These 2 Altcoins Are The Superstars Of The Market!

Consulting giant The Motley Fool made important statements for two altcoins today. Accordingly, there are detailed highlights for both AVAX and Polkadot. Let’s have a look at the details.

Two altcoins focused on proof of stake

Crypto staking is an increasingly popular way to generate passive income with proof-of-stake crypto. Ethereum, the most staked crypto in the world, can be a useful metric when deciding whether to stake a crypto. Currently, Avalanche and Polkadot offer higher stake rewards than Ethereum. They also make attractive options in an emerging market environment. If you are looking for new passive income streams, staking crypto is a new opportunity that is growing in popularity. Crypto staking is an easy process, a way to lock up your crypto in exchange for financial rewards. It is now possible to find the best cryptos with returns of 4% to 12% per year. Also, they’re all completely passive.

With that in mind, two altcoins in particular stand out. One of them is Avalanche (AVAX), which is currently yielding 7.56% on Coinbase Global. The other is Polkadot (DOT), which provides an even more attractive 9.77% return. By comparison, Ethereum only provides a 6% return. Other popular cryptos such as Solana and Cardano only offer 2% to 2.4% returns. Relatively speaking, Avalanche and Polkadot are the superstars of the market.

Ethereum as benchmark

Ethereum functions as a very useful market benchmark when it comes to staking. This is because Ethereum is the most staked cryptocurrency in the world. Because Ethereum is so popular, almost every major staking platform or exchange offers Ethereum as a staking option. That’s why it’s easy to make one-to-one comparisons.

A crypto that pays a higher stake reward than Ethereum does this for one of two reasons. It is either a much riskier or volatile investment. Accordingly, a higher rate is needed to persuade investors. Or a crypto that is booming in popularity. The higher rates are therefore the result of a new dynamic in supply and demand. Platforms are competing to offer you a higher rate to gain access to your cryptocurrency for a limited time.

Altcoin Avalanche offers staking income

cryptocoin.com As we mentioned, Avalanche is one of the best Layer 1 blockchain networks in the world. He once made a name for himself as the “Ethereum killer”. A faster, more scalable blockchain than Ethereum. It also offers access to every aspect of the blockchain world that Ethereum does, from immutable tokens (NFTs) to decentralized finance. Avalanche currently has a market cap of $5 billion. It is also ranked as one of the top 20 cryptocurrencies in the world. In January, Avalanche made headlines with news that it had entered into a partnership agreement with Amazon Web Services.

So far so good, right? We can easily say that the higher staking rewards paid for Avalanche reflect the high demand for Avalanche tokens. Perhaps the Amazon partnership is already starting to pay off for Avalanche. This hypothesis is embedded in the transaction activity that takes place on the Avalanche blockchain. It is also corroborated to some extent by recent metrics showing an explosion in user growth. However, you could easily argue that the higher stake rewards are due to the higher risk of investing in Avalanche. For example, in 2022, Avalanche lost more than 90% of its value, making it one of the worst performing cryptocurrencies in the world. So, if there is a downturn in the market, Avalanche will likely suffer harder losses than more established cryptocurrencies.

polkadot

Polkadot is among the top 20 cryptos with a market cap of $6 billion. But it’s likely that most investors haven’t heard of it. This is because altcoin Polkadot is primarily a “Layer Zero” blockchain that functions to interconnect smaller blockchains, making them interoperable. As such, Polkadot could play an important role in what has been called the “multi-chain future” of crypto, where all blockchains are interconnected and interoperable.

In terms of staking, one thing that’s appealing about altcoin Polkadot is that it’s a crypto token that you’d probably just buy and hold. It’s interesting to even consider locking up all of Polkadot and letting him win bounties in the background while he sleeps. Compare that to Ethereum, which has many more benefits. For example, if you lock up all of your Ethereum, you will have nothing left to make NFT purchases.

Avalanche or Polkadot?

It sounds very obvious. However, in order to stake a crypto, you must first own it. Therefore, before you start thinking about whether you should stake the altcoin Avalanche or Polkadot, you need to be open to the idea of ​​holding this crypto for weeks or even months at a time. If you’re already a long-term buy and hold investor, this won’t be a big deal. But remember: when you stake a crypto, it becomes “locked”. Also, you won’t be able to access it until the end of the staking period.

You are considering whether to stake altcoin Avalanche and altcoin Polkadot. It really depends on where you think the market will go in 2023. Both are interesting options if you think the market is going to be bullish. Because there is less risk of losing money from the cryptocurrency you stake. If the market is flat, then I think Polkadot is the best option. Because blockchain interoperability will still be a priority. And if the market goes bearish then I will try my luck on Ethereum. Accordingly, this situation is much more suitable for market declines than Avalanche or Polkadot.

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