When it comes to investing in cryptocurrencies, price is not always an indicator of value. However, there are a few cryptocurrencies that are trading under $1 today and are worth considering for their long-term potential. Here are the altcoin projects to watch out for, according to RJ Fulton, one of the analysts of the US consulting giant The Motley Fool…
The first altcoin on the list: Stacks
Stacks is currently priced at around $0.65, but don’t let that fool you. The goal of Stacks is to add smart contract functionality to Bitcoin that is crucial to decentralized finance (DeFi) capabilities and that Bitcoin currently lacks. Using Stacks, developers can build all kinds of DeFi applications such as decentralized exchanges, lending and borrowing platforms, and immutable tokens (NFTs). The possibilities are vast. But most importantly, because Stacks works with Bitcoin, users benefit from the security and decentralization that distinguishes Bitcoin from other Blockchains, while also having DeFi features.
Recently, the appetite for DeFi use cases in Bitcoin has increased as Bitcoin-based NFTs have caught the attention of crypto investors. Known as ordinals, these NFTs take advantage of a loophole that allows them to be attached to individual satoshis, the smallest form of Bitcoin. Although new, this approach to Bitcoin NFTs has proved costly. A better option for NFTs in Bitcoin would be to use the Stacks Blockchain as it offers a cost-effective way to bring DeFi applications to Bitcoin. Fortunately, investors seem to be starting to realize this.
Because there is a huge increase in the locked total value (TVL) metric of the Stacks Blockchain. In 2023 alone, Stacks’ TVL has increased by nearly 400 percent. A clear pioneer and pioneer in creating a smart contract-friendly Bitcoin, Stacks is well on its way to becoming the “next big thing” in crypto. If the lines that previously separated Bitcoin and DeFi continue to blur, the value of Stacks could increase further as the DeFi economy improves.
Polygon is also on the analyst’s list
Polygon is currently priced at around $0.87 and at this level could prove to be a great buy in the long run due to its role in making Ethereum, the current leader of DeFi, faster and cheaper. To do this, Polygon uses a technology known as zero-knowledge EVM aggregations. What this means is that instead of processing transactions one by one like Ethereum does, Polygon bundles the transactions and then adds them back to Ethereum for final processing. In addition, unlike other Ethereum scaling solutions, Polygon maintains compatibility with Ethereum’s code, which is a very important and attractive feature for developers.
Polygon’s zero-knowledge EVM rollups effectively solve Ethereum’s scalability issue without sacrificing security, increasing fees, or compromising speeds. This unique combination has led not only average users but even some of the world’s largest companies to flock to Polygon. Notable companies like Starbucks, JP Morgan, Meta Platforms, Nike, and Franklin Templeton have all decided to use Polygon’s Blockchain in various ways over the past year, as we reported on Cryptokoin.com.
Bullish prospect for Cardano
Finally, there is the mention of Cardano, which is trading at around $0.37. Cardano’s goal is to become a competitor in the DeFi world. Ethereum may dominate this market, but Cardano can make progress in this market. Recently, Cardano developers released the Hydra update, which allows complex smart contracts to run without significantly increasing fees or compromising speed. According to the analyst, this has made Cardano a more attractive option for developers and users, and the data reflects this.
Since the beginning of the year, the number of smart contracts on Cardano has increased by more than 74 percent. In addition, Cardano’s TVL has nearly tripled since the beginning of the year. According to the analyst, if the Cardano ecosystem continues to grow at an impressive rate and deliver updates that significantly increase its usefulness, this Ethereum competitor could finally lay the foundation for its long-term utility and value.
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