The cryptocurrency market has enjoyed immense popularity ever since Bitcoin's success. Undoubtedly, Bitcoin has a huge trading volume and a global user base that has helped it soar to unprecedented heights. But that does not mean it is the only digital asset with growth potential. All cryptocurrencies other than Bitcoin are known as altcoins, and there is a good number of altcoins with high trading volumes, advanced network architectures, and planned future roadmaps.
Considering how volatile the cryptocurrency market is, investors are always keen on knowing which are the altcoins that trade extensively. Based on expert opinion, here are the top 5 cryptocurrencies to benefit the most from Bitcoin's growth.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap. It is both a blockchain platform and a cryptocurrency. Like BTC, ETH can be used as a store of value. Ether has worked on many drawbacks of Bitcoin and emerged as one of the best platforms for decentralized apps (dApps). It has become a developer favourite because it supports applications such as smart contracts, which automatically execute a function when specific conditions are met.
One of the most anticipated events among crypto investors is the launch of its PoS network. ‘The Merge’ will shift the network from proof-of-work (which Bitcoin uses) to proof-of-stake, making the network quicker, more scaleable, and more energy efficient.
Once The Merge is completed, ETH will shoot up in value even more. Thus we can say that it is one of the top 5 cryptocurrencies to benefit the most from Bitcoin's growth. It has followed a similar trajectory and is expected to surpass BTC as well.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cardano (ADA)
Cardano is considered one of the fastest-growing assets in the crypto sphere today. The crypto has a unique mission to build a financial operating system for the world. It was introduced as an “Ethereum killer” and a valuable alternative to Bitcoin. Charles Hoskinson, one of the co-founders of Ethereum, founded Cardano with the intent of being energy-efficient and supporting fast transactions with minimal transaction fees - improving upon Bitcoin and Ethereum.
Cardano's blockchain activities have increased tremendously over the years following the success of Bitcoin. It has gained more adoption with the launch of its long-awaited Alonzo upgrade. This has brought smart contracts to the blockchain, allowing developers to build dApps and enter the world of DeFi and NFTs.
Inspired by the growth of BTC and ETH, Cardano has over 450 projects in development on its platform and several projects due to launch in the first quarter of 2022. The crypto has also partnered with governments and organizations across the globe, adding ADA to the list of top 5 cryptocurrencies to benefit the most from Bitcoin's growth.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon (MATIC)
Polygon is yet another cryptocurrency benefitting from the growth of Bitcoin. The project aims to add interoperability and scalability to Bitcoin and Ethereum networks.
The network allows users to connect to Ethereum-compatible networks. Users can seamlessly create new chains, add them to the Ethereum chain and even create their own currencies. Polygon’s network allows users to take advantage of Bitcoin’s security while avoiding the expensive Ethereum gas fees.
So far, Polygon has allowed users to develop over 10,000 dApps, attracted over 130 million unique users, and enabled around 3 million daily transactions. Moreover, it made headlines in 2022 with the release of its “Green Manifesto,” pledging to make its blockchain universe more environmentally friendly.
The team has also planned to invest in cutting-edge zero-knowledge (ZK) technology, which is crucial to onboard the next billion users to Web 3.0. This commitment to sustainability and its future plans has put Polygon at the forefront of responsible blockchain development, making MATIC one of the top altcoins in the market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Solana (SOL)
SOL saw tremendous growth in its price last year, and analysis shows that the coin is all set for its massive rally in 2022. Improving upon Bitcoin's PoW mechanism, Solana employs a unique Proof-of-History (PoH) algorithm that allows the blockchain to operate quickly, maintaining security and decentralization. Thanks to this mechanism, Solana can process over 250,000 transactions a second, marking it a viable competitor to Ethereum (ETH).
Moreover, Solana’s ecosystem covers several lending protocols, DeFi projects, NFT marketplaces, Web3 Apps, and decentralized exchange (DEX) projects, making it a top choice for developers.
Solana has retained the good aspects of Bitcoin and improved upon the questionable ones. In this way, SOL is one of the top cryptocurrencies to benefit the most from Bitcoin's growth. Recently, the platform announced that the Solana Hacker House World Tour would be making a comeback in new cities globally, including London, Tokyo, and Barcelona, fueling SOL’s popularity globally.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Uniswap (UNI)
Inspired by Bitcoin's decentralization and growth, Uniswap operates on a decentralized P2P exchange automated market maker protocol (AMM), enabling the trade of crypto assets. The rise of digital assets like Bitcoin and the need to store them paved the way for Uniswap. For those who believe in the future of DeFi, Uniswap could be the top cryptocurrency to invest in now.
Uniswap has always been consistent with its upgrades, the latest being Version 3. Uniswap Version 3 provides up to 4,000 times capital efficiency. The upgrade came into effect during Ethereum’s mainnet launch.
Moreover, the platform has also announced the launch of the Swap Widget. Any website can embed its Swap Widget and see users access the platform’s features. This allows websites to easily enable access to Uniswap functionality by simply pasting a line of computer code.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bottomline
As the premier crypto, Bitcoin continues to shape the industry. The above-listed coins are the top 5 cryptocurrencies that benefit the most from Bitcoin and are solid investment opportunities.
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