Well, the simplest and most efficient mechanism would be option 0:
v="abc"
The first mechanism involves four assignments.
The second mechanism is bizarre (and is definitely not readable). It (nominally) runs an empty command in two sub-shells (the two ` ` parts) and concatenates the outputs (an empty string) with the three constants. If the shell simply executes the back-tick commands without noting that they're empty (and it's not unreasonable that it won't notice; it is a weird thing to try — I don't recall seeing it done in my previous 30 years of shell scripting), this is definitely vastly slower.
So, given only options (1) and (2), use option (1), but in general, use option (0) shown above.
Why would you be building up the string piecemeal like that? What's missing from your example that makes the original code sensible but the reduced code shown less sensible.
v=""
x=$(...)
v="$v$x"
y=$(...)
v="$v$y"
z=$(...)
v="$v$z"
This would make more sense, especially if you use each of $x, $y and $z later, and/or use intermediate values of $v (perhaps in the commands represented by triple dots). The concatenation notation used will work with any Bourne-shell derivative; the alternative += shell will work with fewer shells, but is probably slightly more efficient (with the emphasis on 'slightly').