In the past cryptocurrency was at the margins of the financial world and many investors didn’t see any attraction or long-term value to digital assets. However, that perception is gradually changing. Nowadays, investment banks such as Goldman Sachs are active in the cryptocurrency market and 83 percent of millionaires of the millennial generation have cryptocurrency.
A decentralized financial system (DeFi) can be the primary reason behind this trend. DeFi allows individuals to take out loans, borrow money and earn interest without the need of the bank or other traditional institution. By removing banks from the equation DeFi will make banking more effective as well as accessible.
Ethereum is for a long time the biggest community of distributed software and services in the world of blockchain technology, but competitors like Avalanche ( AVAX 1.15% ) and Fantom ( FTM 2.88% ) are growing and could soon surpass Ethereum. This is why both cryptos appear to be good long-term investment choices.
Top 2 Cryptocurrency to Hold for long term
Avalanche is a smart-contracts system created to provide a faster and less expensive option to Ethereum. The platform’s main feature is its Snowman consensus technology, which is a Proof-of-Stake (PoS) method that speeds up the speed of transactions by allowing validators to verify transactions using random sampling of only a tiny subset of nodes (computers) instead of conducting a thorough check on each transaction at each node in the network.
This means that Avalanche can handle up to 4,500 each second of transactions (TPS) and can complete these transactions in only two seconds.
The speed is what allows Avalanche much more flexible than Ethereum which is currently able to handle only 14 TPS and takes approximately six minutes to reach the point of no return. Additionally, since there aren’t any competing users for computational resources on the blockchain, an transactions on Avalanche is currently priced at $0.20 on average, while a transaction on Ethereum will cost you $11.
Even better, Avalanche is compatible with Ethereum’s self-excuting smart contracts. which means that developers can easily transfer their Ethereum-based services and software onto Avalanche. Avalanche blockchain. This is a more efficient and less expensive alternative. This benefits have resulted in an impressive use.
Avalanche is currently the fourth most popular DeFi platform with more than $10 billion of investment through the platform. There is a good reasons to believe that the figure will continue to grow. In December the year of the native USDC, an USD Coin that is based on Ethereum USD Coin (USDC) became available on Avalanche which means that investors don’t have to migrate USDC to Avalanche to Ethereum blockchain. What’s the matter? USDC can be described as a steadycoin that is tied against the U.S. dollar, and it allows investors to take part with DeFi with no need to hold volatile cryptocurrency. Because of this, its inclusion as a native currency could increase the adoption of DeFi through the Avalanche blockchain.
As more people and investors make use of the services and software that are available on Avalanche Demand for AVAX token is likely to increase and drive its price up. In addition, given its unique potential value as an efficient, less costly alternative to Ethereum I believe Avalanche investors can expect huge growth in the coming years. With a market worth of $22 billion Avalanche is only worth a tiny only a fraction of Ethereum’s total of $372 billion.
Even better, Avalanche is also cheaper on a per-cent basis. The ratio of its market capitalization in relation to DeFi the value of investment (which is similar to book value to share price value for companies) is 2.3 The ratio of Ethereum’s between market capitalization and DeFi investments is 3.2.
Fantom is a blockchain that Fantom blockchain was created to provide a more scalable option to Ethereum. The key innovation behind it comes from its Lachesis protocol, which is a proof-of-stake consensus mechanism that permits validated parties to verify the transactions on their own rate and not have to check every transaction against any additional validator that is on the system. This is what makes Fantom the most efficient public blockchain within the crypto sector according to the team that developed the project.
It is possible that the platform is able to handle thousands of transactions every second, and finish transactions in a single second. Like Avalanche its scalability helps keep charges low. A typical transaction is currently priced at less than a cent.
Additionally, Fantom is also compatible with Ethereum smart contracts, which means Ethereum-based applications and services can be easily integrated into on the Fantom blockchain. For example, the well-known harvesting software Yearn Finance was launched with Fantom during October. This interoperability can be an important factor for this Ethereum rival.
Similar to Avalanche, Fantom has a clearly defined value proposition. Developers are able to build quick efficient, scalable applications and services, and customers are able to use these products at less than a penny per transaction. Even though Fantom began operations just two years ago now the sixth-largest DeFi ecosystem with $6.4 billion of investment in the platform. As more users use the services and software offered by Fantom The demands for FTM token will increase which will push the price up.
Its ratio between its Market Cap in relation to DeFi investment value currently stands below 0.6 This means that it’s less expensive in comparison to Ethereum (and Avalanche) on an absolute basis. From this angle, Fantom appears to be undervalued. Given the possibility of it disrupting Ethereum I believe it’s worth investing in this cryptocurrency.