Cryptocurrency prices are experiencing a resurgence, with Bitcoin (BTC-USD) surpassing $30,000 for the first time since June 2022. Other cryptocurrencies like ether and crypto-related stocks like Coinbase (NASDAQ: COIN) have also seen positive momentum. Moreover, traditional financial institutions are increasingly venturing into the crypto space, with Nasdaq preparing to launch its own crypto custody platform.
That said, there are other cryptos that you should be watching in the next months of 2023. These projects possess a combination of factors that makes them suitable.
The first entrant on this list of cryptos to buy isn’t a crypto at all. Rather, Coinbase (NASDAQ:COIN) is the largest centralized cryptocurrency exchange in the U.S., often viewed as a way to play market-driven rallies in this sector.
Notably, Coinbase has been embroiled in a long-standing battle with the Securities and Exchange Commission (SEC) over whether digital assets constitutes securities. However, COIN stock is actually up considerably following a favorable Supreme Court ruling that allows Coinbase to resolve disputes through arbitration. This outcome benefits both Coinbase and the industry, as arbitration offers cost savings and efficient resolution of legal matters without prolonged court battles.
Coinbase’s CEO, Brian Armstrong, has also revealed a “super app” strategy for the company, aiming to transition from a centralized exchange to a decentralized mobile app. This strategy could take up to five years to implement and may involve leveraging the existing Coinbase Wallet to offer users a comprehensive platform to manage all their crypto and internet-related activities. Currently, the Coinbase Wallet primarily focuses on crypto-related functions like sending, receiving, buying, and selling digital assets.
Coinbase stock has surged 108% this year, driven by Bitcoin’s upward trend. Despite a high short interest of 19%, a potential short-squeeze rally looms if the bullish Bitcoin trend continues. While the cryptocurrency market is not as euphoric as in 2021, subdued trading activity impacts Coinbase. However, if the Bitcoin rally sustains and altcoins join the party, Coinbase’s outlook will be boosted.
Now into the crypto space. Ethereum (ETH-USD), the world’s second-largest cryptocurrency, is a major player in the billion-dollar market. It continues to attract developers, users, and investors with its robust platform and scaling solutions like rollups. Ethereum is also prioritizing security and future-proofing, exploring quantum-safe cryptography to mitigate potential risks down the line.
While Bitcoin functions primarily as a digital gold for storing value, Ethereum plays a broader role as a digital oil that fuels a larger system. It serves not only as a store of value but also powers operations like smart contracts and decentralized applications on its network.
Ethereum maintains its dominant position as the pioneering platform for smart contracts and dApp development. With the successful transition to a proof-of-stake consensus mechanism and additional upcoming updates, Ethereum has significantly boosted energy efficiency and strengthened its competitive advantage.
Solana (SOL-USD) is a strong competitor in the Web 3.0 blockchain space, often considered an “Ethereum killer.” While concerns about stability have existed, Solana has a renewed focus on addressing these issues, positioning it as a promising contender for substantial growth by 2025.
With its low fees, scalability, and interoperability, Solana has the potential to become a leader in decentralized finance (DeFi). It is also gaining market share in the non-fungible token (NFT) market. Once its stability concerns are resolved, more developers are likely to migrate to the platform.
Solana poses higher regulatory risks. It faced notable challenges due to its association with the FTX exchange’s meltdown and its reliance on venture capital for development. There are concerns about its classification as a security, which Solana argues against.
Despite these concerns, Solana stands out for its extensive blockchain ecosystem and leadership in areas such as NFTs and DeFi. It continues to expand its ecosystem, which includes the recent migration of Helium to the Solana blockchain.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.