As we've stepped into October 2023, the hunt for the best altcoins to buyin the world of cryptocurrency is on everyone's mind. People want to find five altcoins that will give them the chance to earn more money.
Whether you're a pro at this or just starting, finding the best altcoins can be a thrilling journey, but it comes with some risks. In this article, we'll explore the top 5 altcoins to buyin October 2023 to get 20x portfolio growth.
The official Lido DAO logo
Lido is a decentralized autonomous organization (DAO) and liquid staking protocol that emerged before Ethereum's well-known "Merge," which marked the introduction of staking in the Ethereum ecosystem.
Lido effectively addressed the challenge of Ethereum's 32 Ether staking requirement, offering users the ability to access the locked value of their staked tokens through its innovative Liquid Staking solution. This means Lido users can maintain the liquidity of their staked assets by using a substitute stToken, allowing them to earn additional yields through participation in the decentralized finance (DeFi) markets.
Lido's community plays a pivotal role in steering the direction of the Lido project through decentralized governance, enabled by the Lido DAO's LDO token. While Lido's origins lie in Ethereum, it has expanded its support to include various other Proof of Stake (PoS) blockchains. Lido's overarching mission is to simplify and decentralize the staking process, making it accessible to a broader audience.
When an Ethereum (ETH) holder engages in staking through Lido, they receive stETH, an stToken that serves as a placeholder for the ETH locked in the staking process. stETH can be utilized like regular ETH across various DeFi platforms that have integrated support for Lido's stTokens. These stTokens have gained recognition and usage within popular DeFi applications such as Metamask, AAVE, Uniswap, and others.
By acquiring stTokens, users can enhance their yield on their staked assets by unlocking the value of tokens held within the staking pool. Upon staking, users receive stTokens in exchange for their locked assets.
stTokens essentially act as virtual representations of the underlying staked assets, allowing Lido users to employ them for DeFi yield generation, decentralized lending, liquidity provision, decentralized exchange (DEX) trading, and more.
Lido initially focused on Ethereum but has since expanded its support to include several additional blockchains like Polygon, Solana, Polkadot, and Kusama. Each supported digital asset is represented by its corresponding stToken. In addition to stTokens, Lido's decentralized autonomous organization (DAO) leverages LDO, which is the governance token facilitating decentralized decision-making within the DAO.
Despite these accomplishments, LDO currently maintains a market cap of just $1.4 billion, a value that can still be described as undervalued given its prominence within the decentralized finance (DeFi) sector. Should a bullish market prevail, LDO's market cap has the potential to soar beyond $30 billion, representing a remarkable 20x return on investment from its current trading price of $1.61.
The official logo of Arbitrum
The ongoing transaction fee crisis on the Ethereum blockchain has significantly impeded its potential for exponential growth. Among the various solutions proposed to alleviate network congestion and high fees, Arbitrum technology stands out.
Arbitrum's mission is to reduce network congestion and transaction costs by shifting a substantial portion of the computational and data storage workload away from Ethereum's primary network, often referred to as layer 1 (L1). Ed Felten, a professor of computer science and public affairs at Princeton, co-founded Offchain Labs in 2018, the company behind Arbitrum. Arbitrum's approach, which involves off-chain data storage, is categorized as a layer 2 (L2) scaling solution, built on top of the existing Ethereum network.
The Arbitrum ecosystem comprises four essential roles: verifiers, a virtual machine (VM), a key, and a manager. Arbitrum employs a straightforward cryptocurrency model, allowing parties to implement smart contracts as VMs that encapsulate the contract's rules. VMs are essentially programs that operate on the Arbitrum Virtual Machine (AVM) Architecture.
Each VM is associated with a specific set of managers, a designation made by the VM's creator. Importantly, the Arbitrum protocol grants any honest manager the authority to enforce the VM's behavior in accordance with its underlying code.
Parties with a vested interest in the VM's outcomes have the option to appoint someone they trust as a manager or act as managers themselves. Typically, the number of managers for many contracts will be relatively limited.
Rather than necessitating every validator to replicate every VM's execution, the Arbitrum approach streamlines the advancement of the VM's state at a significantly lower cost through the involvement of managers. Verifiers are only required to maintain a record of the VM state's hash, as opposed to the entire state. Arbitrum incentivizes managers to collaborate and reach consensus on the VM's operation through an out-of-band agreement.
Verifiers in the Arbitrum system will only accept state modifications that enjoy unanimous support from all of the appointed managers. In the rare event of a disagreement between two managers regarding the expected behavior of the VM, a bisection technique is employed to narrow down the dispute to the execution of a single instruction.
