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Despite the current sell-off, a number of cryptos are here to stay and poised to reach new highs. A digital economic system is rapidly evolving in spite of regulatory risks from governments worldwide, including China’s recent cryptocurrency ban.
Strategic alliances will play a key role as cryptos try to convince the world that they’re big and powerful enough for mainstream users. Prominent crypto projects are busy forging partnerships inside and outside the blockchain industry.
These collaborations help cryptos acquire new customers in different markets. They might also lead to further innovation, allowing blockchain projects to stand out in the already-congested crypto space. Additionally, partners share resources and swap their know-how, helping both parties gain knowledge about each others’ areas of expertise.
With that said, here are seven cryptos to buy that are currently leading the way in strategic partnerships.
- Avalanche (CCC:AVAX-USD)
- Cartesi (CCC:CTSI-USD)
- Chainlink (CCC:LINK-USD)
- LCX Token (CCC:LCX-USD)
- Stellar Lumens (CCC:XLM-USD)
- Utrust (CCC:UTK-USD)
- VeChain (CCC:VET-USD)
Cryptos: Avalanche (AVAX)
Avalanche is an open-source network for decentralized finance applications (DeFi). The network supports financial assets, trading and other services on a highly scalable platform.
Avalanche claims to host “the first decentralized smart contract platforms built for the scale of global finance with near-instant transaction finality.” It was created in 2020 by Ava Labs, a company led by Cornell University professor Emin Gün Sirer.
Avalanche uses proof-of-stake (PoS) protocol to reward users with AVAX, its native coin. Its total supply is around 386 million tokens with over 172 million in circulation. While the coin itself is still relatively unknown, its platform stands out because of its partnerships.
For example, Tether (CCC:USDT-USD) will soon launch its coin on the Avalanche blockchain. Tether’s CTO, Paolo Ardoino, believes the move will offer traders a faster and cheaper way to transfer the stablecoin.
This isn’t Avalanche’s first partnership. Frontier (CCC:FRONT-USD) worked with the platform to support AVAX staking and non-fungible tokens (NFTs). Their partnership is meant to make the platform’s DeFi apps more accessible.
Similarly, Velox is working with Avalanche to add algorithmic trading to decentralized exchanges. Meanwhile, a collaboration with Union aims to improve the safety and capital efficiency of the platform’s products.
AVAX’s price is currently around $11.49. Year-to-date (YTD), it is up more than 250% despite a 33% decline over the past 30 days. The current dip in price may be a good opportunity for long-term investors to add this young altcoin to their portfolios.
Cartesi is a network used to develop smart contracts. What sets it apart is that developers can use it with the mainstream software and Linux OS programs they already know. The network’s unique approach can make this aspect of blockchain more accessible.
According to CoinMarketCap.com, the platform “enables million-fold computational scalability, data availability of large files and low transaction costs.” Its altcoin, CTSI, is currently circulating 373 million coins with a maximum supply of 1 billion. Cartesi has a current market cap of $166 million.
The Cartesi team has forged partnerships both inside and outside of the blockchain industry. Collaborations with Elrond (CCC:EGLD-USD) and Iota (CCC:MIOTA-USD) reflect continued efforts to push the boundaries of smart contract development.
CTSI is currently trading around 44 cents. The altcoin has gained over 900% YTD, despite having plunged more than 35% over the past 30 days.
Chainlink is a blockchain platform that uses an oracle network to incorporate off-chain data into smart contracts. Oracle networks are streams of data between the blockchain and real-world sources. Chainlink uses them to give smart contracts the essential information they need to operate advanced features.
The platform was co-founded in 2017 by Sergey Nazarov, who is deeply focused on smart contracts. LINK, its Ethereum (CCC:ETH-USD) token that powers the network, has a current market cap of $8.1 billion. This digital token incentivizes users to provide and use the off-chain data needed to operate smart contracts.
ChainLink has teamed up with more than 70 companies over the past few years. Its biggest publicity boost came in 2019 when it partnered with Google (NASDAQ:GOOG, NASDAQ:GOOGL). The platform’s other partnerships include several cryptocurrencies like Ethereum Classic (CCC:ETC-USD) and companies like Oracle (NYSE:ORCL).
LINK currently hovers around $18, up over 60% YTD. Long-term investors should consider adding LINK to their portfolios, as Chainlink’s mission implies tremendous potential for blockchain networks.
