2 cheap cryptocurrencies that could skyrocket
Lack Bitcoin and Ethereum? No problem. Next-generation cryptocurrencies like avalanche (CRYPTO: AVAX) and Theandbox (CRYPTO: SAND) potentially offer better growth prospects as they push the boundaries of blockchain technology. Let’s explore why these under-the-radar cryptocurrencies appear poised for explosive long-term growth.
Launched in 2020, Avalanche is an Ethereum rival focused on building a platform for decentralized application development (DApp). With a market cap of $ 19 billion, Avalanche is very cheap compared to Ethereum (which is worth $ 563 billion), and it can quickly gain traction due to its transaction speed advantages.
DApps are self-executing programs that allow users to interact on a blockchain without a centralized intermediary. But as DApps expand a blockchain’s potential use cases, they also increase its volume of transactions – overloading legacy platforms like Ethereum, which struggles with slow transaction speeds (13 per second) and costs that are skyrocketing.
Ethereum uses a cumbersome proof-of-work mechanism where miners solve puzzles to validate transactions. The developers plan to change that with an upgrade called Ethereum 2.0, but it’s unclear when that will go live.
In the meantime, Avalanche uses a faster, less energy-consuming proof-of-stake validation system. Miners verify transactions using tokens they own, processing a staggering 4,500 transactions per second. The Avalanche network is also naturally deflationary. According to its website, all transaction fees are burned (sent to an inaccessible wallet) to promote the scarcity of its native token, AVAX.
So far, nearly 374,000 coins worth nearly $ 34 million have been withdrawn from circulation.
2. The sandbox
The Metaverse is a potential iteration of the Internet that could support a 3D virtual world. And the concept spawns a whole generation of cryptocurrencies designed to facilitate transactions within the simulation. The sandbox can stand out by focusing on interactive games.
According to its white paper, the Sandbox is building a virtual world where players can “build, own and monetize their gaming experiences”. Similar to a publicly traded video game company Roblox, it has a game creation engine that allows users to create their own digital assets.
Assets are created and traded in the form of non-fungible tokens (NFTS) which are digital proof of ownership stored on the blockchain.
The Sandbox has a strong development team with real intellectual property and experience in making games. According to its developers, the game is part of a larger Sandbox franchise, which has helped develop world-making games on Android and AppleIt’s iOS since 2012, with over 40,000,000 downloads in its portfolio.
According to its development roadmap, The Sandbox plans to open its metaverse to a selection of users during the second quarter of 2022. But as with all cryptocurrencies, everything should be taken with care until the developers actually deliver a functional finished product.
Bet on the next big thing
Everyone wants to step into the ground floor of a long term growth opportunity. And with their relatively small market caps, Avalanche and The Sandbox offer that potential. Having said that, Avalanche seems to be the safest bet as it is essentially a finished product. The sandbox use cases are more unique and exciting, but it’s at a much earlier stage in its development, making it more uncertain for investors.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.