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7 Cryptos to Watch as the Bulls Return to Blockchain

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7 Cryptos to Watch as the Bulls Return to Blockchain

With recent positive developments in the cryptocurrency industry, it is tempting for investors to pick individual cryptos for positive success. While bullish sentiment has undeniably entered the space – with the total market capitalization of all digital assets well above the critical $1 trillion mark – market participants need to remain objective.

While each boom-bust cycle has its own nuances, no asset sector rises or falls in a linear fashion. Indeed, bullish cycles often include healthy short-term corrections. This may be what is happening with cryptos right now.

However, keep the obvious point in mind: feeling surrender does not equate to true bottoming out. Additionally, given that the underlying fundamentals – high inflation and a Federal Reserve likely to aggressively push for monetary tightening – are troubling for cryptos, investors have plenty of reason to be cautious.

It’s not meant to scare people. Better to prepare for the worst than to be caught off guard. With that, here are the cryptos to watch this week.

Bitcoin (BTC)

Bitcoin tokens on a motherboard representing BTC.. Bitcoin price forecast.

Source: Momentum Fotograh / Shutterstock.com

Bitcoin (BTC-USD) recently benefited from encouraging headlines when the asset manager black rock (NYSE:noir) announced on launch of a private trust. This financial vehicle will hold the BTC and seek to track the performance of the asset. Further away, Coinbase (NASDAQ:PIECE OF MONEY) will serve as custodian of the trust.

Notably, in March of this year, “BlackRock Chairman and CEO Larry Fink wrote in its letter to shareholders that the Ukraine-Russia war could potentially accelerate the use of digital currencies,” by Yahoo finance. Over the past month, BTC has gained around 19%. Nevertheless, it is also worth mentioning that since the beginning of the year, BTC is down 55%.

Investors should recognize that 56% of BTC stakeholders are in the money at the current price. Therefore, as the digital asset grows, you should find this metric developing favorably.

However, you should also keep in mind that any shock event – ​​weakness in stocks, bad fundamental reports – could cause BTC to fall rapidly. Unfortunately, you simply cannot relax in this market.

Ethereum (ETH)

Another stylized version of the Ethereum logo

Source: Shutterstock

Ethereum (ETH-USD) is about to make a major breakthrough ahead of the merger. Essentially, developers run tests to ensure that the underlying network can handle the switch to proof of stake.

Scheduled to run in September, Ethereum’s pivot to the proof-of-stake consensus mechanism should allow its blockchain to run faster and more energy-efficiently. One of the main criticisms of cryptos is that the underlying mining process uses too much electricity. By Columbia Climate School, Bitcoin mining”consumes about 150 terawatt hours of electricity per year – more than the entire Argentine country, which has 45 million inhabitants.

Nevertheless, investors should be aware of the buy the rumour, sell the news phenomenon. In other words, if everyone is betting on the same horse, subsequent rewards will be extremely limited.

Tether (USDT)

A conceptual token for the Tether cryptocurrency.

Source: DIAMOND VISUALS / Shutterstock.com

With the advent of specialized cryptos such as Attached (USDT-USD) – a dollar-pegged stablecoin – blockchain investors benefit from options. For example, decentralized applications (dapps) allow everyday retail investors to earn rewards (interest) on their digital assets. A popular passive income mechanism is to lend out stablecoins like USDT for regular interest payments.

With rates that can go into the double digits, you cannot find a similar matching example in the fiat currency space. This is the beauty of cryptos. However, the downside of virtual currencies is that at any moment they can implode. Like the recent disaster involving Luna classic (LUNC-USD) demonstrated, the sector can be brutal and temperamental.

To be clear, I am not making a correlation between Tether and Terra Luna. One remains a viable project while the other struggles for a mere semblance of credibility.

Still, I strongly believe that the wise approach is to mitigate your exposure to all stablecoins. Have some fun cash in USDT if you want – I do – but leave your basic funds in cash.

Gimbal (ADA)

A concept coin for Cardano (ADA).  Cardano Price Predictions

Source: Shutterstock

The recent excitement surrounding Cardano stems from its leadership in proof-of-stake protocols. According to the project’s website, its blockchain platform is “the first to be based on peer-reviewed research and developed through evidence-based methods.

One of the implications of Ethereum’s move to the staking-based approach is that if the company fails, Cardano and others might be able to pick up the pieces. According to the Blockchain Council, while Ethereum presents a myriad of opportunities, several challenges exist. These include issues such as building a future-proof architecture and the growing dilemma of network backlogs.

Yet traders seem to have moved away from the above implications. Instead, they seem to buy the rumor and sell the news. According liquidity data from Coinpaprika.com, asks (sell orders) exceeded bids (buy orders).

Solana (SOL)

Abstract 3d render coin solana (SOL-USD)

Source: solvetv / Shutterstock.com

Another name among alternative cryptos that enjoys the spotlight of Ethereum is Solana (SOL-USD). As a competitor to Ethereum, SOL’s uptrend makes perfect sense.

Solana offers an offer many developers couldn’t refuse: speed, scalability, and security. Additionally, the platform ensures that transaction fees remain under a penny both for developers and users.

That’s the good news. Unfortunately with cryptos, the ebbs and flows of the industry don’t always follow logic. Worryingly, some technical analysts have called for a 35% correction in SOL price.

Interestingly, as for Cardano, Solana order book showed that requests outweighed offers over the weekend. Therefore, potential investors should carefully monitor SOL. A reduction may be forthcoming.

Peas (DOT)

Golden Polkadot (DOT-USD) dot coin cryptocurrency on computer electronic circuit board background

Source: Thichaa / Shutterstock.com

For those who have been following the latest iteration of cryptos, Spotted (USD-DOT) will sound familiar. Early 2021, Forbes wrote an article on Polkadot, stating that it was a Ethereum Killer. According to Coinspeaker.com, Polkadot order multiple benefits on other blockchain-based projects. These include interoperability, scalability, and the ability to create custom blockchains. Combined with rising Ethereum transaction fees (known as gas), many developers have seen a home in Polkadot.

Another distinct factor that sets the DOT network apart is sharing. According to Coinspeaker.com, “In a typical blockchain, validators need to validate every transaction. However, validation work is distributed in Polkadot, leaving each validator to focus on a set of parachains rather than all of them. In this context, parachains are called fragments.

However, as with other cryptos above, traders seem to be selling the news. As I write this, Polkadot’s order book shows that requests have exceeded offers. Therefore, corrective action this week would not be out of the question.

Shiba Inu (SHIB)

Concept of red tokens for Shiba Inu (SHIB) cryptocurrency.

Source: Shutterstock

While “serious” investors often reject shiba inus (SHIB-USD) jokingly, his recent momentum was no laughing matter. Over the past month, SHIB has gained more than 10%. Additionally, at the time of writing, Shiba is the 12th largest virtual currency.

Indeed, discussions on social media focus on how the SHIB has moved avalanche (AVAX-USD) for honor. Considering that many investors consider AVAX to be a serious crypto project, Shiba Inu’s success is no small feat. Still, it begs the question: how did SHIB get so big?

In my opinion, some advantages exist for SHIB that are not fundamentally correlated with other mainstream cryptos. For example, while it’s nice for blockchain projects to promote lofty goals, if they don’t achieve them, they risk a market correction. However, Shiba Inu are not trying to eradicate world hunger or cure cancer. Rather, it is a fun platform for speculation.

It’s silly but it works. And that is the strange beauty of Shiba Inu.

As of the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT and ADA. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to the investment markets, as well as various other industries including law, construction management and healthcare.

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