Cryptocurrency has been on a wild move since the start of this year. It is a combination of excitement and enthusiasm around the crypto space. Meanwhile, this revolves around the growth the crypto market experienced in the first six months of 2021. As a result, crypto-related products and decentralized finance (DeFi) became the new discourse in the mainstream media.
There was an increase in crypto interest. Yet, the volatility kept bouncing around the market, but Bitcoin and other cryptos made a positive return after the drops. Amidst the market fluctuations, individuals and institutions were interested in understanding crypto behavior and its future impact on finance. About 70% hopped in while trying to be part of the next big thing in crypto.
Institutions and investors leverage the pioneer cryptos to establish an entry into the crypto market. That’s because observation revealed that these pioneers have enough influence on the market behavior. Likewise, they affect the movement around other cryptos known as alternative coins (altcoins).
The market panic that existed around May resulted from the price dive that occurred in the crypto market. Prices slash occurred, traders doubted the sustainability of crypto throughout those times. Some were not sure of crypto comebacks.
Whereas some believed that the downward spiral was necessary for other cryptocurrencies to establish their entry. They feel a new age is about to exist in the crypto space because the pioneers are wearing out due to present demands.
Regardless of the experience towards the mid-year, the digital currency market took a turn, made an impressive comeback while August was early. Cryptocurrency is establishing a new era in the financial sector, and there are lots of excitement as we are in the last quarter of the year.
The cryptocurrencies listed below are expected to spike more during the year’s last lap.
- Avalanche (AVAX)
- Binance Coin (BNB)
- Bitcoin (BTC)
- Cardano (ADA)
- Ethereum (ETH)
5 Cryptos That Will Rise Due to Institutional Adoption in Fourth-Quarter
When market participants want to jump on a digital currency, speed is one of the factors they consider before endorsing crypto. This is what Avalanche leveraged with its entry into the crypto market. On its website, it reads, “fastest smart contracts in the blockchain industry.”
While cryptocurrency is vast, there is one certainty. A quicker transaction associated with a crypto project means that the project is open to other innovative projects in the blockchain, crypto, and DeFi space.
The site reveals that about 4,500 transactions occur every second on the network. When compared to other blockchain networks, Avalanche has a competitive edge against others. Bitcoin can only process seven transactions in a second, fourteen for Ethereum and 1,500 for Polkadot.
And when you consider the transaction time for each trade call made, Avalanche is up ahead of other coins. Its transaction process takes not more than two seconds, Bitcoin users can expect their transactions to complete in an hour, Ethereum uses six minutes, and Polkadot takes a minute.
Meanwhile, Avalanche’s price may spike because of its recent listing on Coinbase professional platform. There will be increased liquidity and exposure bringing about positive pressure on the price.
Binance Coin is one of the cryptocurrencies that the Bank of America believes to be a digital asset primer in the crypto space. As a result, this coin is expected to undergo massive growth. This will not only increase its adoption at the retail level. It would bring institutional investors on board for increased participation.
Binance as an entity is one of the leading crypto exchanges that has its coin, Binance Coin. This coin is issued at a one-to-one value to the value of the U.S. dollar. Different factors are contributing to making Binance Coin a focus in the crypto market. However, the main point is about Binance legitimacy worldwide and how investors will become interested in the coin, exchange, and platform.
Binance Coin’s increase in price will stem from investors perceiving it as a coin of its exchange and the Ethereum compatibility that it offers to establish stability other digital assets may not provide. AS such, newbies would also be interested in exploring this coin.
There have been different price fluctuations around Bitcoin. September’s end saw BTC around $43,000, while October 13th has a price above $55,000. This price fluctuation and demand for BTC resulted from investors replacing gold with BTC. Initially, they expected gold to be the inflation hedge tool, but BTC rose to that status instead.
As a result of institutional interest in BTC as the digital gold, the demand increases, and the price spikes up. The price is expected to keep going up because institutional investors are encouraged to make market entry, which will be a massive pump in the crypto market.
Cardano is becoming an established competitor for Ethereum. This project is challenging Ethereum across functionality, and it has been making mainstream waves recently. There are speculations that Cardano may displace Ethereum in the nearest future.
Although no one can predict the future price of Cardano and other cryptos, Alonzo—the hard fork smart contracts launched on Cardano—makes it become a more worthy challenger for Ethereum. After much criticism of its absence, Alonzo launched successfully, and projects attached to it are coming soon. As a result, Cardano should see price appreciation in the last quarter of 2021.
One major advantage Ethereum rides on is having its platform that creates its coin. And it is one of those coins listed by Bank of America to have great potential in the crypto space. Aside from that, we are experiencing the dominance of Ethereum in the crypto world. It is becoming the best crypto to cling to for developers in the decentralized app (dApp) space.
AS a result, institutional and retail investors are developing a keen interest in Ethereum because it is becoming a benchmark in the crypto space after Bitcoin. However, Ethereum’s future depends on the implementation of Ethereum 2.0 and upgrade efforts on the platform.
Although this may take time, Ethereum is becoming the next big name. And investors see it as the next asset to keep due to investor interest when institutions announce their crypto interest.
First, this should not be regarded as financial advice, but investors can allocate enough of their portfolio to get those cryptos listed above. That’s because the theory will hold, and institutions will play it out due to their crypto adoption. Thus, you can consider getting your hands on them while they have a low price and expect a good yield with time.