A Done Deal
Well, the ETH Merge is now history and proved to be a bit of a non-event, in terms of price appreciation. With the price of ETH currently trading at the $1300 level, I am sure there are a few disappointed investors out there. ETH was at one point, my largest holding. I began moving out of ETH between $4200 and $3000 some time back. I still hold ETH, but not much. Initially, I had considered building up a new ETH position once markets find a bottom. I will most likely still acquire some “cheap ETH”, given the opportunity. However, I am slowly beginning to move in favor of a few “ETH killers”. Given the state of the market, I have not really addressed altcoins much in recent months. Regular readers will be aware of my viewpoint when it comes to layer 1 alternatives. Given that centralization has become such a concern when it comes to Ethereum, competitors are now even more appealing to me. You have to remember that many of these alternatives were dismissed due to concerns about centralization. ETH appears to no longer have that upper hand and is likely worse off than many projects that were initially dismissed for the exact same concern.
This has caused me to become even more bullish on chains such as Solana and Avalanche. These two projects have been my primary focus outside of ETH. However, readers will remember that once Cardano fell below $0.55, I developed quite a bullish case for the project. Despite Anatoly Yakovenko criticizing Cardano for their meticulous building practices, I however am in favor of their approach. Solana hit the market as fast as was humanly possible and was able to capitalize on the bull market of 2020 and 2021. However, Hoskinson has chosen an approach that lends itself to perfection. The two are so different, and yet both layer 1 blockchains, which is exactly what I want. Diversification is always key! Here we have ETH as the leader, followed by a rival that boasts tremendous capacity in the form of TPS. Cardano, on the other hand, is more of a true “investment grade” blockchain, in the way that the team has gone all out to try and produce a truly superior project.
What About Avalanche?
Avalanche recently moved into a beautiful accumulation zone at approximately $15, which I am sure many took advantage of. I am however still expecting even lower levels. Avalanche is also quite scalable, especially via Subnets, and also has quite a strong VC backing, similar to Solana. Depending on how low AVAX goes, it could yield some really great returns in the up-and-coming bull run. Avalanche also experienced a heavy blow during the LUNA crisis, which placed AVAX under some pretty heavy selling pressure. My focus is pretty much centered on these three alternatives. It’s also important to note that all of these projects are POS, which guarantees a form of passive income, as well! Last time I checked, AVAX had the highest reward, while ADA offered the lowest return.
A well-diversified layer 1 portfolio is a good idea, in my opinion. All three of these projects could carve out their own unique “niche” and go on to prosper well into the future. All three chains are also very cost-effective in terms of transaction fees, which can oftentimes be a deal breaker for many. My selection also ensures that I am exposed to speed, scalability, and excellence. Hopefully, I have covered the bases. It’s also worth mentioning that NEAR is another really interesting option, one that I may include, depending on where prices go. Thanks for stopping by. Catch you next time!