PriyankaWe’ve meticulously curated a list of the 12 Best Cryptocurrencies to Invest in According to Reddit. This article delves into Polygon (MATIC), examining its position relative to other leading cryptocurrencies.
The past year was a rollercoaster for cryptocurrency investors. The approval of spot Bitcoin ETFs in the first quarter allowed markets some breathing room before the SEC cleared spot Ethereum ETFs in May. This regulatory green light led to spot Bitcoin ETFs amassing over $50 billion in assets within just six months—a feat many experts deem the most successful ETF category launch ever.
In addition to spot ETFs, crypto-themed ETFs also experienced robust performance in the first half of 2024. For instance, the First Trust SkyBridge Crypto Industry & Digital Economy ETF posted a healthy year-to-date gain of over 20%. Blockchain-focused products like the Amplify Transformational Data Sharing ETF also saw significant traction, rising by over 19% YTD.
Artificial Intelligence (AI) has recently made significant inroads into the crypto world. AI tokens are cryptocurrencies directly linked to AI ventures, supporting projects, applications, and services in this domain. Examples include decentralized AI marketplaces and AI-driven decentralized autonomous organizations. These tokens enable users to pay for services or access data on platforms while platforms can use these tokens to incentivize users through rewards or governance rights. According to CoinMarketCap, the market cap for AI and big data cryptocurrency projects surged by over 70% in just a few weeks, signaling renewed investor confidence.
The crypto industry has faced regulatory scrutiny, especially after high-profile collapses like FTX. These incidents spotlighted the need for robust regulations. Government bodies, particularly the SEC, are now more proactive in enforcing rules. The SEC has sued two major crypto exchanges, highlighting the importance of clear regulatory standards. Such regulations could pave the way for institutional investors like banks and asset management firms to enter the crypto market.
A bi-annual survey by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) revealed that 22% more financial services organizations offered crypto-asset products and services in 2023 compared to 2021. Additionally, 26% more institutional investors included crypto assets in their portfolios during the same period. Coinbase noted that updated 2Q 2024 13-F filings showed a strong increase in institutional inflows into US spot Bitcoin ETFs, with institutional ownership rising from 21.4% to 24.0% between Q1 and Q2 of 2024.
The United States International Trade Commission reported that global revenues from tokenized asset exchanges reached approximately $26.5 billion in 2022, with around 76% coming from cryptocurrencies. Revenues from tokenized assets surged in 2021 due to the growth of nonfungible tokens (NFTs) and rising cryptocurrency prices. McKinsey projects that the total tokenized market capitalization could reach $2 trillion by 2030, driven by adoption across mutual funds, bonds, exchange-traded notes, loans, securitization, and alternative funds.
Globally, the cryptocurrency market capitalization exceeded $2.5 trillion, with Bitcoin reaching a record high of over $73,000 and a market cap of $1.4 trillion by mid-March 2024. The market is expected to grow to approximately $6.6 billion in 2024, with user numbers projected to hit 107.30 million by 2025. This growth will likely be driven by increased institutional and individual adoption of cryptocurrencies, advancements in blockchain technology, higher usage of decentralized finance (DeFi) platforms, and more cross-border transactions.
Our methodology involved scouring multiple communities, subreddits, and threads to identify the trending cryptocurrencies. We ranked them based on market capitalization as of August 29.
At Insider Monkey, we focus on stocks favored by hedge funds because our research shows that mimicking their top picks can outperform the market. Our quarterly newsletter selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points.
Polygon, formerly known as Matic Network, is an Ethereum token that powers the Polygon Network. It aims to facilitate faster and cheaper transactions on Ethereum via Layer 2 sidechains running alongside the Ethereum main chain. By integrating the Plasma Framework and proof-of-stake blockchain architecture, Polygon addresses scalability issues and enables scalable and autonomous smart contracts through its sidechain secured by proof of stake.
Staking MATIC allows a robust network of computers to secure and validate the network while earning MATIC rewards. The launch of Polygon 2.0 last June marks a long-term plan for a four-layered scaling ecosystem leveraging zero-knowledge cryptography to interconnect Layer 2 Ethereum networks, thereby strengthening the platform’s architecture.
Overall, MATIC ranks 7th on our list of top cryptocurrencies to invest in currently. While MATIC shows promise, we believe some undervalued AI stocks offer even higher returns within shorter timeframes. For those interested in undervalued AI stocks trading at less than five times their earnings, our report highlights the most promising options.
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Disclosure: None. This article is originally published at Insider Monkey.
