Take a closer look at the cryptocurrency market if you believe the stock market has made significant progress since the March 2020 pandemic lows. While the S&P 500 index has increased by close to 100% in two years, the aggregate price of digital currencies has increased by more than $2 trillion during the same period, implying an increase of 1,430 percent!
Bitcoin and Ethereum ( ETH -2.79%) have received a lot of praise for this more than $2 trillion dollar increase, as you might expect. It’s lesser-known coins such as Shiba Inu that have been generating buzz in the cryptomarket throughout much of 2018 ( SHIB -4.49%).
Instead of putting your money into SHIB, which has effectively become a buzz-driven meme token with no real competitive advantages, the next two cryptocurrencies on this list, which offer genuine competitive advantages and distinction, would be far better investments.
In April, the first cryptocurrency investors can buy rather than a Shiba Inu is Algorand (ALGO-3.86 percent). The Protocol token ALGO ranks 28th in market capitalization ($6.4 billion).
Algorand stands out among a sea of payment coins and failed blockchain projects for a variety of reasons. To start with, Algorand’s blockchain is faster and more scalable than most others. The typical time to block finality (i.e., how long the transactions take) is about 4.4 seconds, with the project’s website claiming that transactions per second (TPS) are over 1,100 late last year. When compared to traditional currencies, Algorand has far superior transaction processing speeds. Bitcoin and Ethereum take around 60 minutes and six minutes to finish a block, and they could only handle seven and 14 TPS, respectively. It is no surprise that Algorand claims to be the future of decentralized finance.
Algorand’s blockchain offers a higher degree of security than most proof-of-stake (PoS) consensus systems. PPoS is used by Algorand, which relies on the pure proof-of-stake procedure. It’s possible for little stakeholders to disrupt the network with PoS. This is virtually impossible using PoS since small holders will have an incentive to see the success of the project.
Algorand’s developers are also committed to interoperability. The aim is for there to be a slew of blockchain-driven projects all around the world. While some of the blockchain networks might work together, others will not. Algorand is dedicated to assisting businesses in crossing these gaps so that blockchain-based financial solutions will be able to become more widespread.
There are several major advantages and distinctions to what Algorand offers, making it a far more attractive investment proposition than Shiba Inu.
The second cryptocurrency to purchase in April was Avalanche ( AVAX -3.93% ), which is the seventh cryptocurrency by market cap and the ninth most valuable digital currency.
When there are over 18,000 cryptos (and growing), it’s important that projects provide well-defined competitive advantages and long-term distinction. Avalanche delivers this via the scalability and speed of its network, as well as compatibility.
You’ll be blown away by Avalanche. Whether you are sending money, data or files, the average time it takes to travel from point A to B is under two seconds. Keep in mind that other cross-border payments via conventional financial infrastructure might take anywhere from a few days to a week to process and settle.
The Avalanche blockchain network’s scalability is also crucial. Developers previously claimed that the networks would be able to process 4,500 TPS. Visa can handle up to 24,000 TPS for comparison. However, the figure of 4,500 TPS claimed by Avalanche per subnetwork should be taken with a grain of salt because the creation subsets are endless. In other words, there shouldn’t be any scaling concerns that jeopardize the effectiveness of the Avalanche network.
The most recently announced feature of the Avalanche smart contract-based blockchain network is its smart contract-based blockchain network, which has made it a topic of intense interest. Smart contracts are protocols that facilitate, verify, and help enforce the negotiation of a deal between two parties.
In the long term, Avalanche plans to become a go-to spot for developing decentralized apps (dApps). Although Ethereum is now the most popular dApp building platform, Avalanche’s blockchain includes the ETH Virtual Machine (EVM), which is the software developers use to create dApps on ETH. It’s possible that we’ll see big increases in dApp protocol income moving ahead because Avalanche can deliver greater scaling, faster execution, and cheaper transactions than Ethereum.
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