The world of cryptocurrencies has witnessed explosive growth over the past decade, with Bitcoin taking center stage. However, the landscape of digital currencies also includes a diverse array of altcoins, some of which offer very exciting opportunities for investors.
By definition, altcoins, or alternative cryptocurrencies, are digital assets that evolved after the pioneering of Bitcoin. These emerging cryptocurrencies often introduce innovative features or aim to solve specific problems. It is also because of these unique use cases, that altcoins tend to be a riskier, yet at the same time also potentially more lucrative investment.
The best altcoins to buy in 2023 are:
- Ethereum – The largest altcoin and the crypto of the leading smart contract blockchain
- BNB – The largest Exchange token and the top challenger to Ethereum’s DeFi supremacy
- Litecoin – A Bitcoin fork aimed at minimalizing the cost of transactions
- Optimism – A leading Layer 2 scaling solution for Ethereum’s network
- Render Token – The native token of Render, the leading decentralized GPU power platform
- Aptos – A revolutionary and highly scalable enterprise-grade Layer 1 blockchain
- Shiba Inu – The second most popular meme cryptocurrency
- The Open Network (TON) – A high-performance blockchain initially developed by Telegram
- XRP – The leading blockchain for international money transfers
- Solana – A fast and low-cost blockchain for decentralized apps and finance
Top 10 Altcoins to Invest in Now: Exploring the Best and Newest Altcoins in 2023
In this article, we delve into the top altcoins of 2023 and highlight each coin’s unique features, development progress, and potential for growth. By exploring the innovative altcoins on the rise, we aim to provide insights into the evolving landscape of cryptocurrencies and offer a fresh perspective on the best investment opportunities available in 2023.
1. Ethereum – The largest altcoin and the native asset of the leading smart contract blockchain
As the second-largest cryptocurrency and the largest and dominant DeFi platform, Ethereum (ETH) is an essential component of every altcoin-oriented portfolio.
Ethereum is an open-source blockchain that pioneered smart contract functionality in 2015. While the Ethereum network can also facilitate transfers of value between different Ethereum addresses, its key added value is in the execution of various smart contracts. Throughout their existence, Ethereum’s smart contract capabilities have facilitated numerous blockchain-powered innovations such as ICOs, DeFi, NFTs, and DAOs. In addition to the native asset (Ether), the Ethereum network hosts numerous ERC20 tokens (from exchange tokens to DeFi tokens and stablecoins), which further extend the Ethereum environment’s reach, liquidity, and utility.
With its successful transition to Proof-of-Stake and upcoming scalability improvements, Ethereum has become significantly more energy-efficient and poised for increased transaction capacity.
Despite countless challengers, such as Cardano, Solana, TRON, and Cosmos, some of which were even dubbed “potential Ethereum killers”. Nevertheless, to this day, Ethereum still reigns supreme as the leading smart contract platform. In fact, Ethereum takes the top spot with a substantial margin in terms of total value locked, leaving all other competitors far behind.
Why is Ethereum a good altcoin to buy in 2023?
Purchasing ETH can be a good long-term investment due to Ethereum’s fundamental role as the backbone for numerous crypto projects. The Ethereum blockchain serves as the foundation for a wide range of decentralized applications and services, including popular decentralized exchanges like Uniswap and dYdX, liquid staking services, as well as the booming market of non-fungible tokens (NFTs). Furthermore, the investment in Ethereum is not just a bet on the value of ETH itself, but also on the long-term success of the broader crypto industry.
As the foundation of many crypto projects, Ethereum’s growth and adoption directly impact the ecosystem’s overall development. In addition, the Ethereum blockchain has an active developer community and regularly receives updates. As part of the most recent big revamp, the Shanghai Upgrade, the unstaking of staked ETH has finally been enabled. However, despite the ability to withdraw staked ETH (some of which had been locked for more than 2 years), the amount of staked ETH has continued to grow, indicating strong confidence in Ethereum’s staking mechanism and Ethereum’s future in general.
