3 Blockchain Cryptocurrencies With Huge Upside Potential

Blockchain technology has transformed financial transactions, and the rapid rise of blockchain cryptocurrencies is remarkable. With its decentralized and secure nature, blockchain has become an ideal way to conduct financial transactions, leading to increasing demand for blockchain coins as more investors recognize the potential of blockchain investments.

With the world becoming more interconnected, the possibilities for blockchain growth are endless.

The technology has already significantly impacted various industries, including finance and healthcare, and has the potential for further innovation. With blockchain cryptocurrencies leading the way, the future of this technology is anyone’s guess.

Despite the industry’s evolution over the past 15 years, extreme volatility remains a significant problem in the cryptocurrency market.

High-profile failures, implosions and fraud have plagued digital assets, causing the market to lose 63% of its value in 2022 alone. The blockchain sector remains an exciting new frontier for investors.

Additionally, since the start of 2023, things have gotten relatively better in the crypto world. Several cryptos are finally showing signs of life, and investors are clamoring for a piece of the action. Due to high inflation and an aggressive Fed, people are turning to cryptocurrencies, once again, as a hedge.

If you are open to taking on a certain level of risk, now presents an opportunity to dive in and reap significant profits. Without further delay, let’s examine three cryptocurrencies that are exceptional buys.

Ethereum (ETH-USD)

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Ethereum’s (ETH-USD) platform makes it possible to build smart contracts and dApps without interference from third parties. Applications run without downtime or fraud.

The platform aims to offer decentralized financial products available globally. This feature is particularly attractive to those in countries without proper infrastructure or identification, who have access to bank accounts, loans, insurance and other products that were previously unavailable.

Ether, a platform-specific cryptographic token, powers applications on Ethereum. Ether is primarily used by developers who create and run applications on Ethereum. Investors can use Ether to buy other digital currencies.

Now, when investing in cryptocurrency, it’s all about timing. As of last update, Ethereum has risen nearly 52% since the beginning of the year, indicating an extremely robust performance. However, the token’s value has fallen more than 10% in the past seven days.

There is nothing specific that can be pointed to for this change in sentiment. Instead, after the Shappella upgrade, we see investors taking their profits.

The Shapella upgrade of the Ethereum network has attracted considerable anticipation, second only to the acclaimed Ethereum merger. It represents the ultimate phase that enables validators of Ethereum’s Proof-of-Stake (PoS) network to release ETH that was locked within a smart contract on the Ethereum Beacon Chain.

As a consequence, investors naturally drove up the stock’s value. However, sentiment has since moderated somewhat. Nevertheless, this provides an excellent opportunity to buy Ether at a significant discount.

Tether (USDT-USD)

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Tether (USDT-USD) is a popular stablecoin that pegs its value to an external reference point to reduce volatility.

Tether’s value is pegged to the US dollar, making transfers between traditional currency and cryptocurrency easier. Stablecoins like Tether aim to reduce the price volatility that often deters users from digital currencies like Bitcoin (BTC-USD).

Tether was launched in 2014 and aims to make it easier to use traditional currencies digitally through blockchain technology. This cryptocurrency provides individuals with a way to trade in fiat currencies with the benefits of blockchain while minimizing the volatility and complexity associated with other digital currencies.

Tether is managed by a company called Tether Limited, which is responsible for controlling the supply of Tether tokens, maintaining reserves to support its issuance, and ensuring a stable price.

Tether Limited has faced controversy, causing its price to drop to as low as $0.90. However, Tether has experienced fluctuations in value, at times above or below the $1 target.

Still, stablecoins like Tether can experience increased demand during market downturns, driving the price.

Polka Dot (DOT-USD)

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Polka dot (DOT-USD) is a cryptocurrency that connects different blockchains to establish a decentralized and interconnected ecosystem. The Web3 Foundation is responsible for the funding and development of Polkadot.

The vision of Web3 is to promote collaboration between blockchain-based technologies, to shift ownership from centralized organizations to content creators and consumers.

Polkadot has launched or is developing approximately 550 projects. Its main innovation lies in its ability to seamlessly connect different blockchains, allowing developers to create applications that interact with multiple blockchains.

Polkadot’s interconnection efforts are supported by the XCM communication standard, which was recently upgraded to version 3. This upgrade improves the decentralization and resilience of the Polkadot ecosystem.

Polkadots parachains offer a secure and adaptable environment for various projects, enabling the development of a wide range of use cases from DeFi to gaming. Moreover, the interconnected network of blockchains promotes the creation of a more inclusive and accessible Web3 ecosystem.

The potential for Polkadot to realize its vision of a connected, multi-chain future makes it an attractive investment opportunity. By eliminating network barriers, Polkadot aims to offer a seamless experience to users of Web3 in their daily lives.

Its cutting-edge technology, commitment to a secure and connected Web3, and ability to transform the internet make it a formidable player in the cryptocurrency world.

Done with this list, but want to continue reading about crypto? Well, fear not! Here are two excellent cryptocurrency articles for you to peruse.

At the date of publication, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.