This past year has been extraordinary for the crypto market, with investor-driven demand pushing the prices of many altcoins and Bitcoin (CCC:BTC-USD) through the roof. The increase in the price of BTC, which now hovers at around $58,000, has been a catalyst for many cryptos. As a result, they’ve enjoyed double- or even triple-digit returns year-to-date (YTD). The poster child of this success, though, has been Dogecoin (CCC:DOGE-USD). Therefore, this article will discuss seven altcoins that could be the next DOGE.
While Bitcoin is an obvious choice for most crypto investors, others are looking for some cheaper yet promising altcoins to add to their portfolios. Dogecoin, for instance, started the year around $0.0047. Now, it is worth around 39 cents, showing a gain of almost 7000% YTD. Put another way, $1,000 invested in DOGE four months ago would now be worth around $70,000.
As digital money continues to go mainstream on the Street, more crypto assets are becoming available. If you are new to this world, you might want to think of them as peer-to-peer (P2P) payment platforms. Individuals or enterprises typically use these altcoins for different blockchain projects. But whether a given coin will catch investors’ attention depends on a variety of factors, from utility to potentially innovative technology. Recent research from Carnegie Mellon University highlights the following:
“Many alt-coins are forks of Bitcoin, inheriting many of its familiar and well-loved characteristics while adding a twist, whether it be in the cryptography or validation process. These new currencies created distinct ecosystems where developers can introduce completely new procedures.”
In Dogecoin’s case, it was set up by software engineers Billy Markus and Jackson Palmer as a payment system (and a meme) back in 2013. However, what really turbocharged the recent bull run in DOGE was the interest of Reddit traders. In addition, there has been celebrity support from folks like Elon Musk, the CEO of Tesla (NASDAQ:TSLA).
So, with this all in mind, here are seven altcoins that could gain traction in May:
Altcoins to Consider: Binance Coin (BNB-USD)
Current price: $661
52-week range: $14.28 – $664.18
Market capitalization: $100.8 billion
Binance’s cryptocurrency exchange went live back in 2017. It is now one of the largest crypto exchanges in the world. BNB is the “native coin of the Binance Chain,” the platform that its decentralized exchange operates on. Thus, it powers the Binance Ecosystem. It is essentially a “utility token” that provides traders with a discount when paying for fees on its own exchange.
BNB-USD is therefore growing alongside the exchange. Whenever there is a lot of volatility in the crypto market, investors flock to the Binance Exchange, sending the value of the crypto asset higher in the process. There are also various promos on Binance which have participants acquiring BNB. For many, an investment in Binance is easily justified based on increased trading and transactions at the exchange.
Nonetheless, the fact that BNB relies entirely on the Binance Exchange could also constitute an investment risk. If the exchange were to crash or become less popular among users, the coin’s value could easily fall.
As such, interested investors should do further due diligence to see whether an investment in BNB fits their objectives. Current investor sentiment will likely push the price of this altcoin higher, but who knows what the future holds.
Current price: $0.53
52-week range: $0.0074 – 0.834
Market cap: $2.98 billion
Next up on our list of altcoins and crypto names is Chiliz, which operates in the non-fungible token (NFT) space. Over the past several months, NFTs have become the latest cryptocurrency phenomenon hyped worldwide. These blockchain-based tokens act as certificates of ownership for virtual…