This month it’s all about updates and potential developments.
- September will be the month of the long-awaited Ethereum merger. Pay attention to related cryptocurrencies like Polygon and Ethereum Classic, as well as the smart contract giant itself.
- Cosmos could see progress in its Rho update in the coming months.
- Helium is trying to shake off some tough months by talking about a possible move to Solana.
After nine months of falling or stagnating prices, investors continue to hope that the bear market for cryptocurrencies will soon take its course. Unfortunately, inflation is still high and a recession could be on the way. Also, last week, Fed Chairman Jerome Powell indicated that the central bank’s hawkish stance is likely to continue. The market has already taken a hit after his speech. But be prepared for further volatility around the next announcement of a potential rate hike from September 20-21.
Meanwhile, numerous cryptocurrency development actions are underway behind the scenes. Low pricing hasn’t stopped many of these companies from pursuing the transformative potential of blockchain. In fact, it’s always good to look for ongoing development and updates as it’s an indicator that a project may be able to survive in the long run.
Here are three projects to monitor in September.
1. Ethereum (ETH)
Given the size of Ethereum, it is difficult to consider it an altcoin. However, its shift from proof of work to proof of stake will dominate the cryptocurrency agenda. Not only is it the biggest crypto news this month, it’s arguably one of the biggest crypto events of the year. The long-awaited Merge will take place in two phases, the first of which will be on September 6 and the second will follow shortly thereafter.
As an investor, keep in mind that any technical hitches could dent confidence in the entire industry, not just Ethereum. There is also a lot of hype and speculation surrounding the merger, which could mean that we will see a near-term price drop for ETH as the merger launches. If you keep your eyes on the long term, you will be less affected by any immediate foaming.
Here are a couple of other cryptocurrencies to look at with direct connections to Ethereum:
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- Polygon (MATIC): You’d think the Ethereum upgrade would be bad for Tier 2 solutions like Polygon. After all, they exist to improve Ethereum’s performance, so if they improve, won’t they become redundant? It is unlikely. First, the union will not solve problems such as high gas tariffs or network congestion. Secondly, even as Ethereum gets faster and cheaper, layer 2 will still be able to further improve its performance.
- Classic Ethereum (ETC): Also dubbed the “original” Ethereum, Ethereum Classic formed after a disagreement split the community over five years ago. It will not pass to the betting test. This makes it attractive to many Ethereum miners whose equipment is about to become redundant.
2. Cosmos (ATOM)
Cosmos attracted a lot of attention in August after investment manager VanEck said he was bullish on long-term ATOM. That hype may have passed, but in September we’re watching and hoping for progress in its long-awaited Rho update. Originally slated for Q2 of this year, there’s no set date, but when that happens it will bring better governance and other features.
Cosmos is an interoperable cryptocurrency, which means it helps blockchains communicate with each other. This is a big deal for the industry and one of the many reasons VanEck is optimistic about its future. It is available from most of the top cryptocurrency exchanges.
3. Helium (HNT)
Helium has been having a hard time recently. The decentralized network that pays HNT to operators running its long-range wifi routers has been targeted for misrepresenting its partnerships. So people have raised questions about its usefulness, citing low monthly revenue figures.
Helium responded to the criticism, highlighting the various use cases of the project and defining the potential market share. CEO and founder Amir Haleem explained that the low media revenue figures are not representative of the total network revenue.
Fast forward to today, and Helium is considering moving to the Solana (SOL) network. The community will be able to vote on the proposal, which would simplify the blockchain architecture and make it more scalable, in mid-September. There is also a large “HeliumHouse” gathering in New York on September 20th.
There is still a lot of uncertainty in the cryptocurrency markets, and sadly, prices could drop further. Don’t jump in and buy the above cryptocurrencies in hopes of short-term gains. Instead, do your research and consider how you think they might work in the long run and how they might fit into your larger portfolio. As with any high-risk investment, you only spend money that you can afford to lose.
Cosmos and Helium are both interesting crypto projects with a lot to offer. However, all cryptocurrency investments come with risks and these are no different. Cosmos has a nasty habit of delaying updates – Rho’s is already overdue – and some critics say Helium’s business doesn’t need a blockchain at all. It is also important not to get too involved in the hype around Ethereum. The Merge is a big deal, but it’s just one step on a bigger journey. The next big move will actually be to reduce gas tariffs and improve scalability, and that upgrade isn’t expected until at least next year.