The majority of popular asset types did not fare well in 2022. The conservative "60/40" portfolio of equities and bonds had its worst year since 2008 as a result of the simultaneous declines in stocks and bonds. Yet among all asset classes, cryptocurrencies suffered the most damage, with a total market value that fell by more than 63% over the year, from nearly $2.2 trillion to less than $800 billion.
However, as blockchain bounces back in 2023, here is a list of 5 comeback cryptos to buy before they soar again to stay ahead of the curve.
Ethereum (ETH)
The No. 2 cryptocurrency by market cap, after Bitcoin, is Ether, the native token on the widely used Ethereum blockchain. Often colloquially referred to as Ethereum, the coin's market cap exceeds $150 billion and accounts for over 15% of the total cryptocurrency market.
Unlike Bitcoin, Ether's underlying network is far more than just a tool for peer-to-peer payments; the Ethereum blockchain is custom-made for smart contracts and decentralized finance tools, as well as for so-called Web 3.0, or Web3, applications and the trading of non-fungible tokens, or NFTs.
While Ether's price was hammered alongside the rest of the market in 2022 – ETH lost more than 67% of its value last year – the crypto nonetheless still has high utility as the native token of a wildly popular network. Plus, Ethereum's switch from the energy-inefficient, proof-of-work protocol to the much more efficient proof-of-stake system gives it a leg up on BTC in an increasingly environmentally conscious world.
These factors make ETH one of the top comeback cryptos to buy before they soar again in 2023.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cardano (ADA)
Founded in 2017 by Ethereum co-founder Charles Hoskinson, Cardano is a proof-of-stake blockchain and one of the largest blockchains to run the more energy-efficient proof-of-stake protocol successfully.
Cardano aims to foster a developer-friendly ecosystem for dApps. Unlike Ethereum, Cardano has a hard cap on the number of coins that can ever exist, topping out at 45 billion. Thankfully for investors, more than 34.5 billion, or about 77%, of that supply is already in circulation, meaning the amount of overall dilution remaining is both known and relatively limited. One of the best cryptocurrencies to buy now, Cardano shed 81% in 2022, but it traded roughly even with its price just two short years ago.
ADA is one of the most valued cryptocurrencies and is expected to rally in 2023, making it one of the top 5 comeback cryptos to buy now before they soar again in 2023.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ripple (XRP)
XRP is the native cryptocurrency for Ripple, a payment protocol that uses blockchain technology for fast, inexpensive transactions. The network was designed to facilitate international transfers, and it has partnered with hundreds of financial institutions that use its technology.
Thanks to its fast speeds and high safety, XRP leads the business world of DeFi (decentralized finance), as it can make payments without getting permission from anyone. Therefore the XRP token is considered to be a quick way to move money.
Ripple has been around since 2012, but it became embroiled in a Securities and Exchange Commission lawsuit at the end of 2020. That prompted most of the major U.S. crypto exchanges to delist XRP.
Ripple may have started to come back, and many investors are paying attention to it. This could be because the Ripple vs. SEC case is now drawing to an end. Many XRP holders are positive that Ripple will emerge victorious in the case, which will drive up its price. Therefore, XRP is one of the top comeback cryptos worth buying in 2023.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Chainlink (LINK)
Chainlink (LINK) is a blockchain abstraction layer that acts as a distributed network of oracles. The LINK tokens power the network operation, and the crypto enables smart contracts to be globally connected in order to increase blockchain performance.
It uses secure oracles to link smart contracts to real-world data, activities, payments, and off-chain computing in a highly tamper-resistant and reliable way.
The Chainlink Network focuses on growing its open-source community and guaranteeing decentralized participation to all data providers, node operators, smart contract developers, researchers, and security auditors. To participate as an oracle node operator on the network, one must stake LINK tokens. People in charge of the decentralized network’s information infrastructure can earn money and contribute to this crypto’s success.
Without Chainlink, smart contracts would be isolated, and they would never be able to reach their full potential nor communicate with other chains and contracts, so the importance of this project is clear from the start. LINK has shown historic gains in the past and is expected to make a big comeback in 2023.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Avalanche (AVAX)
Avalanche (AVAX) is quite similar to Ethereum as it is a proof-of-stake project with smart contract functionality. The three Avalanche blockchains [Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain)] can process around 6,500 transactions per second compared to Ethereum’s 13.
Unfortunately, the Avalanche project sacrifices stability for its high TPS count. In Feb. 2021, the platform was crippled due to high traffic, which sparked a selloff of the AVAX token. However, the bug was fixed, and it reached a new high in the same year. This indicates that the Avalanche community retains its faith in the project, and AVAX could soar in the next cycle.
So far, it hasn’t had much success contesting Ethereum’s dominance in decentralized applications (dApps) or non-fungible tokens (NFTs). But that could soon change as the project regains trust and the Ethereum blockchain becomes more congested in the next cycle.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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