These 2 Cryptocurrencies Have Better Outlooks Than Solana or Ethereum. Should You Buy Them?
Written by Alex Carchidi for The Motley Fool -> Ethereum and Solana don't offer holders much in the way of direct financial returns. However, Zcash and Hyperliquid do, which is a big part of the reason why their outlooks are better. When you own a stock and the business behind
Ethereum and Solana don't offer holders much in the way of direct financial returns.
However, Zcash and Hyperliquid do, which is a big part of the reason why their outlooks are better.
When you own a stock and the business behind your shares makes money, you usually see some of it kicked back your way, whether as a direct transfer of money like with a dividend, a buyback of shares that lifts the price of what you still own, or a reinvestment that increases the value of the company on a longer timetable.
But when you hold a cryptocurrency like Solana or Ethereum , the relationship is almost always one-way, as there's rarely any mechanism by which the network's activity or on-chain value gets translated into price appreciation or a payout of any kind. That also makes it hard to be enthusiastic about their development roadmaps as a holder, since the reinvestment into platform technology offers no clear way to reward you.
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Contrary to that, the common dynamic is that two smaller cryptos are building something closer to the corporate playbook. There's Hyperliquid (CRYPTO: HYPE) , which routes nearly all of its trading revenue into open-market buybacks of its own token, and Zcash (CRYPTO: ZEC) , which hands a fifth of every newly issued coin to the developers in its ecosystem.
As an investor, that makes the outlooks for those two coins a lot easier to believe in -- but should you buy either of them?
Hyperliquid runs a decentralized crypto exchange for a type of financial derivative called perpetual futures. It automatically captures 99% of the trading fees paid by users of its exchange and uses the proceeds to buy its native token, Hype, on the open market, removing those tokens from circulation, just like a stock buyback.
