In this article, we discuss 10 cryptocurrencies trending on Reddit in March. If you want to skip our detailed analysis of these currencies, go directly to 5 Cryptocurrencies Trending on Reddit in March.
As technology permeates every aspect of human lives, it has also begun to slowly transform how people spend money. Investment decisions are changing. Institutions that once scoffed at the idea of digital currencies are now trading crypto and offering it to clients as alternatives to gold as a hedge against inflation. According to estimates by Crypto.com, a cryptocurrency exchange app based in Singapore, over a billion people will invest in some form of crypto by the end of 2022. In 2021, only a third of this number had investments in cryptocurrencies.
Crypto Regulation Looms Large Over 2022
As cryptocurrencies become more popular, governments around the world have been forced to take action to regulate their trade. Some, like China, have banned them altogether, while others, like India, are on track to launch a national cryptocurrency very soon. Nations like South Korea have taxed crypto transactions already, with citizens trading crypto in excess of $2,300 required to pay a 20% tax on the trade. This tax is payable only in physical currencies. In the US as well, lawmakers have begun to discuss crypto-related rules.
As inflation and an interest rate hike batter the growth market, crypto assets have slid in value as well. Bitcoin, the most popular coin, has shed close to half of its value since a high in November. Other crypto stocks like Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL) are also witnessing heavy volumes. However, the bear market has brought about the opportunity to pick up coins at a bargain price since it seems that blockchain is the future of finance.
Our Methodology
These were picked from a careful assessment of the cryptoverse on the internet platform Reddit. The details of each cryptocurrency are mentioned alongside a discussion around top companies working in the sector to provide readers with some context for their investment decisions.
Data from around 900 elite hedge funds tracked by Insider Monkey at the end of December 2021 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by Executium on Unsplash
Cryptocurrencies Trending on Reddit in March
10. Monero
Monero is a cryptocurrency launched in 2014. The coin has an emphasis on security and privacy. It achieves this by ring signatures, a type of cryptographic technique on the blockchain that creates multiple signatures for a transaction that all appear valid, masking the actual identity of the user involved in making that transaction. Although this has led to concerns around use of the coin by criminals, it is also equally important as a tool for those fighting oppression.
Coins like Monero are gaining mainstream recognition through the efforts of businesses like Alphabet Inc. (NASDAQ:GOOG), the parent company of Google. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.9 million shares worth more than $8.5 billion.
Just like Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL), Alphabet Inc. (NASDAQ:GOOG) is one of the crypto stocks that growth investors have been flocking to.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet Inc. (NASDAQ:GOOG) among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet Inc. (NASDAQ:GOOG) as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
9. Stellar
Stellar is a cryptocurrency that provides payments solutions to large financial institutions. These institutions, like banks and investment firms, typically handle a lot of money and usually have to go through a lot of intermediaries for money transfers. This process takes a lot of time and costs a lot of money. Through the use of Stellar, which can also be used to make cross-border transactions, these institutions can cut waiting times and transfer charges drastically.
The popularity of coins like Stellar has increased dramatically with the help of established firms like CME Group Inc. (NASDAQ:CME), the Illinois-based derivatives exchange that accepts crypto trades on the platform. At the end of the fourth quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in CME Group Inc. (NASDAQ:CME), compared to 64 the preceding quarter worth $2.6 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and CME Group Inc. (NASDAQ:CME) was one of them. Here is what the fund said:
“CME Group Inc. (NASDAQ:CME) has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME Group Inc. (NASDAQ:CME) is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
8. Dogecoin
Dogecoin is one of the most controversial names in the crypto world. The coin was launched in 2013 as an elaborate joke but has since gained prominence as celebrities endorse it and use it to promote crypto literacy. The coin, whose symbol is a Shiba Inu dog, has inspired other “meme” coins like it that have also climbed amid interest from retail investors on Reddit. Even as interest in altcoins increases, Dogecoin remains one of the most popular coins on Reddit.
Dogecoin is slowly transforming into a real-life commodity, especially as people like Elon Musk, the owner of Tesla, Inc. (NASDAQ:TSLA), support it on social media. At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), up from 60 in the previous quarter worth $10.6 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. Tesla, Inc. (NASDAQ:TSLA) stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
7. Polkadot
Polkadot is a cryptocurrency network that acts as a bridge between different blockchains. The main advantage of using the Polkadot network as compared to other blockchains is that developers and users can take advantage of the “relay chain” of the network to create new blockchains. These blockchains are secured by the security system of the Polkadot network, protecting smaller chains from attack, a feature that is rare in the crypto universe.
Polkadot and other cryptocurrencies like it are becoming more visible to investors as firms like Mastercard Incorporated (NYSE:MA), the New York-based payments processing firm, double down on their crypto bets. Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE:MA), with 5.8 million shares worth more than $2.1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard Incorporated (NYSE:MA) make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
6. Cardano
Cardano is a cryptocurrency founded by a team of scientists and engineers that have over 120 papers published on blockchain technology in many reputable journals. This sets Cardano apart from other coins in the crypto world since extensive data informs every aspect of its development. Even though Cardano is based on the Ethereum code, the network has already transitioned to the proof-of-work model, beating the parent coin to the punch.
Coins like Cardano are being mined using the powerful hardware developed by NVIDIA Corporation (NASDAQ:NVDA), the microchip maker from California. At the end of the fourth quarter of 2021, 110 hedge funds in the database of Insider Monkey held stakes worth $10.4 billion in NVIDIA Corporation (NASDAQ:NVDA), up from 83 in the previous quarter worth $10 billion.
In addition to Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) is one of the crypto stocks that hedge funds are bullish on.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA Corporation (NASDAQ:NVDA) and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA Corporation (NASDAQ:NVDA) reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA Corporation (NASDAQ:NVDA) to the portfolio.”
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Disclosure: None. 10 Cryptocurrencies Trending on Reddit in March is originally published on Insider Monkey.