2. BNB – The largest exchange token and Ethereum’s top challenger
BNB is a cryptocurrency that was launched by Binance, one of the largest cryptocurrency exchanges in the world. Initially called the Binance Coin, this ERC-20 standard token was used to pay for trading fees and other services on the Binance exchange with a discount. However, Binance launched its own blockchain, the Binance Chain, in April 2019, and BNB was migrated from the Ethereum blockchain to the Binance Chain shortly thereafter.
This is how BNB became the native asset of the BNB chain and was granted a whole new range of utility. The BNB chain is a smart chain that facilitates fast transactions and lower fees compared to the Ethereum network, which made it a popular choice among users and developers. BNB has a limited supply of 200 million coins.
Why is BNB a good altcoin to buy in 2023?
While BNB is decentralized by design, it is important to note that its strong ties to Binance making it a rather centralized cryptocurrency in practice. BNB’s market performance and long-term success are dependent on the current sentiment on Binance and the long-term success of this crypto conglomerate. It is, therefore, totally natural that BNB’s price fell by more than 20% in the days after June 5, 2023, when Binance faced a lawsuit from the U.S. Securities and Exchange Commission. At the time of writing BNB is still trading way below $300, which is considered a heavily discounted price for those who believe that the legal battle with the SEC will have no further repercussions on Binance’s business outside the U.S.
Although the legal and regulatory developments around Binance’s business will likely have a large impact on BNB’s future price movements, there are several more factors that influence BNB’s market valuation. These include the BNB’s utility and its diminishing supply as Binance consistently conducts buybacks and token burns using a portion of its profits. In addition, BNB also employs a real-time burning mechanism called BEP95 (the BNB Chain’s equivalent of Ethereum’s EIP-1559), which further contributes to BNB’s scarcity and potential value appreciation.
3. Litecoin – A Bitcoin fork aimed at minimalizing the cost of transactions
Litecoin, one of the earliest altcoins launched in October 2011, is heavily based on Bitcoin’s codebase as it emerged through a direct fork of the Bitcoin chain. While Litecoin shares a lot of similarities with Bitcoin, such as using Proof-of-Work for consensus, it also has several key differences that offer some notable advantages over Bitcoin. If Bitcoin is considered to be “digital gold”, then Litecoin is without a doubt “digital silver”.
Litecoin is often favored for its lower transaction costs and faster processing, making it a more practical choice for everyday payments. Litecoin also utilizes a different cryptographic hash algorithm: the script hash function as opposed to Bitcoin, which makes use of the SHA-256. Litecoin has a four times higher maximum coin supply (84 million) and a faster block time of 2.5 minutes. Litecoin also supports MimbleWimble privacy technology, which Bitcoin doesn’t.
Why is Litecoin a good altcoin to buy in 2023?
Litecoin found its spot on the top of our list of best altcoins to buy in 2023 for several reasons. Firstly, the Litecoin halving is expected to occur in the summer of 2023. The halving event, which is estimated to take place around August 5, will reduce the block reward from 12.5 LTC to 6.25 LTC. Halving events have historically had a positive impact on Litecoin’s price as they diminish the influx of new LTC to the circulating supply. Secondly, Litecoin’s adoption of new technologies, such as the integration of the MimbleWimble privacy protocol, showcases the project’s commitment to innovation and constantly enhancing utility. An example of such commitment is also the recent launch of the Ordinals protocol on Litecoin.
The protocol, initially created by developer Casey Rodarmor to “inscribe” text and imagery on the Bitcoin network, made its way to the Litecoin blockchain in May 2023 and sent activity and transaction volume on Litecoin into the sky. And lastly, Litecoin is one of the oldest and most respected cryptocurrencies in the market. Its long track record demonstrates longevity, stability, and the ability to maintain a significant market cap despite the emergence of numerous competitors.
3. Optimism – A leading Layer 2 scaling solution for Ethereum’s network
Optimism is an Ethereum layer 2 solution that utilizes Optimistic Rollups technology to alleviate the congestion on the layer 1 blockchain. By offloading a significant portion of transaction and computation data, Optimism enables faster and more cost-effective operations. This scalability enhancement opens up new possibilities for decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and other use cases that can become prohibitively expensive when executed on the main Ethereum chain.