LCX Token (LCX)
The LCX Exchange is a regulated trading venue that supports several cryptos and related services. It wants to be a leader in blockchain banking and is known for its cryptocurrency trading desk, LCX Terminal.
LCX is well-positioned to be a retail exchange that can help other groups launch their digital assets. Institutional, merchant and consumer users can buy, sell, transfer and store their digital currencies in its blockchain ecosystem.
Out of 11 crypto-related licenses in Liechtenstein, LCX has been granted eight. LCX CEO Monty Metzger said, “The licenses make LCX a regulated crypto exchange, digital asset custody provider, price oracle provider, digital asset compliance provider, smart-contract creator and token-offering platform.”
Additionally, LCX is partnering with DigiByte (CCC:DGB-USD), another cryptocurrency. The collaboration will include a blockchain node and integrated wallet support.
LCX currently has a relatively small market cap at $14.2 million. The coin’s price is around 2.2 cents, up 37% YTD. It has gained over 130% over the past 12 months.
Cryptos: Stellar Lumens (XLM)
The Stellar network is an open blockchain-based payment protocol that uses the lumen token. The crypto is primarily used for cross-border transactions.
Jed McCaleb, co-founder of Ripple (CCC:XRP-USD), launched Stellar Lumens in 2015. Valued at more than $6 billion, XLM has become one of the top cryptos by market cap. It can convert any currency and trade it across numerous channels faster and cheaper than traditional methods. Due to its low-cost advantage, XLM fans believe the altcoin can disrupt the industry surrounding cross-border financial payments.
Stellar Lumens has a growing list of partnerships. For example, they recently announced an initiative that will give users convenient access to their digital wallet. The partnership will include Visa (NYSE:V), Tala and Circle and give users access to USD Coin (CCC:USDC-USD).
Stellar Lumens has also built partnerships with IBM (NYSE:IBM) and Deloitte, two of its most notable institutional supporters.
Creation of new Stellar Lumens stopped permanently in 2019, which is expected to elevate its price in the long run. XLM is currently priced around 27 cents, up over 100% YTD.
The Utrust platform allows e-commerce merchants to accept cryptocurrencies as payment. The network supports multiple digital currencies, including its native token, UTK. Utrust wants to be a reliable platform for crypto payments with fewer fees and faster transactions. Its current market cap is just shy of $100 million.
The platform’s token is based on the Ethereum blockchain. The altcoin has a current supply of 500 million UTK coins with 450 million in circulation.
Utrust protects both buyers and sellers from price volatility that plagues the crypto space. Until the buyer receives a purchased product, Utrust acts as a mediator to provide security for transactions. Its mobile wallet supports both on- and off-chain payments.
The platform has partnered with Pundi X, which specializes in blockchain-based point-of-sale devices, to build an offline crypto payment platform for physical retailers. It has also joined forces with Gambio, Germany’s largest e-commerce solution provider, to enter Europe’s largest economy. Finally, its partnership with UMT promises to make it easier for customers to make or accept cryptocurrency payments in the European market.
UTK currently trades around 22 cents, up more than 70% YTD. Its price has fallen since May, so investors with long-term horizons could use the dip as an opportunity to buy the altcoin.
Cryptos: VeChain (VET)
VeChain is an enterprise blockchain network that specializes in supply chain logistics. The cryptocurrency has gained popularity across various industries and recently reached a market cap of $5 billion.
VeChain uses a PoS protocol for its token. Users who want to track their supply chain operations successfully need to own VET-USD. Holding VET also generates passive income in VeChain’s secondary VeThor Token (CCC:VTHO-USD), which functions like a “gas token.”
VET aims to disrupt the supply chain logistics industry by making the process more efficient. And thanks to its strategic partnerships, VET stands out among supply chain and logistics-focused cryptocurrency.
Businesses in the healthcare, car manufacturing, consumer goods, insurance and logistics industries are partnering with VeChain. Some of its best-known partners include BMW (OTCMKTS:BMWYY) and PricewaterhouseCoopers.
VET is priced at about 8 cents. Despite the recent market sell-off, the crypto has gained 320% YTD. The altcoin has excellent potential in the long run because it offers feasible solutions to vital logistics problems, making it a worthwhile investment.
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On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.