Subsequently, one of the managers provides a straightforward proof for that particular instruction. Both VMs and involved parties have the ability to exchange messages and digital assets.
When a manager issues a disputable statement, and another manager raises a challenge, the bisection protocol comes into play. Both managers have committed a currency deposit as part of this process.
One notable feature of the Arbitrum chain is that when a decentralized application (DApp) operates within its ecosystem, you have the flexibility to select your group of validators responsible for achieving consensus. This stands in contrast to Ethereum, where each validator is required to oversee all the network's applications.
As a result, validators working on one Arbitrum app are isolated from interactions with other Arbitrum apps. This localized approach reduces the need for extensive node-to-node communication, leading to expedited transaction processing.
With a current market cap of $1.08 billion, it has yet to experience the same explosive growth witnessed by its competitors in 2021, primarily due to its token launch occurring during the bear market. Nevertheless, Arbitrum's resilience even in a bear market indicates that it possesses the potential to ascend to the ranks of the top 10 cryptocurrencies during a bull market.
The official logo of Stacks
Stacks is a layer-1 blockchain that operates in parallel with Bitcoin's blockchain, utilizing it for settlement purposes. Within the Stacks blockchain, developers have the capacity to construct decentralized applications and create tokens. Smart contracts employed on the Stacks network are built using a programming language known as Clarity.
STX, the Stacks cryptocurrency, serves as the primary coin of the Stacks blockchain, although it accommodates the creation of various other cryptocurrency tokens. Stacks is an open-source mainnet blockchain that establishes a connection to Bitcoin's blockchain through a consensus mechanism called proof-of-transfer (PoX).
Essentially, the Stacks network generates blocks in tandem with Bitcoin's blockchain but operates independently, not as a sidechain. Participants in the Stacks network, known as Stackers, can lock up a specific quantity of STX coins to contribute to the Stacks blockchain. In return, they receive Bitcoin (BTC) as a reward for the duration their STX remains locked.
This BTC reward originates from the BTC that miners on the Stacks blockchain must send before they can create blocks on the Stacks network. These miners, in turn, earn STX through block rewards and transaction fees generated from their mining activities on the Stacks blockchain. The Stacks blockchain aims to transition to a consensus algorithm centered around asset-burning, known as proof-of-burn (PoB), in the future.
While Stacks blockchain adheres to the same time constraints for block production as Bitcoin's blockchain, it employs microblocks to facilitate scalability. Microblocks represent smaller blocks that occur between regular network blocks. The security of the Stacks network is derived from its interconnection with Bitcoin's blockchain.
Despite its remarkable utility, Stacks (STX) maintains a relatively modest market capitalization of just $715 million. This valuation appears notably undervalued, especially considering the immense possibilities it unlocks for developers on the Bitcoin network. Such a unique value proposition ensures that Stacks remains firmly in the spotlight for investors, positioning it as a potential billion-dollar token capable of delivering substantial 20x returns.
The official logo of Kava
Kava stands as a Layer 1 blockchain with a strong emphasis on Web3 capabilities and smart contracts, harmonizing the rapidity and interconnectivity found in Cosmos with the development potential of Ethereum. Kava seamlessly integrates with the Ethereum Virtual Machine (EVM) and harnesses the Tendermint consensus protocol for rapid block finality. It further leverages the highly scalable network infrastructure of the Cosmos ecosystem to deliver exceptional throughput.
Through its utilization of the Cosmos SDK and the Inter-Blockchain Communications (IBC) Protocol, Kava achieves integration with over 30 other Web3 blockchains, granting users access to the extensive liquidity pool surpassing $60 billion within the Cosmos ecosystem. Kava boasts a thriving community of developers who are actively creating a diverse array of Decentralized Applications (DApps) on its Layer 1 chain to address the requirements of modern Web3 use cases.
Kava's core focus centers on providing a versatile, cost-effective, highly secure, and scalable multichain Web3 experience. Operating as a Proof of Stake (PoS) blockchain, the native KAVA token serves as a multipurpose utility and governance token. Notably, the KAVA token was initially launched in 2019 through the Binance Launchpad incubator, and all token vesting restrictions have been lifted.
Kava offers a unique system where users can deposit their digital assets, locking them to establish a collateralized debt position (CDP). This CDP is essentially a smart contract that utilizes the deposited assets as collateral to generate a decentralized loan denominated in the USDX dollar-backed stablecoin. Once the CDP is created, a corresponding amount of USDX is minted and sent to the user.