The Optimism (OP) token was introduced in May 2022 and serves as the native token and governance token of the Optimism protocol. Holders of OP gain the ability to participate in crucial decision-making processes concerning project incentives, protocol upgrades, and the allocation of treasury funds. The OP token was launched simultaneously on various cryptocurrency exchanges, including Binance and KuCoin, recognized as reputable platforms and the best places to buy altcoins.
Why is Optimism a good altcoin to buy in 2023?
Optimism is a promising altcoin investment for 2023 due to its significant transaction growth, scalability advantages over Ethereum, and unique governance mechanics. The Optimism network saved already over $1 billion in gas fees saved since its launch, and this number will only keep growing as more DeFi and blockchain gaming projects build on Optimism or migrate to this cheap and efficient Ethereum Layer 2 network.
In addition, Optimism just recently (beginning of June 2023) underwent the Bedrock upgrade, which significantly reduced transaction fees (up to 47%), provided greater network security, and enhanced Optimism’s compatibility with Ethereum. Because of all these developments, Optimism deserves the #4 spot on our list of the best altcoin investments you can make in 2023.
5. Render Token – The native token of the leading decentralized GPU powered platform
Render Token (RNDR) is the utility token of The Render Network, a pioneering provider of decentralized GPU-based rendering solutions. As an ERC-20 token, RNDR serves as the primary means of payment for animation, motion graphics, and VFX rendering on The Render Network.
The Render Network operates through a synergistic combination of three essential components: creators, node operators, and OctaneRender. By leveraging the Render Network, creators gain access to the immense computing power of GPUs, enabling them to render final images at significantly faster speeds and reduced costs compared to traditional methods. Node operators play a crucial role by renting out their unused GPU capacity to creators. In exchange for their contribution, node operators receive RNDR tokens as compensation for the time spent rendering. This decentralized model allows for the seamless integration of GPU compute power and establishes a connected economy of 3D assets within The Render Token network.
Why is Render Token a good altcoin to buy in 2023?
The biggest advantage of The Render Network and the associated Render Token is that the project offers a solution to a real-world issue. The Render Network creates a decentralized marketplace for GPU power, which has not existed before. In addition, both creators, as well as owners of powerful GPUs, can benefit from using The Render Network. In addition, the need for GPU power and, thereby also, Render Network’s services could surge in the near future because of the rapidly growing adoption of AI-powered tools. Certain aspects of prominent AI technologies like ChatGPT rely heavily on substantial GPU resources, which can be effectively harnessed through the Render Network’s crowdsourcing approach.
In fact, The Render Network has already integrated the Stable Diffusion deep learning model, which allows users to generate AI-created renderings using decentralized GPU power. To conclude, The Render Network stands at the very forefront of transformative technology and fills in a very specific market segment with its unique GPU-sharing solution.
6. Aptos – A highly scalable enterprise-grade Layer 1 blockchain and one of the best new altcoins
Aptos, a novel cutting-edge layer 1 blockchain, seeks to revolutionize the internet and facilitate a seamless transition from Web2 to Web3. Developed by former Meta (previously known as Facebook) employees who were involved in the Diem stablecoin project (initially called the Libra project), Aptos showcases high levels of innovation.
Although Aptos is a relatively new player in the cryptocurrency industry, this super-efficient blockchain has already left an unneglectable impact since its mainnet launch in October 2022. With the ability to process up to 100,000 transactions per second (TPS), Aptos surpasses the transaction capacities of prominent cryptocurrencies like Bitcoin and Ethereum, as well as traditional payment processors such as Mastercard and Visa.
Why is Aptos a good altcoin to buy in 2023?
Aptos stands out as a compelling altcoin investment due to its impressive capabilities, such as the blockchain’s remarkable throughput and low latency. In fact, Aptos boasts a median Time to Finality (TTF) value of less than a second, which makes it one of the fastest major blockchain networks. In addition, Aptos is developed by experienced ex-Meta developers and incorporates several innovative scaling solutions like internal and homogeneous state sharding, which further enhance its performance.
