Cryptocurrencies appear to be here for the long haul, with the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs marking a significant step forward. While this doesn’t eliminate the risks associated with the broader cryptocurrency industry, investors can look to certain cryptos as long-term holdings, similar to blue-chip stocks.
A 2022 Boston Consulting Group report suggests that the number of crypto users could reach one billion by the end of the decade. For these new users, blue-chip cryptos will likely be their first point of exposure, making a strong case for continued growth in select cryptocurrencies.
Three cryptos to consider for long-term value creation are Bitcoin, Ethereum, and Zilliqa. Bitcoin remains a default choice for any crypto investor’s core portfolio. The Bitcoin spot ETF is expected to draw more investors into the cryptocurrency market, and with limited supply, there is potential for a significant rally. Cathie Wood predicts that Bitcoin could reach $1.5 million by 2030 following the ETF approval. Additionally, Bitcoin halving is due this year, which could serve as another catalyst for the crypto asset.
Ethereum is another blue-chip name in the cryptocurrency world and has seen a 48% increase in the last 12 months. It has the potential to outperform Bitcoin in the next five years due to multiple developments in the pipeline. Ethereum’s development is only 55% complete, compared to Bitcoin’s 80%, according to Vitalik Buterin. As transaction speed and cost issues are addressed, Ethereum’s value could surge. The SEC’s decision on Fidelity’s spot Ethereum ETF has been delayed until March, and positive news on this front could trigger a significant rally for Ethereum.
Zilliqa, a smaller project, is the world’s first sharding-based blockchain. This technology increases transaction speed and has already resulted in lower transaction costs compared to Bitcoin and Ethereum. Zilliqa appears undervalued, and with a current APR for staking at 11.08%, there are reasons to be bullish on this crypto. In March 2022, Zilliqa launched metaverse-as-a-service, causing the ZIL coin to quadruple in value. The relaunch of this venture could serve as another long-term catalyst for value creation. If the bull market for cryptocurrencies continues, ZIL coin could see 10x to 20x returns within the next five years.
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