It is quite difficult to pinpoint one exact cryptocurrency that will rise in 2023 but what we can do is highlight several that are likely to show the most potential during the year. Therefore, the list that we have provided below could be worth looking into if you are considering investing in cryptocurrency.
1. Avalanche
Ethereum, known for its innovation and strong performance, has established itself as a leader in the decentralised application (dApp) development space. With a robust network that is home to the majority of dApp development, Ethereum has generated $3.8 billion in dApp protocol revenue over the past year, far outpacing its closest competitor, according to data from TokenTerminal.com. However, a new player in the field, Avalanche, may present a stronger option for dApp developers.
Avalanche’s network boasts significantly faster speeds than Ethereum and Bitcoin, with the ability to process over 4,500 transactions per second. Additionally, Avalanche’s compatibility with the Ethereum Virtual Machine (EVM) allows for familiar dApp development tools, but with lower transaction costs and faster completion times. With $96.1 million in dApp protocol revenue over the past year, Avalanche is still trailing Ethereum in terms of revenue, but its faster and more cost-effective network could lead to a tripling of its value in 2023.
2. Algorand
Algorand (ALGO 0.21%) is another cryptocurrency that has the potential to deliver significant returns to investors in 2023. The project, like Avalanche, is focused on decentralised finance (DeFi) and decentralised application (dApp) development.
One of Algorand’s key competitive advantages is its speed, with a throughput of approximately 6,000 transactions per second and a block finality of a few seconds. This makes it a highly efficient and expansive layer-1 blockchain that can handle a large volume of transactions and validate them almost instantly.
Another major differentiator for Algorand is its focus on interoperability. Unlike other blockchain networks that operate in isolation, Algorand aims to act as a bridge between various projects, providing a way for different blockchains to interact with each other.
In addition, Algorand has adopted a unique consensus mechanism, called pure proof of stake (PPoS), which is designed to enhance security, scalability, and decentralisation. Under PPoS, holders of ALGO tokens are chosen at random to vote on proposals and create new blocks, thus ensuring a highly secure and decentralised network.
3. IOTA
A lesser-known digital currency that has the potential to bring significant returns to investors in 2023 is IOTA (MIOTA). Unlike many other cryptocurrency projects, IOTA utilises a unique consensus algorithm known as the “Tangle” which is a decentralised acyclic graph, rather than traditional blockchain technology. This allows for faster transaction finality and scalability that improves with each payment.
One of the key advantages of IOTA is its ability to facilitate payments from Internet-of-Things (IoT) devices. The Tangle’s design allows for feeless transactions, making it a highly attractive option for IoT devices that require low-cost and efficient payment solutions.
What sets IOTA apart from other digital currencies is its scalability and efficiency. Traditional blockchain networks can suffer from slow transaction times and high fees, but the Tangle’s design does not have these same constraints. As more and more IoT devices are integrated into our daily lives, IOTA’s unique features could make it a go-to payment solution in the future.
4. Stellar
The fourth and final cryptocurrency that has the potential to triple your money in 2023 is Stellar (XLM -0.04%). Despite being a blockchain-based payment network, Stellar’s Lumen token (XLM) has the potential to soar this year due to its outstanding advantages over other payment networks.
One of the primary goals of blockchain technology is to eliminate the slow and costly process of traditional payments. With Stellar, sending money overseas is not only faster but also cheaper. Transactions can be completed and settled in as little as five seconds, without having to pay exorbitant fees. The average transaction fee on the Stellar network is a mere 0.00001 XLM, which at current prices, is equivalent to $0.00000072.
Not only is the network cheap to use, but it is also highly efficient, with the ability to handle more than 1,000 TPS. A 2022 research report by ForexSuggest.com found that Stellar was the leading network in terms of transactions per day, completing nearly six times as many transactions daily as Ethereum, and more than 32 times as many each day as Bitcoin.
This data suggests that the Stellar network has the potential to become a mainstream payment solution in the future. With additional partnerships in 2023, the value of the Lumen token could see a significant increase, potentially resulting in a 200% or greater gain for investors.
It is looking as though 2023 could be another exciting year in the crypto sphere and these four crypto currencies could be worth keeping an eye on. As always, research is key before investing as this will ensure you make an informed decision.
5. Bitcoin
Bitcoin, the world’s first decentralized cryptocurrency, has been gaining widespread recognition and attention in recent years due to its potential as an investment opportunity. There are several reasons why Bitcoin is likely to increase in price in the future.
Firstly, the limited supply of Bitcoin, with a maximum of 21 million coins, is expected to drive up demand and increase its value over time.
Secondly, Bitcoin’s decentralized nature eliminates the need for intermediaries and offers increased security, privacy, and transparency. As more individuals and organizations adopt Bitcoin and other cryptocurrencies, the demand for Bitcoin is likely to rise, leading to an increase in its price.
Additionally, the increasing institutional interest and investment in Bitcoin is also contributing to its growing popularity and increasing value. Furthermore, as the world becomes increasingly digitized and the demand for digital assets increases, the adoption of Bitcoin is expected to continue to grow, leading to a potential increase in its price.
In conclusion, due to its limited supply, decentralized nature, increasing adoption and institutional investment, Bitcoin is likely to increase in price in 2023
