Which Cryptocurrencies Will Survive in 2019?
Which Cryptocurrencies Will Survive in 2019?
Which cryptocurrencies will we leave in 2018?
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2018 was a tough year for the whole cryptocurrency industry. The key players experienced their record highs and lows; struggled in the bearish market; and suffered from hacks and forks. The market ended up with a significant fall in crypto prices and overall capitalization, which decreased from $604 billion to $130 billion in a year! This dramatic drop has brought a new wave of skeptic voices telling stories about bubbles and the upcoming crash of the entire ecosystem. However, it’s 2019 and cryptocurrency is still here, alive. So, what’s next?
Disclaimer: this article doesn’t include exact predictions as the cryptocurrency industry is highly volatile and unregulated. So, don’t consider the following information investment advice.
The Current State of the Crypto Industry
CoinMarketCap clearly highlights the global market capitalization and price movements of all existing cryptocurrencies. As of January 8, there are more than 2,000 crypto tokens, but Bitcoin remains the king as it accounts for over 50 percent of the total market cap and enjoys a $70-billion share.
Since late December 2017, the crypto market has been crashing at a rapid pace. Once Bitcoin hit its annual low of $3,200 per unit in mid-December 2018, the community fell into a panic and started spelling doom for the industry. For example, Nouriel Roubini from New York University claims that cryptocurrency is the mother of all scams and a tool for pump-and-dump schemes. Nevertheless, the community hopes to see new uptrends in 2019. According to the study made by the Cambridge Centre for Alternative Finance, the number of crypto customers has doubled since 2017, and people trust the digital asset economy more than ever.
Evaluating the Survival
Considering the current market situation and the expanding customer base, we should admit that the global crypto market will survive into 2019 and beyond. However, a lot of unstable or even fraudulent ICOs of 2017-2018 have taught us to double-check the projects that we are going to invest in. Here are some indicators of a reliable cryptocurrency:
Real product/service. Projects should offer something useful to customers.
Strong community. Projects should have support from customers and developers alike.
Professional team. Projects should be backed by the people who have been in the industry for a while.
Full capitalization. Projects should have their own cryptocurrency.
Generally, the best (Tier 1) projects are cryptocurrencies with a long history and multiple use cases like Bitcoin or XRP. Respectively, the Tier 2 tokens are built on top of the existing reputable platforms or protocols such as Ethereum, EOS, etc. All other cryptocurrencies are Tier 3 as they still have to prove their efficacy and utility.
Obviously, the top-rated projects stand a good chance to survive and will unlikely fade away anytime soon. As long as the whole crypto-economy remains attractive to investors, it will stay afloat. That’s why we want to focus on the most promising tokens, which are expected to develop and expand in 2019.
Top Projects of the Future
Our list includes both well-known cryptocurrencies and some fresh projects, which deserve your attention. Titles are sorted by the current market capitalization.
Bitcoin is great crypto with the largest market cap and price, so it should remain in the top, regardless of scalability issues and outdated protocol principles behind. Bitcoin is digital gold, so make sure to hold some even if you are not going to use it for money transfers.
Similarly, Ethereum is a well-known cryptocurrency project, which sets the trends in the industry, hundreds of ICOs were built upon it, so developers highly appreciate Ethereum’s versatility. Although the platform faces the issues of scalability and transaction speed, it remains the most functional decentralized platform to date.
Here’s the global payment network that aims at universal usage. The Ripple network allows for fast international transfers and exchanges of various assets including crypto, fiat money, and more exotic stuff like bonus miles. The team cooperates closely with the largest banks to create a hybrid of centralized and decentralized money systems.
Meet the most famous “Ethereum killer!” EOS pursues the same goals as its main rival because it acts as a platform for dApps’ development. The EOS founders claim that they can easily solve scalability issues and set up an extremely fast zero-fee system. Theoretically, EOS is able to process around 50,000 transactions per second, while Visa is up to 20,000 only.
5. Stellar Lumens
Like XRP, Stellar Lumens is focused on international high-speed and low-fee transactions. However, Stellar aims to work independently and not rely on cooperation with banks or regulators. Take a close look at this project if you prefer all-in-one cryptocurrency systems. Stellar also powers ICOs, decentralized exchanges, and dApps.
Despite relatively low market capitalization, TRON is going to shake up the world in 2019. This platform tends to decentralize the entertainment industry and launch next-gen services. Recently, the team has acquired BitTorrent, so we can expect more news on the decentralized content distribution and protection.
It’s another project, which utilizes innovative ideas to attract customer attention. IOTA is developing a system for secure and efficient data sharing between IoT-based devices. The main vulnerability of such platforms is the high pace of technological progress, which can potentially destroy the very idea of IoT.
8. Basic Attention Token
BAT offers a cutting-edge decentralized protocol for interaction between publishers, advertisers, and users. All parties can benefit from secure and direct content distribution, personalized promotions, digital identity protection, and piracy prevention.
As for now, new users have to enter the crypto world using traditionally centralized exchanges, some of them constructively reviewed on TheProblem.Wtf. Active traders also prefer such platforms. But Waves offers its own decentralized exchange, which is way safer than traditional marketplaces. Generally, Waves acts as a crowdfunding platform for crypto projects, but we included this token in view of its DEX functionality.
Reasons for Optimism
2019 is expected to bring institutional investors to the crypto market. Analysts and experts predict that it is likely to happen during the year. This will mean that large authorities believe in cryptocurrencies and trust the industry, so the whole market should go up significantly. Also, we expect more advanced and favorable cryptocurrency regulations to pop up, which will lead to the effective integration of decentralized platforms into traditional financial systems.
While we can barely predict which exact projects will survive and skyrocket, it seems that top cryptocurrencies like Bitcoin and Ethereum will lead the industry, and promising startups like EOS and TRON will accompany them.
Opinions expressed by DZone contributors are their own.