Synopsis
Bitcoin is currently priced below $57,000, indicating a period of consolidation before any significant upward movement. However, there’s optimism for the near future as the October-December quarter historically favors Bitcoin’s performance. If you have available funds, consider gradually investing in promising assets to take advantage of potential gains.
August was a disappointing month for crypto assets. In a typically positive/green month, Bitcoin was down 8.6%. As we head into September, a strong bearish outlook prevails in the market. Given September is usually a red month, traders are cautious about taking long positions in the current scenario. However, new opportunities arise when the market is bearish. Crypto should emerge out of macroeconomic and inflation-related fears in September with the possibility of US interest rate cuts.
Currently, Bitcoin is trading below $57,000 and looks to consolidate into a strong position before bullish action ensues. The good news is that additional pain will be short-lived as the October-December quarter is usually exceptional for the asset class. If you have spare cash to deploy, consider cost-averaging your buys into some of the promising assets.
In this article, we will explore some emerging narratives and identify potential crypto gems that could yield good returns in the coming months. Remember, the crypto market is inherently volatile, and it’s crucial to conduct your research and understand the risks associated with each investment.
Crypto Tracker
TOP COIN SETSBTC 50 :: ETH 50-7.82% BuyDeFi Tracker-8.15% BuyWeb3 Tracker-12.40% BuyAI Tracker-13.93% BuyNFT & Metaverse Tracker-14.25% BuyTOP COINS (₹) Solana11,176 (1.72%)BuyBitcoin4,802,854 (0.57%)BuyEthereum202,758 (0.45%)BuyTether84 (-0.18%)BuyBNB42,584 (-0.91%)Buy
New Layer 1s – AVAX, T and XDC (Medium to High Risk, Considerable Returns)
Layer 1 forms the backbone of Web3. Blockchains that deliver speed at scale have been sought after by Web3 enthusiasts for many use cases. We present three such solutions today.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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Avalanche (AVAX), a Layer-1 blockchain aiming to solve Ethereum’s scalability issues, has attracted significant attention with recent partnerships with major gaming projects. Backed by prominent investors and boasting high transaction speeds and low fees, AVAX holds strong potential. Last month, AVAX just had a huge token unlock of 9.5 million. It is set up to be bullish for some time as upcoming unlocks are comparatively small. AVAX is backed by Pantera Capital, a16z, and Coinbase Ventures. With a market cap of $8.6 billion, AVAX has a potential to do 6-8x over 12 months.
Aptos ( T) is layer 1 Proof-of-Stake (PoS) blockchain that employs a novel smart contract programming language called Move to bring mainstream adoption to Web3. With a substantial backing (a16z, Coinbase, Binance etc) and a growing DeFi TVL, T is worth considering. It’s notable that its DeFi TVL has grown by 375% in a year to $573 million. With a market cap of nearly $3 billion, T has potential to do a 8-10x over 12 months.
The XDC Network (XDC) is a blockchain developed to support trade finance and the tokenization of RWAs. A highly optimized, EVM-compatible Layer 1 blockchain, XDC Network reaches consensus through a delegated proof-of-stake (dPoS) mechanism. Its market cap is comparatively low ($390 million) and has room to grow 8-12x over 12 months.
Focus on Layer 2 – POL, MYRIA (Medium Risk, High Returns)
Polygon (POL) is one of the leading layer 2 solutions for Ethereum and is anticipating a big upgrade to its ecosystem this week. It’s introducing a AggLayer, which can solve the fragmented liquidity across many blockchains. As a first step towards this transformation, MATIC token is being migrated to POL token. This upgrade, coupled with its strong position as a leading Ethereum Layer-2 solution, makes POL a compelling prospect. MATIC has fallen out of top 20 crypto assets recently. However, we anticipate POL make a strong comeback. With a current market cap of $3.8 billion, POL can potentially do a 7-10x over next 12 months.
Myria (MYRIA) is building an L2 Gaming ecosystem to scale NFTs, blockchain gaming and more. It has partnered AB De Villiers and has launched a game called 360 Cricket. It has also partnered Neo Tokyo, a popular online community of Web3 founders. MYRIA is an ERC-20 utility token used for transactions on Myria’s Layer 2 scaling protocol. It claims to be lightning fast, with zero gas fees. However, token unlocks until 2027 can be a point of concern for market participants. MYRIA, with a market cap below $50 million, is a high-risk, high-reward play. It can potentially do a 10-12x over 12 months.
Ecosystem of the month – SUN (High Risk, Considerable Returns)
The SUN token powers SunSwap, Tron’s top DEX platform with a TVL close to $800 million and a daily volume of $200 million. It is collecting over $300,000in fees daily. The numbers indicate the growing Tron ecosystem. SUN has a buyback and burn mechanism, which can lead to reduced supply and potentially higher prices in the future. Concerns can be around Tron’s adoption over the long term. With a market cap of $280 million, SUN can potentially do an 8-12x over 12 months.
The OGs – BTC, ETH and SOL (Lowest Risk, Decent Returns)
It is prudent to pivot a majority of your crypto portfolio to the safest assets especially if a pullback occurs – Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). They are proven to enable adoption by new investors in the space. Their returns will be less significant (3-6x) but they drive the trend and volume in crypto.
(The author is CEO, Giottus Crypto Platform)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
