2 cryptocurrencies that could overtake Bitcoin

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The growth of Bitcoin (CRYPTO: BTC) over the past decade has started to gain more interest from institutions and large asset managers as a long-term investment. Despite the growth of other cryptocurrencies, such as Ethereum and Dogecoin, Bitcoin is still the largest in value, accounting for 40% of the market.

But other cryptocurrencies have much greater utility than Bitcoin, especially in the area of ​​decentralized finance (DeFi), non-fungible tokens (NFT), and more. This causes other coins to overtake Bitcoin, and 2022 could see this trend continue.

For these and other reasons, Avalanche (CRYPTO: AVAX) and Solana (CRYPTO: SOL) are two fast growing cryptocurrencies worth buying.

Image source: Getty Images.

1. Avalanche

Avalanche was developed by Ava Labs, a team of experts in IT, economics, finance and law. It was launched in 2020 with a market cap of around $ 100 million. The price of AVax has climbed over 3,000% over the past year and now ranks 11th most valuable cryptocurrency, with a market cap of $ 25 billion. Based on recent developments, AVAX, which is Avalanche’s native cryptocurrency, could see more 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 claims with the Federal Emergency Management Agency (FEMA).” The Avalanche blockchain would help improve the accuracy of federal claims and reduce cases of fraud.

Avalanche is the third most active cryptocurrency on Github, according to CryptoMiso, indicating strong interest from project developers. Avalanche is gaining more attention from developers and investors, mainly because Avalanche is much faster, cheaper, and more energy efficient than Bitcoin.

More offers like this from Deloitte could fuel positive sentiment and increase the value of AVax, so consider adding a small position to your crypto portfolio.

2. Solana

SOL’s price has risen even faster than AVAX, up 12,000% over the past year, giving it a market value of $ 54 billion, fifth among cryptos. 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 of a small investment.

Solana was designed to be fast. It was developed using an innovative blockchain architecture known as proof of history, allowing Solana to potentially process up to 710,000 transactions per second using today’s hardware. It’s much faster than the biggest credit card networks, such as Visa and Mastercard. Solana currently processes around 2,000 transactions per second, while Bitcoin typically processes around three transactions per second.

Considering its speed, energy efficiency and relatively lower transaction costs, Solana is quickly attracting interest from developers working on DeFi and NFT applications.

Solana is a good cryptocurrency to consider if you are looking to invest in the NFT boom. In case you were wondering, NFTs are essentially virtual collectibles sold as digital tokens and can be traded like any cryptocurrency. Solanart and Solsea are two NFT marketplaces based on Solana, and there will likely be more.

The growing popularity of NFTs is one of the factors contributing to investor interest in Solana. It’s a hot market that shows no signs of slowing down. Total NFT sales reached approximately $ 26.9 billion in 2021. Several major brands, including Nike and the toy company Mattel, have expressed interest in offering virtual collectibles for sale to NFT collectors. This does not necessarily directly benefit Solana, but it does lead to a positive sentiment around SOL which could support its value.

Think like an investor with cryptocurrency

Solana and Avalanche both tick all the right boxes of what to look for when investing in altcoins or any other cryptocurrency besides Bitcoin. They have increasing utility value, which Bitcoin lacks – beyond being the most ubiquitous digital currency.

Keep in mind that no analysis can guarantee the value of cryptocurrencies. The right cryptocurrency could make you a millionaire, but be aware of the risks. The best way to do this is to stay alert to recent developments that could benefit or hinder the adoption of a 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 a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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