3 Cryptocurrencies To Watch In The Coming Week – ADA, ETH, and XLM
With prices soaring sky-high, cryptocurrencies are becoming one of the biggest financial stories of the year so far. Retail and institutional investors are decisively considering cryptocurrencies as an alternative asset class to traditional systems. The recent crypto market rally shows that altcoins and other crypto tokens will continue to rise in the coming decades and shows no sign of stopping.
However, with all the options available in the market, investors might be curious to know the tokens that are worth keeping an eye on right now. We have done the heavy lifting here and consolidated a list of 3 cryptocurrencies to watch in the coming week with solid reasons to back up their claim-to-fame.
3 Cryptocurrencies To Watch In The Coming Week
#1 Cardano (ADA)
Cardano, the decentralized Proof-of-Stake public blockchain and cryptocurrency project, has now turned into a multi-asset blockchain in the market. The native crypto token of the Cardano network, ADA, is positioned as the 5th largest cryptocurrency with a market cap of $39,897,938,975 as of writing.
Cardano is a third-gen cryptocurrency that is a public blockchain and decentralized application (dApp) development platform. The virtual currency ADA was meant to rectify the inefficiencies created by first and second-generation cryptos and build more use cases. Cardano thus employs new developments like layered architecture to enhance security, scalability, and sustainability. Moreover, Cardano’s Ouroboros Proof-of-Stake algorithm is 20,000 times more efficient than Bitcoin’s mining system, making it more energy-efficient and environmentally friendly.
Cardano is one of the 3 cryptocurrencies to watch in the coming weeks as it is implementing the highly anticipated smart contract functionality. These smart contracts allow developers to build applications on top of the blockchain networks, such as Ethereum’s Uniswap decentralized exchange (DEX).
Finally, IOHK, the company behind Cardano, announced on April 29 that its blockchain technology will be used to revamp Ethiopia’s education system. The technology will create a tamper-proof system for recording information accurately. This will also provide the Cardano network a real-world use case boosting its adoption.
Check Out: Will Cardano Make Me Rich in 10 Years?
#2 Ethereum (ETH)
The rising popularity of non-fungible tokens (NFT) and its upcoming blockchain upgrades have significantly fueled the parabolic moves in Ethereum. Yet another catalyst behind the recent surge of Ethereum is the growing use of the platform in decentralized finance (DeFi) applications.
With a significant bullish rally, the price of Ether, the native cryptocurrency of the Ethereum blockchain, has crossed a mark of $4000 for the first time, marking a record high on May 12, 2021. As of writing, the token is trading at $2,030.30 and is expected to rise in the coming days.
Moreover, the asset manager VanEck recently applied to launch an exchange-traded fund (ETF) known as VanEck Ethereum Trust to track Ether’s price performance, according to an SEC filing. Once approved, it would be the first Ethereum ETF in the U.S, sending ETH prices to the moon.
A significant part of Ethereum’s price surge comes from its increasing institutional adoption. For instance, the European Investment Bank has issued a two-year EUR 100 million digital bond on the Ethereum blockchain, collaborating with Goldman Sachs, Santander, and Societe Generale. Moreover, with the launch of CME Ether futures contracts, institutional investors can have seamless access to a regulated market. It offers exposure to all the price movements and other prominent details without the need to handle the digital asset.
And finally, the main reason Ethereum is one of the cryptocurrencies to watch in the coming week is its scheduled Ethereum 2.0 update. The much-awaited update has been scheduled for this year, and the transition from Proof-of-Work to Proof-of-Stake protocol will make the network more scalable, secure, energy-efficient, and sustainable.
Even after the recent price drop, Ethereum is the largest and the go-to blockchain for DeFi. Needless to say, Ethereum’s price spike is a positive signal of blockchain-based applications being acknowledged and adopted worldwide.
Don't Miss: Ethereum Price Predictions
#3 Stellar Lumens (XLM)
Stellar Lumens is a unique payment technology that is designed to ease global money transfers with a blockchain software platform. The network tackles spam by deploying the Lumen token to pay transaction fees. It also acts as a bridge currency providing liquidity to assets issued by anchors (trusted entities on the network).
Stellar Lumens or XLM is the native currency of the decentralized platform Stellar. The primary goal of creating Lumens was to address the scalability issue associated with blockchain technology. It aims to connect financial institutions through its blockchain with relatively low transaction fees and faster processing speed.
Stellar is known for its high transaction speed. The network is capable of running over 1000 to 5000 transactions per second. That is 100 to 500 times better than Bitcoin and over 50 to 250 times faster than Ethereum. Therefore, the foundation of the Stellar platform is that users can process fast, secure, and highly cost-effective payments between multiple currency pairs.
The Stellar Foundation earlier this year invested in a Nigerian fintech company based in London. Also, it has deposited $3 million in a U.S based fintech platform, the Tribal Credit. Finally, $5 million was invested in Wyre, a fintech applications company on the Stellar network.
Apart from all this, the Stellar Network has also joined several strong partnerships with established institutions in the market. Two such prominent coalitions are by the Ukraine government and the European-based real-estate company Vonovia. Ukraine's government has chosen the Stellar blockchain network as a platform for building a Central Bank Digital Currency (CBDC). This has boosted the price of XLM to over 75%. Additionally, Stellar has partnered with Vonovia later this month with a mission to push its blockchain adoption.
There has been a prolific increase in the price of XLM in February. The primary fuel behind this growth was the investments made by Grayscale, who is the pioneer in developing trust and funds. The crypto giant has purchased almost 6,568,516 XLM, driving its price to the moon. Moreover, it has also added a new trust named the Stellar Lumens Trust to its ever-expanding assets.
Read Also: Pros and Cons of Investing in Stellar
Today, we cannot ignore the enviable popularity, market supremacy, and rising interest in the cryptocurrency ecosystem. Given the recent market scenario, cryptocurrencies show no sign of decline in their growth even in the near future. If you plan to build your investment portfolio, these 3 cryptocurrencies listed above are worth watching in the coming week.
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