Subsequently, the user has the option to repay the CDP, fulfilling their debt obligation and thereby closing it. At this point, the initially deposited digital assets, which were used as collateral, are unlocked and returned to the user. However, if the debt-to-collateral ratio falls due to price volatility or other factors before the loan is settled, the collateral can be liquidated to cover the debt position.
This streamlined and automated process involving CDP creation, stablecoin loans, and digital asset collateralization is the foundation of Kava's decentralized lending platform. When a user initiates a CDP, they cover the associated fees with KAVA tokens, and these fees are subsequently burned.
This burning process reduces the total supply of KAVA, exerting upward price pressure on the token. KAVA tokens also serve as governance tokens, enabling users to participate in voting on governance proposals. Furthermore, users have the opportunity to secure the network by staking KAVA tokens, earning a passive income in return for their participation.
KAVA's native token has already gained substantial attention and is regarded as one of the most closely monitored Layer 1 native tokens. With a current market capitalization of $500 million, it's evident that this altcoin still has significant room for growth and development.
The official Trust Wallet Token logo
The Trust Wallet Token (TWT) serves as the essential utility token driving the Trust Wallet ecosystem. Trust Wallet, a mobile-based cryptocurrency wallet, offers a secure and user-friendly platform for managing and exchanging a wide array of cryptocurrencies. TWT was introduced in 2020 to incentivize active participation and engagement within the Trust Wallet community.
Built on the Binance Smart Chain (BSC), TWT leverages a blockchain network tailored for executing smart contract-based applications. BSC is known for its capacity to facilitate faster and more cost-effective transactions compared to alternative networks, rendering it an appealing choice for both developers and users.
As a utility token, TWT holds multiple functions within the Trust Wallet ecosystem. These functions encompass covering network transaction fees, partaking in governance decisions, accessing premium features, and more. TWT holders can also opt to stake their tokens, thereby earning rewards that bolster the token's intrinsic value.
The Trust Wallet Token (TWT) made its debut on July 30, 2020, with an initial fixed supply of 1 billion TWT tokens, and no further issuance is planned. This fixed supply model enhances the token's scarcity, potentially increasing its value over time as the platform expands and demand for the token grows.
Trust Wallet Token (TWT) serves as the native cryptocurrency of Trust Wallet, a mobile wallet supporting over 40 different blockchains. TWT's core purpose revolves around incentivizing user engagement within the Trust Wallet ecosystem.
Similar to other cryptocurrencies, TWT generates revenue through transaction fees. Users are required to pay a fee in TWT each time they conduct a transaction, constituting a crucial income source that fuels the ongoing development and maintenance of Trust Wallet.
TWT also capitalizes on a process known as staking, where users hold their TWT in their wallet to support the operations of blockchain networks. In return for their contribution, users earn additional TWT tokens. This approach not only bolsters platform liquidity and stability but also adds to its revenue streams.
Trust Wallet has innovatively encouraged active user participation using TWT. Users can earn TWT tokens as rewards for engaging in platform activities, such as voting for their preferred projects or providing feedback. This engagement not only fosters a dynamic and involved community but can also indirectly contribute to revenue by boosting the value of TWT tokens.
Trust Wallet's native token, TWT, gained significant popularity after the FTX crypto exchange experienced a major crash in 2022, and its upward trajectory has not ceased. As the cryptocurrency market enters a bullish phase, self-custody solutions are expected to take center stage for asset storage. With a current market capitalization of $411 million, TWT has the potential to rapidly ascend to an $8 billion market capitalization in the bullish market conditions.
Altcoins (alternative coins) is a term used to describe all cryptocurrencies other than Bitcoin (CRYPTO:BTC). Their name comes from the fact that they're alternatives to Bitcoin and traditional fiat money. The first altcoins were launched in 2011, and, by now, there are thousands of them.
Some of the most well-known Altcoins (based on market cap) are Ethereum, Ripple, Tether, Bitcoin Cash, Bitcoin SV, and Litecoin.
Ethereum is arguably the best altcoin to buy today, largely because of its massive upside potential. It currently is the largest smart contract platform and is also home to the greatest selection of DeFi, dApps, metaverse, and Web3 projects.
Looking for the best altcoins to buy in the cryptocurrency world is like searching for hidden treasure. We've talked about five altcoins that seem promising for October 2023. Remember, though, that this world changes fast, and what's good today might not be tomorrow. So, do your research, be careful with your money, and keep an eye on the latest news to make smart choices. Good luck with your investments!