The leading cryptocurrency Bitcoin stands out for its exceptional durability during a series of bear markets. Ethereum has a well-diversified ecosystem that should help it withstand prolonged market downturns. Cardano, on the other hand, has a stable, peer-reviewed approach that ensures it can be built in any market environment. Consulting giant Motley Foll crypto expert Dominic Basulto is considering three cryptocurrencies for bear markets.
3 cryptocurrencies that can make interesting moves during the bear market
Bitcoin, Ethereum and Cardano are three cryptocurrencies that can not only survive but thrive during a bear market. cryptocoin.comIn 2022, investors watched in horror as the value of cryptocurrencies returned to the earth from the moon. By the end of the year, the entire market cap of the crypto market had dropped below $1 trillion. That means more than $2 trillion was wiped out during the year. Worse still, these losses were overall, as nearly every cryptocurrency ended the year in the red. That said, there are a handful of cryptocurrencies that could make interesting moves during a bear market. At the top of the list are Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).
The leading cryptocurrency Bitcoin (BTC) is in the first place.
The largest crypto by market capitalization, Bitcoin has become a favorite crypto asset to buy for both individual and institutional investors. This is partly due to the truly amazing returns on investment. In the 10-year period from 2011-2021, Bitcoin was the world’s best performing asset. No one even came close to him.
Past performance is no guarantee of future results. That kind of success, however, is hard to argue with over a long period of time. The hope, frankly, is that last year was just a temporary setback. After all, Bitcoin has had a strong track record of reversing from previous market dips. Since its launch in 2009, Bitcoin has experienced several different bear market crashes and has come out healthier each time. Moreover, two more years of Bitcoin (2014 and 2018) were just as bad as the year investors experienced last year. That’s why there’s a lot to love about Bitcoin’s durability. Meanwhile, in 2014 Bitcoin fell 58% and in 2018 Bitcoin fell 73%.
Another factor in Bitcoin’s favor includes the increasing pace of its global adoption. This helps provide significant diversification. For example, the US market may be falling, but other markets around the world may be rising as well. Since El Salvador made Bitcoin a legal tender in 2021, countries around the world have explored how Bitcoin adoption can spur future growth. For example, in December 2022, Brazil announced comprehensive new Bitcoin law that clearly defines how this cryptocurrency can be used for both online payments and investments.
The leading altcoin Ethereum (ETH) comes in second place.
Just like Bitcoin, Ethereum has recovered from market dips since its launch in 2015. Ethereum is the world’s second leading cryptocurrency and Blockchain by market cap. It is increasingly being integrated into the technology stacks of large corporations around the world, from Wall Street to Main Street. While banks on Wall Street are discovering new products and services based on Ethereum, consumer brands are using Ethereum for new marketing promotions featuring Non-Fungible Tokens (NFTs).
Now that Ethereum has migrated to a PoS Blockchain with The Merge, it’s faster and more efficient. This important new upgrade will continue to support the growth of the world’s most vibrant crypto ecosystem, which includes decentralized applications, smart contracts and tokens. Ethereum is the market leader in key blockchain niches such as NFTs, decentralized finance (DeFi), and the metaverse. This provides an important diversification advantage. Because Ethereum, unlike many other cryptos, is not a one-rigged pony. Investors should consider the value of this broader ecosystem when arriving at a valuation for Ethereum.
Cadano (ADA) the latest cryptocurrency for the bear market
Finally, there is Cardano, which is firmly established as one of the top 10 cryptocurrencies by market cap. Similar to Ethereum, Cardano is a Layer-1 Blockchain that offers smart contract functionality. As a result, the same kind of diversified ecosystem that exists for Ethereum is also available for Cardano, albeit on a smaller scale. Considering that one of the founders of Ethereum, Charles Hoskinson, is the founder of Cardano, this may not be too surprising.
In 2022, Cardano was ranked as the best Blockchain in terms of development effectiveness. It also has one of the largest developer communities in the world. Moreover, it has a peer-reviewed approach to Blockchain development that ensures that any changes or upgrades to the Blockchain are rigorously tested and reviewed. While this sometimes slows down the rollout of new offerings, it does protect Cardano from the typical pitfalls experienced by other blockchains trying to grow fast.
Given this strong foundation, Cardano is exactly the type of crypto that will continue to thrive during a bear market. Cardano’s vision is to be the world’s best Blockchain for the unbanked. In addition, Blockchain stands out with its work to support growth in emerging markets such as Africa.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.