For now, all seems clear – the cryptocurrency market has caught up for now. That's not to say that it will do nothing but coast upwards without interruption. We'll certainly continue to see crypto crashes, sharp corrections and high volatility in digital currencies. Nevertheless, the outlook is not as bleak as it was a few weeks ago.
In the medium term, nothing has changed regarding the potential of cryptocurrencies anyway. Concerns about energy consumption, regulatory fears and the like are most likely disruptive factors that will continue to stay with us, but they won't be able to stop the triumph of cryptos in the long term. Digitization is not only affecting online commerce, the entertainment industry and the consumer goods market, but also finance, currencies and payment transactions.
Therefore, now may not be a bad time to invest in crypto-currencies again – although investors should always bear in mind that significant losses are imminent, and that investing in crypto-currencies is by no means the holy grail for retirement security and targeted asset accumulation. However, these coins can be an interesting speculative complement. Given the risky component, I would now opt for the following cryptocurrencies.
Bitcoin
Bitcoin is currently trading just below the US$40,000 mark. Over the past seven days, there has been an increase in value of around 25%. The dynamic has clearly reversed. While BTC bodlers feared a downward breakout of the sideways range a few days ago, upper resistance could now fall. This could be an opportunity to invest in bitcoin again – preferably, we're still waiting for the US $40,000 mark to be breached for good, and for a new upward rally to be imminent.
In recent days, it has been the rumours surrounding Amazon's adaptation of bitcoin that have brought stability to the world's most valuable cryptocurrency. Amazon has since denied rumors that bitcoin will be used for payment on the e-commerce platform in the near future. Nevertheless, the company has stated that it is definitely interested in tapping into the crypto-currency market. Greater acceptance on the part of large corporations should also have a positive effect on BTC – whether or not you can pay with bitcoin at Amazon.
Ethereum
In principle, it doesn't really seem wrong to take on the world's most valuable crypto-currencies. After all, capital from institutional investors, in particular, isn't likely to flock to the most speculative projects. Consequently, Ethereum can also be useful as an investment. What's more, the ETH price has corrected sharply since peaking above US$4,000. In the meantime, however, it has broken through the US$2,000 barrier again. At the same time, the breakout appears to be sustainable.
With a fundamental wind at its back thanks to Ethereum 2.0, which just recently hit the 200,000 validator mark, the London Hard Fork in the form of EIP-1559 and EIP-1559, Ethereum is now a sustainable investment.
Blockchain
Compared to May 2021 prices, Chainlink is trading today at an excessively low price. At one point, LINK was trading above US$50. Today, it is struggling with the US$20 mark. A sustained breach of this price zone could provide fresh impetus. Over the past seven days, the share price has risen by over 35% and is approaching the US$20 mark. A test of resistance could be imminent.
Chainlink is extremely exciting as the number 1 oracle network. Because blockchain technology has a problem. Information from the real world is needed, but not available. So Chainlink provides a link between real-world information and the digital blockchain.
Axie Infinity
The Axie Infinity coin is anything but cheap right now. AXS tokens were a real hit last month. Nevertheless, Axie Infinity is currently on a roll. With a market capitalization of around US$2.8 billion, there still seems to be room for the blockchain game to really take off – as its popularity is growing rapidly. Nevertheless, the number of users is still scalable.
Currently, for example, the Discord community for Fortnite – a popular cross-platform game – is the largest in the world with over 800,000 members. But Axie Infinity already has 700,000 members here who are interested in the blockchain game. However, with around 350,000 daily active users, Axie Infinity is still a long way behind the giant.
At the same time, the gaming token can score points thanks to its diversity in a crypto market concentrated by DeFi. Those who want to spread their risk are unlikely to put all their money into DFi's applications. AXS also allows you to bet on the future of cryptocurrency gaming on the Ethereum blockchain.
