Cryptocurrencies have once again rallied this fall, showing new signs of bullishness and opportunities for investors. With much of the market dialed into the Federal Reserve and other monetary policy decisions, the appeal of cryptos has only increased.
This includes the staunch growth of the decentralized finance (DeFi) industry, which is creeping up towards $80 billion during 2021. This number is expected to continue to explode during 2022, further propelling investments in the space.
Investing in cryptocurrencies can be challenging given the scope and options to choose from. For Q4 2021 however, there are three options that currently stand out above the rest.
What Crypto is Right for You?
Algorand operates as a blockchain-based network that utilizes its native ALGO token for transactions. The network powers smart contracts while also enabling developers to build and launch non-fungible tokens (NFTs) and tokens.
Of note, Algorand has established itself as the first pure proof-of-stake (PoS) blockchain, which is pegged by many as the future. This differs notably from proof-of-work (PoW) that carries a stigma as a poor choice for long-term realizations.
Algorand has also been particularly active in the deal making space, having secured nearly 500 partnerships to date. This could indicate a groundswell of utility and opportunity in the future on its platform, which is helping sustain and buoy optimism and growth.
If you want to buy Algorand, it is important to be mindful of the recent price action. Looking ahead, ALGO still sits below its September 2021 peak, leaving a healthy amount of upside. Many investors are waiting to see what comes next and a surge of positive news lately surrounding it will only help its prospects in Q4 and beyond.
Ethereum is currently the second largest crypto by market cap and functions as the blockchain of choice for developers building decentralized applications (dApps). This includes apps running on a peer-to-peer (P2P) network rather than centralized servers.
At present, nearly 3,000 dApps utilize the Ethereum blockchain, which encompass some of the world’s most prolific and relevant utilities. This entails social media networks, decentralized exchanges, and online gaming or eSports venues.
Ethereum dApp users are also responsible for upwards of $200 million worth of transactions per day, which is only slated to grow moving forward. In addition to these strong growth elements, Ethereum also boasts a variety of internal advantages over other coins, namely Bitcoin.
By the end of 2022, Ethereum will have largely migrated away from proof-of-work (PoW) protocols, reducing the network’s energy usage by upwards of 99%. This is a huge boon for proponents of climate change and reductions of pollution by nations.
Buying Ethereum is a strong play considering the increasing focus on a shifting climate and efforts by countries to curtail emissions.
A transition to proof-of-stake (PoS) by the end of 2022 will go a long way in solidifying Ethereum’s future and could be one of the biggest moves to affect it in years.
Ethereum also went through a network hard fork upgrade back on August 5, 2021, that helped raise the bullish outlook for Ether. Declining ETH reserves may indicate that traders may want to hold their Ether tokens rather than sell them for other assets in Q4.
This could result in a short-term supply squeeze for investors looking to enter the Ether market, and as such helping make ETH more valuable over the next few months heading into year-end.
Cardano has had a back-and-forth past during the couple months, surging to an all-time high in September following the Alonzo Fork.
This update allowed smart contract functionality on its blockchain, pushing aspirations that Cardano could bypass the market cap of Ethereum down the road.
This optimism has been tempered in recent weeks following a letdown in the crypto sector, though once again Cardano has been gaining momentum. As it already functions on a PoS protocol, Cardano can process more transactions than Ethereum, in tandem with lower network fees.
By extension, Cardano developers have begun focusing on NFTs for infrastructural developments. As it sits comfortably below last month’s highs, ADA has healthy room for upside in Q4 with the same potential intact.
Consequently, investing in Cardano represents a strong short- and long-term play in the crypto space.