Some crypto analysts say that although crypto prices have been falling this year, they seem poised to bounce back amid soaring inflation and macroeconomic uncertainty around the world.
Below are two cryptocurrencies that they think “are a great way to bet on this opportunity.”
No one knows when the current bear market will end, so investors should bet on assets that can do well in a rebound. Solana’s huge technical strengths could help it carve out market share from its competitors, and it looks set to grow when the mood improves.
With a throughput of 50K transactions per second, Solana is significantly faster than its larger counterparts Ethereum and Cardano (which process 15 and 250 transactions per second, respectively). It is also on par with major payment networks such as Visa, which have a throughput of over 24,000 transactions per second.
Why is Solana so lightning fast? The answer lies in its unique consensus mechanism.
The network combines a Proof of Stake (PoS) system (where miners verify transactions using the coins they own) with an additional algorithm called Proof of History (PoH). According to the Solana website, PoH speeds up the block verification process by recording time, reducing the amount of work miners have to do.
Solana’s technical prowess makes it an attractive platform for decentralized applications (dApps), which are blockchain-based programs that enable more complex features such as cryptocurrency exchanges and digital art markets.
Unlike standalone blockchains like Solana, Aave is a token programmed on the Ethereum network. The platform is focused on decentralized finance, making it a great way for investors to bet on the potential real utility of blockchain technology.
Although Aave operates exclusively online, it helps mitigate the lack of viable options for investors looking to generate income in a low-interest-rate environment. The platform allows users to lend digital assets through liquidity pools in exchange for interest that varies based on demand.
Users can also temporarily “cash-out” using their cryptocurrency as collateral for a loan that can be converted to fiat without having to sell the original position. This can be useful for investors who need cash but don’t want to miss out on the potential growth of their crypto assets.
As an Ethereum-based platform, Aave faces the limitations of this network, such as slow transaction speeds and congestion. But Ethereum developers plan to fix scalability issues with an update called Ethereum 2.0, designed to move from proof of work (where miners solve puzzles to validate transactions) to proof of stake. It is not yet clear when these changes will take effect.