Cryptocurrencies have been highly volatile all through the first two weeks of December. Bitcoin hit a high of $57k before subsequently entering a bear market. Today, bears are putting pressure on the $47k support, which could spell more downside for the broader market.
The catalysts that helped spark the downturn include the emergence of omicron variants and the Federal Reserve’s openness to raising interest rates earlier than expected to combat inflation.
That said, demand for digital assets remains high, especially at the institutional level. There is also a lot going on in terms of tech development with crypto space. This means the current dip is a perfect opportunity to buy. Below are some cryptocurrencies that are perfect to buy this December, with a target of 2022.
Bitcoin (BTC)
Bitcoin (BTC/USD) is the king of cryptocurrencies and accounts for roughly 40% market share, making it a must-have in any investor’s portfolio. November was an eventful month as Bitcoin hit its all-time high just under $69k before entering bear market territory late last week following news about a new coronavirus variant called omicron. It has since been on a downtrend and is currently putting pressure on the $47k support. That said, adoption is growing. Recently, El Salvador bought the dip, an indicator that they are positive on Bitcoin’s long term prospects. With institutional adoption on the rise as well and Bitcoin being a scarce asset, there is no doubt that adoption will grow as well. This makes Bitcoin worth buying this December.
Ethereum (ETH)
Ethereum (ETH/USD) remains one of the best cryptocurrencies to buy today, and for a good reason. With Ethereum’s market dominance at more than 21%, it became even more dominant than Bitcoin during that volatile 30 days from Nov 5th-Dec 5th when they both went up 10%. Unlike Bitcoin whose market share declined by 6 percentage points during this time frame, Ether increased nearly 15 percent as young people flocked into decentralized finance (DeFi) using Ethereum -the preferred digital currency among tech enthusiasts. With Ethereum set to completely deal with its scaling problems within 2022, demand is likely to shoot up by a huge margin. This makes it one of the best cryptocurrency investments for December 2021.
Solana (SOL)
As the year comes to a close, it is clear that there is no slowing down for cryptocurrencies. The prices may have dropped over the last few days, but adoption levels for the technology have shot up. One cryptocurrency, in particular, caught our attention: Solana’s rise from 0.01% market share to an all-time high of 2%.
Solana (SOL/USD) has been driven by its low costs and unrivalled scalability. This has made it a darling for developers, especially in the DeFi and NFT spaces. The same has been reflected in Solana’s price, with its value shooting up by over 2000% this year.
The DeFi field – characterized by smart contracts, trustless ecosystems and unapologetic cutting out third party financial gatekeepers like banks or centralized exchanges–is poised to not only continue rising but also evolve into new heights as developers find more uses for these technologies with time goes on! This means the demand for Solana will only go up over time.
Anyone who wants an investment opportunity guaranteed this December, Solana is worth adding to a portfolio this December.
Binance coin (BNB)
Binance Coin (BNB/USD) may be the third-largest token by market cap, but it only accounts for 4% of all cryptocurrencies. This gives it a lot of room for growth going into the future. It’s been steadily rising in recent months and is one of the best performers among the large-cap cryptocurrencies this year.
Binance coin’s momentum has a lot to do with the fact that it is the token that powers the Binance ecosystem. The BNB coin can be used as a currency on Binance exchange or for paying fees on Binance and Binance affiliated platforms such as the Binance Smart Chain. This has given it a huge push over the years.
Binance was founded back in 2017 when they raised $15mln through ICOs (initial coin offerings). They currently host over 500 trading pairs, and the numbers are growing every day. Considering how consistently innovative Binance is, you can expect that the use cases and value of Binance Coin will rise over time.
This makes BNB one of the best cryptocurrencies to buy this December and take advantage of the current market dip. Besides, Binance carries a coin burn for BNB every quarter. This is likely to put more upside pressure on BNB going into 2022 and beyond.
Avalanche (AVAX)
The Avalanche coin (AVAX/USD) was founded by a group of Cornell University-affiliated computer science researchers. Avalanche made its debut through an initial coin offering in 2020 and raised $30 million from Andreessen Horowitz and other institutional investors.
While it started off low at just over 3 dollars per AVAX token (the name for this currency), AVAX recently hit highs of over $90.
This is all thanks to Avalanche’s rapidly expanding network that is quickly eating into Ethereum’s market share in the platform blockchain space. The team behind Avalanche openly aims towards surpassing Ethereum, and if the current growth rate is anything to go by, then there is a chance.
Avalanche is one of the lowest cost and highly scalable platform blockchains in the market. This means demand will only go up, especially in the NFT and DeFi markets. This growth will reflect in the value of AVAX over time. This makes it one of the best cryptocurrencies to buy in December, especially now that the market has dipped.
So what now
All the above cryptocurrencies have the potential to double or triple your money. While they could stay in the red all through December, they stand to give the most returns once the markets stabilize. Their fundamentals are right, and prices are perfect too after a more than 10% dip.
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