3 Top Proof-of-Stake Tokens to Buy Right Now

These three top proof of stake tokens are among the cryptocurrencies long-term investors may want to consider right now.

| More on:
crypto blockchain

Image source: Getty Images

Regardless of whether you are a cryptocurrency skeptic or a fan, there’s a lot to be said about the innovation right now that’s happening as a result of blockchain technology. Among the top trends I’ve been watching in this space is how blockchains validate and secure their networks. Thus, proof of stake tokens are a hot commodity right now.

Proof of stake (PoS), as opposed to proof of work, is a validation mechanism that doesn’t require as much complexity in validating blocks. Via staking tokens, the network uses much less power consumption to secure its network. That’s better for the environment, and for the growth of the crypto world.

Here are three of the top proof-of-stake tokens I’ve got my eye on right now.

Top proof-of-stake tokens: Cardano

Created by one of Ethereum’s co-founders, Cardano (CRYPTO:ADA) was engineered to excel in areas where other cryptos fall short. For instance, Cardano uses a PoS protocol that makes it more efficient and faster than Bitcoin

Currently, it can process approximately 250 transactions per second. Once it releases its Hydra upgrade, this rate can reportedly go up to one million transactions per second. That would make Cardano among the fastest networks in the world.

Additionally, Cardano has picked up steam of late for the network’s attempt to become carbon-negative. Via tree planting, this blockchain network aims to actually help the planet. For those using the environmental argument against crypto, Cardano is a blockchain to look at.

Polkadot

Another top PoS token is Polkadot (CRYPTO:DOT). This scaling solution allows for parachains (parallel blockchains) to exist aside leading networks like Ethereum. Accordingly, for those concerned about speed and cost along the Ethereum blockchain, Polkadot offers an intriguing solution.

Indeed, it’s not surprising to see growth in the Polkadot ecosystem surge. The number of developers working on the Polkadot network has exploded this past year. Experts have looked at the data and seen the number of lines of code written on the Polkadot network dwarf all the previous years combined. Accordingly, as the developer community continues to grow, investors stand to benefit from an increasing value of this parachain platform’s native token, DOT.

Avalanche 

Perhaps one of the most intriguing Ethereum competitors that has picked up steam of late is Avalanche (CRYPTO:AVAX).

This is one of the leading PoS tokens with smart contract capabilities. Like the other networks on this list, Avalanche is growing fast. Accordingly, it’s this network’s growth rate that has many investors excited.

Currently, Avalanche provides users and developers with a network that can handle approximately 4,500 transactions per second. Compared to Ethereum and other more bloated networks, that’s lightning fast.

Additionally, Avalanche’s structure, as a combination of three blockchains working together, provides a compelling scaling argument. For those looking for PoS tokens that can outperform in 2022, Avalanche is one to keep an eye on right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns Ethereum. The Motley Fool owns and recommends Bitcoin and Ethereum.

More on Cryptocurrency

Bitcoin
Cryptocurrency

Bitcoin Tanks 38% in 2022: Buy It Cheap?

Bitcoin has fallen considerably this year, and it might be worth investing in at a discount for stellar returns.

Read more »

Person Hands Opening Mailbox To Remove Newspaper
Cryptocurrency

XRP vs. SEC Lawsuit: Some Interesting Developments

The summary judgment in the ongoing legal battle in the cryptocurrency market might come in 2023, not this year.

Read more »

crypto blockchain
Cryptocurrency

Is XRP the Large-Cap Crytpocurrency to Own Right Now?

Let's take a deeper look at whether XRP (CRYPTO:XRP) is a digital token worth investing in at this particular juncture…

Read more »

thinking
Cryptocurrency

Can the Ethereum Merge Take This Token to New All-Time Highs?

Here's a dive into what the upcoming Ethereum merge is and why investors may want to pay attention to this…

Read more »

crypto, chart, stocks
Cryptocurrency

2 Top Crytos to Buy Right Now

Here are two top cryptos investors may want to consider right now, given the sharp selloff we've seen in this…

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Cryptocurrency

2 Cryptocurrency Stocks Investors Can Buy Right Now

Cryptocurrency stocks such as Coinbase and Hut 8 Mining are trading at attractive valuations, making them attractive to long-term investors.

Read more »

cryptocurrency, crypto, blockchain
Cryptocurrency

2 Top Cryptocurrencies That Can Be Part of Your Portfolio in 2022

Cryptocurrencies such as Polygon and Solana are trading significantly lower compared to all-time highs but remain a top bet right…

Read more »

Big Bitcoin logo.
Cryptocurrency

Is Bitcoin the Store of Value Everyone Thought?

Is Bitcoin a true store of value or just another high-risk, high-upside asset class that's likely to remain volatile in…

Read more »