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Although Bitcoin ( BTC-USD ) fell to the $40,000 level this week, there can be optimism. This is because the next generation of cryptocurrencies is ready to bring real value to the market.
These next generation cryptocurrencies are assets that are changing the industry forever. They provide greater value for users and investors with integrated functionality and greater liquidity for all market participants.
If you're looking to invest in the next generation of cryptocurrencies for 2024 and beyond, here are some coins you should have on your watch list.
dotted (DOT)
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Polkadot ( DOT-USD ) stands out for its unique approach to blockchain interoperability and scalability. It allows different blockchains to transfer messages and values without trust.
There are many reasons why DOT is the next generation cryptocurrency. First, the network is built on both parapets and bridges. It solves some of the biggest problems facing blockchain networks, such as scalability and security.
The Layer 0 structure also allows for the creation of highly interactive custom blocks. It allows decentralized applications to communicate across different infrastructures.
Finally, the DOT control token allows participants to have a say in how the network should be managed and developed, making it one of the best next-generation cryptocurrencies to maintain focus.
LINK
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Chainlink ( LINK-USD ) is a decentralized oracle network that aims to connect smart contracts with data.
Although LINK does not compare to the new cryptocurrencies and meme coins, I believe that 2024 could be the year that LINK comes back into vogue. One of Chainlink's main focuses in 2024 is the virtual tokenization of real assets (RWA) on the blockchain.
The potential of RWAs is great. For example, users can sign physical assets such as real estate on the blockchain. The value of a home can be divided into tokens, allowing fractional property ownership with a much lower initial investment.
Other investments can also be signed, such as art, or even intellectual property, such as art rights. It can help more people build real wealth without debt.
This means that property or art assets will be converted into NFTs (fungible tokens) on the blockchain and backed by zero-knowledge proof. Such events can give investors confidence in the prospects of the cryptocurrency industry.
Algorand (ALGO)
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Algorand ( ALGO-USD ) is known for the speed and efficiency of transaction processing. It uses a unique consensus mechanism known as Pure Proof-of-Stake (PPoS), which makes it significantly different from other networks.
ALGO's main advantage comes from the recent introduction of dynamic return time, which results in faster transaction speeds. These higher speeds mean that network congestion is reduced and congestion can occur faster than would otherwise be possible.
If you've ever sent a Bitcoin transaction and waited, you know how important faster block times are. This makes the network relatively more scalable and reliable.
The goal is to reduce the block time of the algorithm to less than three seconds, making it one of the fastest networks. Therefore, due to its speed and efficiency, ALGO is one of those next-generation cryptocurrencies that investors should consider.
As of the date of publication, Matthew Farley held no position (direct or indirect) in the securities mentioned in this article. The opinions expressed are those of the author and are in accordance with the InvestorPlace.com Publishing Guidelines .
Matthew started writing about financial markets in 2017 during the cryptocurrency boom and has been a team member at several fintech startups. He then began writing about Australian and US stocks for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha and New Scientist, among others.
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