best altcoins for march 2023

Stop! And listen up! Each month sees new opportunities in the crypto space. I found 4 projects or altcoins that are worth looking into for this month. They have been in the spotlights recently, or I expect them to those spotlights this month.

So, without further ado, let’s dive into these altcoins. 

1) Polygon (MATIC)

Polygon just can’t stop making headlines. It appears that they keep doing the right things.  I know, it’s unreal. Cody and I covered Polygon many times during the last few weeks, or is it months, by now? Check out some recent videos (1 and 2). So, why is Polygon featured this time? It’s actually quite big news. On March 27th, Polygon will release their zkEVM mainnet. ZK is zero knowledge technology. 

With this, you can prove something, without revealing important information. EVM is the Ethereum Virtual Machine, and it executes all transactions. You can see it as the main computer that runs the Ethereum network. Let me tell you why this is such big news:

  • Low costs: It lowers the total costs for the end user. On-chain data see a 90% fee reduction.
  • High performance: Transactions have a faster completion, due to Zero Knowledge technology.
  • EVM equivalence: There’s no need to change code. Instead of rewriting all code, devs can improve code.
  • Security: Polygon profits from Ethereum’s security as a layer 2. ZK proofs validates transactions and keep your funds safe. You can’t change or corrupt stored information.

So, you can use all the tools, apps, and code from Ethereum, but with a higher throughput and lower fees. You can now deposit your Ethereum assets, but transact them off-chain. The transactions go into batches with ZK proof. This reduces costs and increases throughput. It also validates all the transactions. As a result, the zkEVM operators can’t steal your funds.

This should explain why I added Polygon to this altcoins list. Are you, just us at AB, a Polygon fan and user? This brings us to my second pick of altcoins, Frax.

2) Frax (FRAX)

Frax is a stablecoin by Frax Finance. It’s also the first fractional stablecoin in the world. In other words, it’s partially backed by a collateral of digital assets. On the other hand, it also uses a mathematical cryptographic algorithm. So, it combines two popular ways to back up a stablecoin.

But Frax Finance has more to offer. They have two more stablecoins. For example:

  1. The Frax Price Index (FPI) stablecoin: It’s pegged to a basket of consumer goods. This separates it from any nation state denominated money or fiat money.
  2. FraxEther (frxETH): Which pegs to Ethereum. It can replace wETH in smart contracts.

Furthermore, Frax Finance also offers:

  • FraxSwap: A native AMM.
  • Fraxlend: A permissionless lending market.
  • Fraxferry: This transfers natively issued Frax Protocol tokens across many blockchains. In other words, this is a bridge.
  • Frax Share token (FXS): The governance token of Frax.

So, as you can see, plenty of things are going on here. However, what caught my attention is something else. Frax Finance is about to drop the algorithmic part of the FRAX stablecoin. Instead, they want to go for full collateral backing. One user proposed this on the 18th of February and on the 23rd of February the voting closed. 98.08% voted for this proposal. Now, within the whole BUSD situation, FRAX might start to play a role.

Currently, it’s still a small player, but keep your eyes out on this stablecoin and Frax Finance. The protocol has solid fundamentals and tokenomics. Which brings us to my third altcoins pick for this month. Stacks!

3) Stacks (STX)

Stacks is a layer 2, just like Polygon. However, it’s a layer 2 for Bitcoin. Shortly after BTC launched its NFT collection, the Ordinals, the STX token started to take off. Now let the Ordinals be a part of Stacks. So, no surprise there. Over the last 30 days, it saw a 236.5% price increase. Currently, it’s only down for 20% over the last year. That’s a lot better than most cryptocurrencies.

Now, Stacks is different! So, let’s have a look at that, for example:

  • It runs it own nodes.
  • Stacks has its own network.
  • The miners are Stacks miners.
  • They have STX, their own token.

As a result, Stacks doesn’t peg to on-chain BTC. However, other Bitcoin layer 2 chains, do. For instance, Rootstock. So, Stacks uses Bitcoin as a medium of storage. All transactions on Stacks are recorded on Bitcoin.

Besides Ordinals, Stacks also has the Bitcoin naming service. Especially for the Ordinals, you need a specific wallet. If the wallet doesn’t recognize the Ordinals, it may send them away. Here are 3 good wallets:

  1. Ordinals Wallet: A new wallet specifically made for the Ordinals. Its release was only on the 16th of February. You can hold, store, and view the NFTs inside the app.
  2. Xverse Wallet: They updated their wallet just before the Ordinals launch.
  3. Hiro Wallet: They support Stacks-based NFTs and the Ordinals.

Other big news is their Stacks Blockchain Release on 20th March. This will make the connection between Stacks and Bitcoin even stronger. This brings us to my last altcoins pick, Filecoin.

4) Filecoin (FIL)

As the name implies, Filecoin offers decentralized storage. You can store your files, or you can store files. When you store files, you receive rewards for doing so in the native FIL token. Before you can receive FIL, you need to prove that you stored the files correctly. See our recent update on Filecoin.

When you want to store your files, you can use parameters to find the best provider for your needs. For example, you can look at cost, redundancy, and speed. So, Filecoin uses an open market if you would like to provide storage. This can be somebody with spare disk space. On the other hand, you can also set up a dedicated system, specific to Filecoin.

However, their big news is their Filecoin EVM or FEVM launch. They scheduled this for 14th March, so in less than two weeks from now. This brings smart contracts and programmability to Filecoin.

This unlocks a whole new series of possibilities and features. For example:

  • Data DAOs: A transparent decision-making process. All proposals and voting happen on-chain.
  • Perpetual storage.
  • Financial services for miners: Liquid staking or collateral lending.

This may see Filecoin taking the spotlight. Their roadmap looks promising and goes well into the remainder of 2023. Over the last 14 days, the price increased by 36.5%. There seems to be room for more upwards movement.

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