Aptos’ design is modular, which allows frequent and seamless deployment of upgrades. Last but not least, Aptos enjoys strong financial support from major crypto investors, including Binance Labs and Jump Crypto. This backing not only provides valuable resources but also adds credibility to the project. All these factors make Aptos a highly promising cryptocurrency poised for success in the ever-evolving blockchain landscape.
7. Shiba Inu – The second most popular meme cryptocurrency
Shiba Inu (SHIB) emerged in August 2020 as a blockchain platform, originally conceived as an experiment in decentralized community development. However, the project’s amazing initial performance quickly captured the attention of the market. The investments and developmental efforts have, over time, transformed Shiba Inu from a mere experimental blockchain into a fully operational ecosystem accommodating various decentralized applications.
Within this ecosystem, you can find the native ShibaSwap decentralized exchange, the SHIB Burning Portal, as well as several NFT and metaverse projects. Supporting this thriving ecosystem are three tokens: SHIB, LEASH, and BONE. SHIB, which is the primary incentive token of the platform, is firmly positioned within the top 20 cryptocurrencies in terms of market capitalization. The project is overseen by a pseudonymous figure called Shytoshi Kusama, who serves as a volunteer project lead, and boasts an extensive social media following known as the “Shib Army.”
Why is Shiba Inu a good altcoin to buy in 2023?
Shiba Inu (SHIB) has the potential to generate strong returns due to factors such as the upcoming launch of a Layer 2 network called Shibarium, which will improve transaction speed and reduces the costs of transactions and the operational costs of the network in general. In fact, Shibarium’s testnet called “Puppynet” is already live and is showing some promising activity with over 20,000,000 transactions and 16,700,000 unique wallet addresses interacting with this layer 2 test network in the first month of its existence.
Shibarium will also further lower the barrier to entry into the Shiba Inu environment, which could potentially open the doors to decentralized gaming and NFT projects. When fully deployed, Shibarium will utilize the BONE token for gas fees, but the BONE proceeds will be used to purchase and burn SHIB. Additionally, the “Shib Army” seems dedicated to burning as many SHIB tokens as possible through SHIB burning parties. Both of these burning “mechanisms” could actually decrease the SHIB supply enough to drive up the token’s value. SHIB is also one of the best cheap altcoins to buy in 2023.
8. The Open Network (TON) – A high-performance blockchain initially developed by Telegram
The Open Network (TON) is a third-generation proof-of-stake blockchain designed for rapid and efficient transactions. TON’s development started in 2018. At that time, the project was led by the Durov brothers, the founders of Telegram Messenger, and the TON acronym stood for Telegram Open Network.
In October 2019, Telegram faced significant legal challenges in the form of a lawsuit filed by the United States Securities and Exchange Commission (SEC). The SEC alleged that the initial coin offering (ICO) conducted by Telegram to fund TON violated securities laws. As a result of the lawsuit, Telegram decided to halt the development of TON, and the project did not fully launch as originally intended. Nevertheless, users and developers joined forces to form an open TON community, which has since supported and continued the project’s development. Toncoin (TON) serves as the native cryptocurrency of The Open Network.
Why is TON a good altcoin to buy in 2023?
Toncoin (TON) represents a compelling altcoin investment opportunity, driven by recent developments surrounding The Open Network. In April 2023, The Open Network achieved integration with Telegram, the company that initially spearheaded TON’s development. This integration introduced a new crypto feature, enabling users to purchase a premium subscription using Toncoin (TON) directly within the Telegram platform. This move indicates that Telegram has not abandoned The Open Network and suggests the potential for further utilization of TON within Telegram or other platforms in the future.
Moreover, in May 2023, The Open Network (TON) launched the TON Accelerator Program, which will allocate up to $25 million in funding to projects within the TON ecosystem. The primary focus of the program is to support key projects, especially those in the decentralized finance (DeFi) sector, with investments ranging from $50,000 to $250,000 per project. The program not only provides funding but also offers partnerships and mentorship. Accelerator partners such as Gotbit, Web3port, Tonstarter, TEB, and Cypher Capital will contribute their expertise to the program, further enhancing its potential for success.
