 2021: 750%
- Score: ★★★
Investors will want to be careful. Some crypto analysts have long questioned OKEx’s data, particularly crypto volumes traded. Along these lines, the centralization of crypto exchanges means that a bad actor could wipe out an entire native cryptocurrency. FTX and Terra Luna investors learned this fact in 2022. While the future looks bright for OCD, enormous long-tail risks remain.
Shiba Inu (SHIB)
Dogecoin, but less fun!
- Approximate Market Cap: $7 billion
- Established Year: 2020
- Return since 2021: 650,000%
- Score: ★★★
Meme coins like the Shiba Inu have a lasting power from time to time. This is a high-risk cryptocurrency that can rise 10x or go straight to zero.
Uniswap (UNI)
The world’s largest automated market maker (AMM) is seeing increased competition from centralized exchanges.
- Approximate Market Cap: $3.4 billion
- Established Year: 2018
- Return since 2021: -15%
- Score: ★★★
UNI continues to be a crucial player in DeFi. Also, if more centralized exchanges start to crash, investors will likely see a resurgence of interest in decentralized exchanges like Uniswap.
ApeCoin (APE)
Meanwhile, Dogecoin reminds us that we should never ignore crypto fads.
- Approximate Market Cap: $1.6 billion
- Established Year: 2022
- Return since Start: 50%
- Score: ★★
ApeCoin is also on the list of cryptocurrencies to be known for its meme roots. Dogecoin experienced an incredible reversal during its rise in 2021. Therefore, ApeCoin may experience a similar resurgence if the stars realign one day.
Ethereum Classic (ETC)
Ethereum’s original protocol remains popular with its fans.
- Approximate Market Cap: $2.8 billion
- Year Founded: 2015 (hard bifurcation in 2016)
- Return since 2021: 150%
- Score: ★★
Ethereum Classic only gets 2 stars due to the lack of a development team. As you follow on Kriptokoin.com, regular Ethereum has moved on to an efficient Proof of Stake protocol, leaving ETC behind. As Bitcoin’s many forks show, investors tend to stick with any proven branch of cryptocurrency. So, although ETC remains the “original” Ethereum, investors will likely look elsewhere for long-term returns.
Internet Computer (ICP)
A well-funded altcoin project, but failed to live up to expectations.
- Approximate Market Cap: $2.8 billion
- Established Year: 2021
- Return to Start: -98.5%
- Rating: ★★
Hence, it has become a cryptocurrency that has lost 98.5% of its value since its launch. While DFINITY has succeeded in building a Blockchain computer, investors will want to wait for more concrete progress before embarking on this business.
Lido DAO (LDO)
Crypto’s largest staking network provides some stable returns with some risk.
- Approximate Market Cap: $2.8 billion
- Established Year: 2021
- Return since Start: 26%
- Score: ★★
Meanwhile, Lido DAO remains a promising enterprise. However, the low star rating reflects the enormous financial risks underlying liquid staking.
Stellar (XLM)
It struggles to take advantage of its rival Ripple’s SEC issues.
- Approximate Market Cap: $2.6 billion
- Established Year: 2014
- Return since 2021: -65%
- Score: ★★
Stellar remains a coin to watch for its potential to surpass XRP. But until the Stellar Development Foundation can translate its benefits into real-world earnings, investors will find that XLM is trading at a significant discount relative to its main competitor.
Toncoin (TON)
Telegram’s old attempt to create a native token remains a major altcoin.
- Approximate Market Cap: $3 billion
- Established Year: 2021
- Return since Start: 330%
- Score: ★★
However, despite its size, Toncoin remains a risky bet for the same trust in Telegram. Meanwhile, TON crypto is not listed on major exchanges like Binance. Therefore, a failure in Telegram’s growth will also affect the so-called native cryptocurrency.
Tron (TRON)
An altcoin project with a controversial leader.
- Approximate Market Cap: $6 billion
- Established Year: 2017
- Return since 2021: 120%
- Score: ★★
Meanwhile, investors will want to be wary of Tron. But it remains a must-know altcoin thanks to its outspoken founder.
Bitcoin Cash (BCH)
The big Bitcoin fork has yet to hit the ground.
- Approximate Market Cap: $2.5 billion
- Established Year: 2017
- Return since 2021: -74%
- Score: ★
This is why Bitcoin Cash is struggling to gain real-world acceptance beyond its original fan base. So, unless there is a fundamental change, BCH will remain a one-star altcoin.
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