Cryptocurrencies seem to be emerging from an extended winter. The good thing about bear markets is that it flushes out the excesses in the system. The same holds true for cryptocurrencies. Dozens of projects went bust during the crypto crash. As the markets recover, investors will focus on the next big project(s) for multi-bagger returns. The best place to look for such projects is among penny cryptos.
Within a cryptocurrency portfolio, I would allocate 50% of funds toward Bitcoin (BTC-USD) and Ethereum (ETH-USD). I would allocate the remaining to promising projects that can enter the top-20 ranking in the next few years. The focus of this column is on penny cryptos that have a strong use case and a seemingly reliable team. These are potentially millionaire-making penny cryptos to buy. Let’s discuss the reasons that make these cryptocurrency projects attractive.
Zilliqa (ZIL-USD) is my top pick among penny cryptos to buy. The cryptocurrency touched highs of 25 cents in May 2021. From here, I wouldn’t be surprised if these highs are comfortably breached within the next five years. As an overview, Zilliqa was developed in 2017 with sharding being touted as a game changer. In this concept, transactions are subdivided among miners for parallel verification. This has a positive impact on transaction speed.
At the same time, the transaction cost is significantly lower as compared to Bitcoin or Ethereum. Just to put things into perspective, ZIL fees are 227 times lower than Ethereum in the case of native token transfer. It’s worth noting that Zilliqa launched metaverse-as-a-service in March 2022. This translated into a big rally in ZIL. However, the rally fizzled out due to broad market conditions. With a bright outlook for the metaverse, Zilliqa seems well-positioned to benefit.
Without a doubt, Dogecoin (DOGE-USD) was among the most talked about cryptos in the last bull market. At eight cents, the coin is almost 90% lower than its all-time highs. If the broader crypto markets perform, I believe that Dogecoin is poised for multi-bagger returns.
There are two major reasons to be bullish on Dogecoin. First, cryptocurrency has a strong community. Currently, 4.5 million unique addresses hold the asset in the network. In a scenario of wider cryptocurrency adoption, Dogecoin makes a strong case for acceptance as a payment method. Purely based on wider reach. Furthermore, Dogecoin has the backing of Elon Musk. It’s very likely that Dogecoin will be among the payment methods accepted on Twitter in the coming quarters. Dogecoin is already in use for buying selected Tesla (NASDAQ:TSLA) merchandise. I remain bullish on the wider adoption of Dogecoin as a payment method considering the attractive transaction cost.
Panther Protocol (ZKP)
Panther Protocol (ZKP-USD) is another interesting project that’s likely to skyrocket in the coming years. With the recovery in Bitcoin, ZKP has surged by 130% in the last 30 days. I expect the rally from oversold levels to sustain if Bitcoin continues a recovery path.
As an overview, Panther is a private scalable blockchain protocol for Web3 and DeFi applications. The project executes privacy-preserving swaps between digital assets across blockchains. With increasing data breaches, Panther Protocol is important and is likely to gain business traction in the coming years.
The current year is significant in the sense that the project aims at the implementation of Panther DAO. This will imply complete decentralization. From a price action perspective, more than 40 million ZKP tokens are staked on Ethereum. Another 35 million have been staked on Polygon. With 30.5% of tokens staked, there is a strong case for a sharp move on the upside as the demand for ZKP increases.
Nervos Network (CKB)
I was bullish on Nervos Network (CKB-USD) before the bear market. And I still maintain a positive outlook on the project. CKB has corrected by 88% from the highs of 2021 and I believe that the coin is poised to breach those highs within the next five years.
The Nervos Network project defines itself as an open-source public blockchain ecosystem and collection of protocols. The idea is to create a universal ‘internet-like’ public network. In simple words, Nervos is a Nervos Network is a proof-of-work-based multilayer network and smart contract platform. What’s unique about Nervos is the access to any blockchain and any asset without the need for multiple wallets.
From the perspective of token demand, the following point is worth noting. CKB allows projects to rent space on the Nervos blockchain. As more projects use the platform, an increasing number of CKB coins will be locked. This will translate into a meaningful upside for CKB.
Shiba Inu (SHIB)
Shiba Inu (SHIB-USD) started as a meme coin, but the project has been developing beyond just being a peer-to-peer transaction currency. SHIB has declined by 85% from all-time highs and I believe that the selling is overdone.
In terms of project development, Shibaswap is a decentralized exchange. The exchange currently has a total value locked of $25.4 million. This is likely to increase significantly in a bull market scenario for cryptocurrencies. Further, the Shiba Inu project has also made inroads into the metaverse space. Shiba is finalizing an agreement with a AAA Game Development Studio for the development of the metaverse for the Shiba community.
I also like the fact that the SHIB token is deflationary as compared to Dogecoin, which is inflationary. While I remain bullish on both tokens for the next five years, there is a strong possibility that SHIB outperforms DOGE.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.