Prediction: These 3 phenomenal cryptocurrencies are set to rise

There are a lot of cryptocurrencies out there — thousands, in fact. Each has passionate advocates who claim it will deliver life-changing returns and be the next big thing. But the reality is that only a small minority could actually be considered solid long-term investments.

For those looking for less risky options and gains that only cryptocurrencies can offer, three in particular stand out.

Let’s take a closer look at ensue (AAVE -0.74%), Ethereum (ETH -0.58%)and Bitcoin (BTC -1.35%) — three cryptocurrencies with solid fundamentals and compelling future prospects.

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1. Aave: The backbone of the DeFi economy

Aave is a decentralized finance (DeFi) protocol that has quickly become a cornerstone of the growing digital economy. In simple terms, Aave works like a bank. It allows users to provide their crypto assets to earn returns and also allows them to borrow against those assets. This dual functionality has made Aave a key player in decentralized finance, which aims to eliminate the need for traditional financial institutions such as banks and lenders.

To date, Aave has secured over $20 billion in assets, an impressive milestone that reflects the confidence it has earned in the DeFi space. This success catapulted Aave to the forefront of the DeFi movement, generating far more revenue than any other protocol over the past year. And things could get even better for Aave’s token holders.

There is the introduction of a “fee exchanger” in the works, which would distribute a portion of the protocol’s revenue to Aave token holders. This could provide additional value to investors and increase the attractiveness of owning Aave tokens in the long term.

2. Ethereum: A sleeper blue chip with a big upside

Ethereum might not seem like a surprise inclusion on this list, but its performance over the past year has lagged behind some of its peers. Despite this, Ethereum remains the most liquid, active and used blockchain in the entire cryptocurrency space. A few tailwinds on the horizon could provide a significant boost to its price and long-term value.

In the short term, Ethereum will benefit from the same DeFi revival that could lift Aave. More than half of all DeFi activity takes place on the Ethereum blockchain. This means that if there is an increase in DeFi activity, Ethereum will naturally be one of the biggest beneficiaries.

But it’s not just DeFi that could drive Ethereum’s growth. Ethereum has some long-term catalysts that could push the price higher. One is the tokenization of real-world assets. Whether it’s real estate, art, or even company stock, tokenization has the potential to move trillions of dollars worth of assets onto the blockchain. Ethereum’s established network and smart contract capabilities make it the ideal platform for this transformation.

In addition, Ethereum’s history of successful upgrades and its well-defined roadmap for improving scalability make it well-positioned for future growth. Although its price has faced recent challenges, long-term investors may see this as a prime opportunity to invest in one of cryptocurrency’s blue-chip assets before the next wave of adoption accelerates.

3. Bitcoin: The Best Safe Haven Asset

It may not win any points for originality, but Bitcoin remains a top choice for investors looking for long-term growth. In fact, Bitcoin’s path forward is perhaps the clearest of any cryptocurrency. Its established position as the original and most valuable cryptocurrency gives it a significant advantage as it continues to evolve and grow.

There are several short-term factors that could fuel Bitcoin’s growth. One is the recent halving, which reduced Bitcoin’s inflation rate to below 1%. This supply shock usually leads to an increase in price, as was the case in previous halving cycles. Additionally, growing interest in spot Bitcoin exchange-traded funds (ETFs) has increased buying pressure, with institutional investors eager to gain exposure to Bitcoin.

Moreover, Bitcoin’s best performance has often come towards the end of the year, so it could have another strong finish this year.

Looking further ahead, however, long-term macroeconomic factors such as rising government debt, rising inflation and geopolitical uncertainty make Bitcoin such an attractive asset. As fiat currencies continue to lose purchasing power, more investors will seek to preserve wealth, and Bitcoin will likely rise to become the ultimate hedge against economic instability.

With the price of Bitcoin currently hovering around $60,000, it’s not hard to imagine it hitting six figures in the near future. Some experts even believe Bitcoin could hit seven figures one day as its role as a safe-haven asset becomes more prominent. With its limited supply of 21 million coins, Bitcoin is positioned to continue its historic run for years to come.