Fledgling coins of 2023

2022 was not a good year for the cryptocurrency market. We hit another bear market with macroeconomic factors and a number of bumps. But there is hope for a new bull run and a new alt-season in 2023. There are some new coins to watch out for:

Aptos (APT)

APTOS is a native Aptos Level 1 blockchain token created by Aptos Labs. To maximize the security and scalability of the network, Aptos uses the Move programming language. Also, Aptos is the first strong representative of the new generation L1-blockchain, which can become a "killer" if not Ethereum, then other "Ethereum killers" like Near or Solana.

Since the Aptos ecosystem is just starting to take shape, APT could perform well in 2023. Key factors:

• more than $300M in funds raised. That's enough to develop the ecosystem, encourage a community and a bounty program;
• prospective blockchain with high bandwidth and a new programming language;
• relatively few partnerships and integrations, which will only increase in 2023.

ApeCoin (APE)

ApeCoin is an APE ecosystem token (BAYC, MAYC and other YugaLabs collections) that is backed by ApeCoin DAO. ApeCoin has several major partnerships, including the Gucci boutique chain, as well as a community that is constantly creating usecases for the token: opening a native marketplace. A few arguments in favor of this coin:

• a strong community that actively uses the token in ecosystem projects and for incentives.
• the potential launch of Otherside, a top metaverse in which APE will play the role of a core internal coin.
• a strong connection to the NFT marketplace, which opens up great opportunities for DeFi services using NFT.

The main driver of APE growth in 2023 will most likely be the launch of Otherside, so it is important to monitor how the developers are doing and what usecases Apecoin will have in the Monkees meta universe.

Stepn (GMT)

Many of you were surprised to see this token on the list, but it really fired loudly in 2022. Stepn was the driving force behind the rather short M2E trend and gave early GMT and sneaker holdings a run for their money. Now GMT is far from its ATH, but as long as Stepn is alive there is hope for a better future:

• Stepn is expanding its ecosystem through third-party products, like a native marketplace;
• the project team is trying to fix tokenomics bugs and add new mechanics/products to restore activity;
• M2E will probably still make itself known in the next bull cycle.

Of course, the chances of Stepn returning to the market "with two legs" are slim, given the dynamics of active users. But let's give credit to the "king" M2E - he made us explore the real world around us and breathe fresh air.

Promising coins for the long term

Talented developers and strong projects have given us many sustainable assets with which to fill a portfolio even in 2023 with hopeful X's. A few coins that could prove profitable in the long run:

Bitcoin (BTC)

There is probably no need to comment here. Bitcoin is Bitcoin, its own trend and its own market. Most investors in "digital gold" prefer a long-term hold combined with an average dollar value strategy. This strategy tends to pay off during the bull run. Buying BTC is worthwhile because:

- its price is far from an all-time high;

- Bitcoin is still perceived as a protective asset during a time of rising inflation and soft monetary policy by the FRS. And it could reach this rate as early as 2023;

- BTC retains the main advantages of cryptocurrency: it is resistant to censorship, decentralized and available to anyone.

However, the factors deterring investors do not change over time: the high cost and low profitability potential compared to altcoins, as well as the lack of smart contracts and, as a consequence, the DeFi-ecosystem.

Ethereum by the end of 2022 can be considered one of the strongest long-term assets. The network has successfully passed The Merge, ETH has become deflationary, and the blockchain has grown with several L2 networks, allowing to solve scalability and transaction cost problems. In addition, ETH is now four times cheaper than its ATH, which also speaks to the possible potential at the next bullrun. The main arguments in favor of ETH:

• the largest DeFi and NFT ecosystem on the market, which continues to proliferate;
• deflationary Tokenomics. Over time, the amount of ETH in circulation will only shrink;
• one of the oldest cryptocurrencies, which has survived many market cycles and has only gotten stronger.

At the same time, the shadow of regulation seems to be looming over Ethereum. Already, more than 70% of the network's validators are processing transactions subject to OFAC sanctions, reducing the blockchain's censorability. In addition, the issue of classifying ETH as a security has not been definitively closed.

Polkadot (DOT)

Polkadot is another tool that can show its usefulness during the consolidation and unification of the crypto market. The project allows crosschain transactions and data exchange between parachemes, combining them into a single infrastructure. Paired with the Kusama test network, Polkadot provides developers with convenient tools to build crosschain platforms, services and tokens. The token is worth paying attention to because of:

• bilder activation after the launch of the new messaging channel between networks - XCM;
• increased demand for creating crosschain products, primarily for DeFi;
• opportunity to build an alternative global ecosystem not tied to a single blockchain.

If the crosschain ecosystem trend does take off, DOT investors could see profits in 2023.

Binance coin (BNB)

At the end of 2022, BNB can be called a winner, as Binance has strengthened its position, increased its ecosystem and, after the bankruptcy of FTX, remained the only super-platform in the market. In addition, Binance is also the BSC blockchain's second-largest TVL, and BNB is its native token. Arguments for BNB:

- deflationary nature. BNB is constantly being burned and its supply is shrinking;

- BNB is necessary for access to many Binance products, from commission discounts to participation in seals and IDOs;

- the credibility of Binance attracts many users, and the functionality, interface and general accessibility of the exchange makes it convenient for newcomers.

The only factor pushing away from this coin is the gossip around Binance by Reuters and some other publications. If it turns out that these rumors have real grounds, then Binance may clash with the regulators and law enforcement in the United States and then the fate of BNB will be in question.

Solana (SOL)

Solana did well throughout the year, following the general trend. But after the bankruptcy of FTX, it turned out that Alameda Research is the biggest holder of SOL, which made the investors worried. However, Solana still has a couple of trumps:

• a strong NFT ecosystem. So far, competitors have failed to take away Solana's status as a major flip network and freemint factory;
• technical advantages. The network still has high bandwidth and cheap transactions.

However, Solana's meme "weekend" as well as the 600M SOL in the FTX portfolio that could fall under potential liquidation is holding many investors back. It is worth approaching this coin with special caution: if the sale even begins, even all the "believers" will not be able to redeem such a number of tokens.

Conclusion

The composition of your portfolio determines how much you lose in a bear market and how much you gain in a bull market. Above is a list of coins that may perform well in the next year, but that does not make them potential candidates to add to your portfolio.  

Including any token on this list is not a valid reason to ignore your risk management strategy or rebalance a well-performing portfolio - fit the assets into your strategy, not tailor your strategy to the assets.