September has historically been rough for crypto, with many major cryptocurrencies seeing their prices drop throughout the month in previous years. However, that's not always a bad thing for investors.
When prices are lower, it can be a smart buying opportunity. Not only does buying the dip allow you to invest in expensive cryptocurrencies at a fraction of the cost, but it can also set you up for more lucrative earnings if prices rebound.
While all cryptocurrencies are still speculative at the moment, there are two that could be poised for more significant growth: Ethereum (ETH +1.64%) and Solana (SOL +0.41%).
1. Ethereum
Ethereum has been a front-runner in the crypto space for years, but its latest update, The Merge, has been making headlines in recent months.
This update will move Ethereum from a proof-of-work (PoW) mining protocol to a proof-of-stake (PoS) system, which is one of the biggest milestones in crypto history. It will also make the network far more energy efficient, as it will require an estimated 99% less energy under PoS.
CRYPTO: ETH
Key Data Points
The downside to Ethereum is its sluggish speeds and high transaction costs. Unfortunately, The Merge will not solve those issues. However, it will set the stage for Ethereum's next update -- currently slated for either 2023 or 2024 -- which should make the blockchain faster and more cost-efficient.
These issues aside, Ethereum has long held the position of the second most popular cryptocurrency, with a market cap of around $209 billion. That alone gives it a significant advantage over many other networks, and The Merge is a strong step in the right direction for Ethereum.
2. Solana
Solana is similar to Ethereum in many ways. It's a smart contract platform that can host decentralized applications, such as non-fungible token (NFT) marketplaces. While it's significantly smaller than Ethereum (currently ranked as the ninth most popular crypto with a market cap of around $13 billion), it has a major advantage over its biggest competitor: speed.
At the moment, the Ethereum blockchain can only process around 13 transactions per second (TPS). Solana, however, is handling close to 3,000 TPS. According to developers, its maximum speed is around 65,000 TPS.
Many developers and users have grown frustrated with Ethereum's lack of speed and high costs, and thus have been flocking to Solana. Considering it will be an estimated one to two years before Ethereum's next update to address these issues, there is a lot of time for Solana to gain traction in this space.
CRYPTO: SOL
Key Data Points
There are, of course, downsides to consider with Solana, too. One of its most pressing problems right now is its network instability. In 2022 alone, Solana has experienced five major outages, some of them lasting several hours.
These outages have understandably shaken users' and investors' confidence, and they may have played a part in Solana's dramatic decline so far this year. However, all blockchains are subject to bugs and outages occasionally, and if Solana developers can find a way to keep the network more reliable, it could be a real force in the crypto world.
No cryptocurrency is perfect, but both Ethereum and Solana have unique advantages in the crypto market. While nobody knows for certain how they will perform over time, they could be on the verge of serious growth.