9. XRP – The leading blockchain for international money transfers
Launched in 2012, Ripple (XRP) is a cryptocurrency developed by David Schwartz, Jed McCaleb, Arthur Britto, and Chris Larsen. Up to this day, the majority of XRP supply is placed in escrow accounts owned by Ripple Labs, initially known as the OpenCoin company.
The Ripple Network utilizes the Ripple Protocol Consensus Algorithm (RPCA), which relies on trusted validators instead of independent decentralized nodes to validate transactions and secure the blockchain. This allows Ripple to offer fast and low-cost transfers, particularly suitable for remittances and international payments. Naturally, Ripple has also integrated XRP into most of its products, including On-Demand Liquidity (ODL), which facilitates efficient cross-border money transfers in collaboration with cryptocurrency exchanges.
Why is XRP a good altcoin to buy in 2023?
Ripple (XRP) presents potential as an altcoin investment for several reasons. Despite facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) regarding the alleged sale of unregistered securities, there are several positive indicators for Ripple. One favorable aspect is the likelihood of a positive outcome for Ripple in the lawsuit, as Ripple Labs have been actively defending their case, asserting that XRP should not be classified as a security.
If Ripple Labs successfully resolves the lawsuit, it could remove regulatory uncertainty and provide a significant boost to XRP’s price. Furthermore, Ripple’s partnerships and adoption of its products, such as On-Demand Liquidity (ODL), demonstrate the real-world utility of XRP. The efficient and affordable cross-border money transfers facilitated by Ripple Network also contribute to the potential value and demand for XRP.
10. Solana – A fast and low-cost blockchain for decentralized apps and finance
Solana is a blockchain platform best known for its scalability and efficiency. With a remarkable throughput of 65,000 transactions per second (TPS) and low fees, it poses strong competition to Ethereum. Solana achieves this through an innovative proof-of-history consensus algorithm and timestamping system.
This scalability has made Solana a preferred choice for NFT projects and decentralized finance applications. The platform’s backing from prominent investors like Polychain and Andreessen Horowitz provides the necessary resources for future ecosystem development, making it even more attractive to blockchain developers and also investors.
Why is Solana a good altcoin to buy in 2023?
Despite the consistently growing adoption of Solana, its native token, SOL, currently trades at around $15, which is significantly below its all-time high of $260 in November 2021. The current low valuation of Solana comes as a result of several factors, including the market-wide effect due to the crash of the FTX exchange, which hit Solana much harder than other altcoins, due to its direct financial ties with Sam Bankman-Fried enterprises.
The fact that SOL is at a market low suggests a potential for substantial price growth in the future. Furthermore, Solana stands out for its progressive approach to integrating artificial intelligence (AI). The recent integration of a ChatGPT plug-in, enabling users to directly query on-chain data through the interaction with this sophisticated language mode, demonstrates Solana’s commitment to AI integration. If Solana continues to pursue deeper AI integration, the potential for SOL’s long-term growth could become even more promising.
The bottom line: You should also consider these things when picking your next altcoin investment for 2023
While we have featured only the top 10 best altcoins for 2023, there is a plethora of other cryptocurrencies available, some of which might even be a better fit for some specific types of investors. This is because the investment decisions of each individual investor are ultimately based on his/her own financial goals and risk tolerance. Investors with a very high-risk tolerance, might consider exploring more speculative investments or even try to successfully identify the next Shiba Inu in their hunt for substantial returns. More reserved investors, on the other hand, will steer clear of highly volatile memecoins but likely find more sense in buying cryptocurrencies with strong long-term potential.
Anyhow, if you try to identify the next potentially lucrative altcoin on your own, make sure to do your own research (DYOR). To successfully weed out scams and pump-and-dump projects that are doomed to fail, it is necessary to take several factors into account. These include but are not limited to the development team, the underlying technology, potential use cases, and market demand and adoption of the project’s solution.
