Updated on March 30, 2023
A bear market spells doom for most cryptocurrency investors, with many asking: which crypto will survive a crash? Many indicators of the potential oncoming stock market crash have left investors jittery about how to brace for impact.
“Market crash” is colloquially used in finance to mean a speedy and significant decline. During a crash, investors lose tons of money as prices plummet, causing them to sell their assets en masse out of fear of losing even more money.
For cryptocurrency investors, the important question of the day is whether to sell now or hold onto their investment. Recent headlines about the inevitable and catastrophic drop in crypto might have spooked some investors and forced them to recon with the decision at hand. Investors lacking the nerve to weather the storm would doubtless opt to sell at the earliest convenience.
However, those willing to hold on to their investments might seem market savvy, but this is only true if the coins they’re holding on to still hold promise despite the market conditions.
Cryptocurrency bigshots such as Bitcoin (ticker: BTC), Binance Coin (ticker: BNB), Solana (ticker: SOL), Polkadot (ticker: DOT), Polygon (ticker: MATIC) and Tron (ticker: TRX) are all considered safe bets, especially since they have weathered similar storms before.
Here are some other cryptos likely to survive a crash;
Aave (ticker: AAVE)
This is a DeFi protocol for both lending and borrowing cryptocurrencies, providing a different route for enthusiasts to participate in the crypto market. Aava makes it possible for lenders to deposit crypto assets in liquidity pools and enables borrowers to use their coins as collateral to obtain a loan through this liquidity. This creates a constant cycle of demand and supply. Aave supports roughly 20 crypotcurrencies, which are available to people participating in lending and borrowing.
Decentraland (ticker: MANA)
This virtual world enables people to create and monetize their content; users can buy real estate, play games, etc. Tracts of land in Decentraland take the form of an ERC-721 token known as LAND. MANA refers to an ERC-20 utility token used to purchase land, avatars, games, and other resources.
With the ever-increasing interest in the Metaverse, as well as the trading of LAND, MANA has become a very profitable asset.
Avalanche (ticker: AVAX)
Similar to Solana, this is an Ethereum rival and aims to resolve the blockchain trilemma. It contains three interoperable blockchains: Exchange Chain, the Contract Chain, and the Platform Chain. With these blockchains, it’s a low-cost and scalable platform that can be used for building decentralized applications.
The AVAX token is a currency for transaction fees on the network and also as a deflationary measure. This ensures that there is consistent supply and demand for the token.
UniSwap (ticker: UNI)
This is an automated market maker and also a decentralized exchange for trading DeFi tokens. It enables automation of trading and solves liquidity problems that come with the DeFi space.
The token is democratically governed through UNI, allowing UNI holders to decide on the platform’s future. As one of the first decentralized exchanges, UniSwap has continued to evolve and offers more value and utility, which spells a bright future for the platform.
Stellar (ticker: XLM)
The purpose behind the creation of Stellar was to counteract the high fees associated with Bitcoin and Ethereum blockchains. The platform has a simple, decentralized, and high-speed payment protocol. Each transaction on Stellar costs roughly 0.00001 XLM and has a 3-second to 5-second processing time.
In 2019, IBM built a global payment system (World Wire) on the network to enable large financial institutions to submit and process transactions easily. With such heavy-weight partnerships under its belt and the unique features Stellar offers, it’s easy to see why this crypto will be around for years to come.
This is a decentralized public blockchain and crypto project. Although the company is based in Japan, it’s an open-source project with global distribution. A ‘proof-of-stake’ consensus protocol, Ouroboros, is used to build Cardano. ADA is the name of the currency.
One of the key project objectives is to create a more sustainable and user-friendly cryptocurrency than Bitcoin and Ethereum. The currency boasts of being the result of scientific philosophy and peer-review research.
With all the fear generated by news of a potential stock market crash, crypto investors would be wise to see whether their portfolio contains solid investments such as Aave, Avalanche, or Stellar, which are likely to weather any potential stock market crash.
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