For the first six months of the year, Bitcoin (BTC -2.32%) was the standout performer in the crypto market. Bitcoin is up more than 80% for the year, now accounting for a staggering 50% of the capitalization of the entire crypto market. But there's more to crypto than just Bitcoin.
Right now, I have two growth cryptocurrencies on my radar for July: Solana (SOL -5.64%) and Render Token (RNDR -6.82%). Due to their superior growth prospects, both have the potential to soar much higher than Bitcoin in the second half of 2023. Let's take a closer look.
Solana
Solana is a top Layer-1 blockchain once known as a potential "Ethereum-killer." The problem is that Solana is still trying to recover from the meltdown of crypto exchange FTX last year. Due to its extensive links with the former chief executive officer of the exchange, Sam Bankman-Fried, Solana was arguably the crypto hit hardest by the FTX collapse.
On top of that, in early June, the U.S. Securities and Exchange Commission (SEC) named Solana as an "unregistered security" in lawsuits filed against cryptocurrency exchanges Coinbase Global (COIN 5.68%) and Binance (BNB -2.68%). So let's be clear: Solana is hardly a safe investment, and you have to be willing to take on quite a bit of risk.
That said, Solana has performed significantly better than expected this year. Despite so many regulatory issues swirling around it, Solana has almost doubled year. And at less than $20, it is still well below where it was trading when the FTX collapse occurred. As Solana's core metrics, such as those related to non-fungible tokens (NFTs), return to pre-FTX levels, I fully expect Solana to regain its price level from November 2022.
As a sign of better things yet to come, Solana recently surpassed Ethereum in terms of 24-hour NFT sales volume for the first time in its history. But that's just the start of the Solana comeback. In mid-April, Solana introduced its $1,000 Saga "crypto phone." This mobile phone launch is the next key step in the company's mobile crypto strategy, which has been under way for over a year.
From my perspective, the launch of a new hardware product this year is a potentially huge growth catalyst for Solana and one big reason I'm bullish on the company's long-term future prospects. According to Solana, the new mobile crypto strategy could result in the onboarding of many new blockchain users around the globe.
Render Token
Render is the crypto token of the Render Network, a distributed graphics processing unit (GPU) rendering network built using blockchain technology. In layperson's terms, the Render Network is where you go when you need more computing power for "rendering" (i.e., creating) hyper-realistic digital worlds. This is important for video games, metaverse worlds, and just about any form of high-end entertainment content. As such, Render has the support of some top names in Hollywood, including renowned film director J.J. Abrams.
From my perspective, Render is a "pick-and-shovel play" for the digital gold rush. Instead of trying to determine which metaverse world or video game will be the next big hit, you're investing in a network powering the creation of all forms of digital entertainment. In short, Render is providing picks and shovels to digital creators. If you've ever created a brief video on your computer and then waited a seemingly interminable amount of time for it to render, you can appreciate the problem Render is trying to solve.
Image source: Getty Images.
Year to date, Render Token is up almost 400%. And there could be plenty more growth ahead since the need for raw computing power is not going away anytime soon. Consider, for example, the impact new generative artificial intelligence (AI) technology has already had on creativity. With just a single text prompt, it's now possible to create ultra-realistic photos and videos. As another example, take Apple's (AAPL -0.35%) recent launch of a $3,000 mixed-reality headset. Developers will need to create 3D, immersive experiences for this headset, right?
But can they outperform Bitcoin?
In the first six months of 2023, only a handful of top cryptocurrencies with market capitalizations above $500 million outperformed Bitcoin. Both Solana and Render were in that group. The big question, of course, is whether they can continue to outperform Bitcoin over the second half of 2023. There is, for example, still quite a bit of regulatory risk swirling around Solana.
So if you're risk-averse or skeptical that the crypto market can rally much higher this year, you might be better off just sticking to Bitcoin. But if you have a big risk appetite and are looking for huge potential growth opportunities in the crypto market, both Solana and Render could be worth a closer look.
