The top 3 altcoins with a strong fundamental

Many investors who harbor hopes to invest money into the sector of the cryptocurrency industry know that data analysis should be done to choose your asset. One of the most important factors when choosing a crypto to invest your money into is a fundamental basis.

What is fundamental?

Fundamental analysis is the analysis of various factors that reflect the real value of an altcoin. For example, if we deal with any random meme token, it will be existing and develop till it is interesting for people. As soon as interest disappears, the value of a token will be lost because it has no meaning and its project does not carry any ideas. It is worth noting that the founders of such crypto tokens can believe in the opposite.

In the sphere of regular trading, fundamental analysis usually pays attention to production indicators, profit, turnover, and other points, but all are different in the crypto world.

Dealing with digital assets, first of all, we are interested in the number of investors involved in the asset. The more of them we have, the bigger the number in the “turnover” column and the less volatility will be. At the same time, it is not worth looking for big multipliers in such assets.

The second thing we are interested in during the fundamental analysis is an idea of a project and the technical part of its realization.

The intentions of developers

It is worth staying away from promises like “the first unique payment system solution in the world that has never been realized before”. According to developers, it will definitely change the world and turn it into a utopia but, in fact, actions and the development of a project frequently do not meet what is said in the road map. It means that the developers exaggerate their ambitions and the project is probably not worth your attention and investing your money.

On the other hand, there is a more successful example when developers try to be useful for the world of digital assets with their projects. For example, Litecoin. It appeared in October 2011 when the term “altcoin” was just at the dawn of its existence and was not widespread. Litecoin is a fork of Bitcoin, however, due to its technical features, the cryptocurrency was considered to be a payment instrument that can be actively exchanged by people. Soon, Litecoin became so popular that it received the status of “digital silver” and was some sort of a competitor to Bitcoin, which holds the title of “digital gold”.

“The killers of Ethereum”

Today, developing the topic of technical capabilities and fundamental basics when choosing tokens to invest into, we will talk about why Cardano (ADA), Avalanche (AVAX), and Solana (SOL) deserve to be called digital assets with a good fundamental.

The year 2023 started with good growth for many coins but Cardano, Avalanche, and Solano should be noted especially. These three are called “the killers of Ethereum'' and there can be some truth because their usefulness might make the developers of the main altchain nervous. Potential investors already know this, due to which this trio of coins has received a good boost.

Ethereum is definitely the main altcoin in the world of cryptography. In this blockchain, there is a developed industry of NFT tokens and the so-called “blue chips” of the world of the non-fungible token collections circulating in Ethereum. Bored Ape Yacht Club, Crypto Punks, Mutant Ape Yacht Club — all these collections exist thanks to ETH and their regular sales and colossal prices help to hold interest in these collections and, respectively, Ethereum.

Of course, there are NFT sets in other blockchains, however, none of them can compete with collections on Ethereum in terms of success. But the price for owning these tokens is too high. The thing is not just that the price of such tokens is high but the transaction commission is extremely big. For comparison, the commission amounted to a few dollars in the recently-fixed Bitcoin transaction of $250,000,000, while it can reach a few dozen of bucks in Ethereum. Besides, ETH transactions are pretty slow, which is frequently discussed in the cryptocurrency community.

The blockchains made on Ethereum provide users with a good alternative in terms of low commission and high speed of transactions, which makes them a more profitable solution compared to Ethereum.

Cardano

Cardano (ADA) has the biggest market capitalization among these three “killers of Ethereum” and places 8th on the list of all existing crypto assets with the highest capitalization at the moment of writing. It is equal to $11,500,000,000 and the price of one Cardano token amounts to $0,33.

The main feature of Cardan is a mechanism of the consensus between Ouroboros and the cross-chain algorithm Proof-of-Stake. The algorithm Proof-of-Work requires users to have cryptocurrency assets and transactions are carried out by checking all nodes in the network. Proof-of-Stake, in turn, checks every transaction with the help of not all nodes but a random network. It impacts the scalability of the project and helps to expand the Cardano network.

The price of ADA has recently increased significantly due to following the market. In the second week of January, Bitcoin started demonstrating a strong bullish sentiment, which affected not only the flagship cryptocurrency but many other digital assets. Unlike many competitors, ADA has grown by not 20% or 30% but 40%+. Besides, the market has a positive sentiment, the character of Cardano and the advantages of this network have done their business. The developers of Ada introduced new functions that improve the user experience of this blockchain. The growth of the token was influenced by the high activity of users with bigger attention from investors. It is not worth forgetting that more and more projects that have their decentralized applications appear on Cardano. In such a way, considering all the above-mentioned arguments, it is not surprising that ADA has overcome many competitors in terms of the growth rate this year.

Speaking about the competitiveness of Cardano, the developers of the blockchain have proved that ADA can provide truly effective solutions that will ease the life of any cryptocurrency fan.

Avalanche

At the moment of writing the material, AVAX enters the top twenty cryptocurrencies with the biggest capitalization and holds 17th place with the mark of $5,000,000,000. Because there are way fewer Avalanche tokens than in the case of Cardano, the price of coins is way higher. One AVAX is equal to $16.

Regarding technical moments, Avalanche is famous for its subnetwork called Avalanche-X. It allows guaranteeing AVAX a high level of scalability with the help of controlling a few subnetworks at the same time. Each of them has various configurations of solutions and management protocols. In the case of Ethereum, verification of all network nodes is necessary to confirm a transaction, Cardano solved this issue by choosing random nodes but AVAX approached this issue more creatively. Each subnetwork has various groups of nodes that are connected and work to provide a high speed of transaction processing.

The remarkable thing is that, unlike many cryptocurrency assets, Avalanche relies on community activity. The administration of the project made a few important steps in 2022 that did not just help the project to stay afloat after the collapse of Terra but increased its influence on the world of the crypto market. It became possible partly thanks to the active cooperation between the developers and the community.

Such advantages will attract more attention from investors, which, actually, happened at the beginning of 2023. In a pretty short term, Avalanche managed to increase its capitalization by 54%, which is a colossal result for sure.

Solana

Solana is a project that competes with Polygon for a spot in the top 10 digital assets with the biggest level of capitalization. At the moment, it is equal to $8,000,000,000 and the price of one coin amounts to $21,55.

Unlike other assets that use only one algorithm of proof, whether it is Proof-of-Work or Proof-of-Stake, the developers of SOL thought that it is not worth limiting to one option and paid attention to another less popular algorithm — Proof-of-History. Thanks to this, Solana uses the hybrid consensus that combines proof of stake and history. The last one is a method of confirming a transaction by creating a historical record at the right time. Considering that Proof-of-History is the least expensive and less demanding resource due to the absence of the necessity to be checked by each node, the transaction speed in the Solana network is pretty high, to say the least.

In terms of the growth of capitalization, Solana has become the leader among the three tokens mentioned today. Since the beginning of the year, it has grown by 139%. While the majority of coins in the cryptocurrency market are having not the best time due to the collapse of FTX, Solana instead managed to attract a lot of attention from investors.

The developers have also pleased the owners of SOL with their intentions to make a few changes that will support the further development and scalability of the network. Besides, the developers want to get rid of downtime that could be noticed in the past year. All of this reflects that Solana might attract even more users, investors, and, as a result, money soon.

Conclusion

Cardano, Avalanche, and Solana are undoubtedly good coins with strong fundamentals. If you are the type of investor who builds his crypto investment portfolio of different coins but you do not have these three tokens, you should probably think about it and change your decision, adding ADA, AVAX, and SOL to it.

However, you should not forget about all the risks that exist on the market.