If you are looking for cryptos that can make you rich, now might be the time to get in on the market.
Many cryptos have been rallying off the Federal Reserve’s decision to secure bank depositors, and interest rates are likely to reach a peak after another 25 basis point hike. Of course, this rally could be a nothing burger, as there is no guarantee that it will continue for any extended period of time. But with many projects currently trading at attractive levels, the entry points on many tokens remain compelling.
I would also like to note that investing in high-risk cryptos could yield millionaire-making returns quickly, but I would not recommend this strategy for most investors. The sector continues to be plagued by scams, and as with any get-rich-quick scheme, things can turn out poorly for those who don’t do their research.
Thus, I will discuss solid projects with high return potential over the next five years. Here are three such projects I think fit in this bucket.
Polygon (MATIC-USD) is a layer-2 project that I believe is leading the pack in terms of Ethereum’s (ETH-USD) scalability solutions. Without going too much into buzzwords, “layer 2” simply defines a network that combines transactions together, processing them on the main “layer-1” blockchain.
These layer-2 networks reduce fees substantially, and improve the speed of transactions. Currently, Ethereum can only handle around 16 transactions per second, unlike many of its peers (that are much faster). Since Ethereum is the leading crypto ecosystem for smart contracts, layer-2 solutions provide a much-needed service to the network.
Now, many layer 2 solutions make Ethereum faster. So what makes Polygon special?
My argument for Polygon surrounds its zkEVM technology. This technology allows Ethereum developers to onboard their decentralized applications to the Polygon ecosystem natively. That means developers won’t have to write any new code to make their decentralized applications 100x faster than Ethereum and 90% cheaper, with much more security and reliability than existing scaling solutions.
It’s a tech pure play that I believe will have a much higher value a few years from now.
Render Network (RNDR-USD)
Render Network (RNDR-USD) is a project that provides decentralized GPU rendering. The computing power necessary to render 3D movies, videos, documentaries, images, games, or even AI models is increasing in correlation with the amount of detail these digital programs have. Thus, the need for better and faster GPUs is also increasing, especially for institutions that focus on making movies or documentaries. Rendering such movies often takes weeks, or even months.
What the Render Network does is rent this computing power from millions of people, and then resell all that computing power to companies who require rendering services. The network is quickly gaining popularity among graphics designers, video editors, and individuals who are interested in the digital art niche. However, as word of mouth spreads, I believe the Render Network will soon be used by big institutions too. In fact, it already has partnerships with some media companies through OTOY.
Render is still a new concept, but I believe this crypto project is a surefire bet due to the amount of real-world utility offered here.
Filecoin (FIL-USD) is similar to the Render Network, but instead of distributing GPU rendering power, it focuses on distributing cloud storage. Much like cloud computing, cloud storage is also a burgeoning market. This market is forecast to grow from $83.41 billion last year to $376.37 billion by 2029 at a CAGR of 24.0%. I believe that by 2029, at least 5-10% of that market could be blockchain-based.
Filecoin’s peak market capitalization was at $12.3 billion; however, after the market’s recent decline, this project is currently trading around a $2.3 billion valuation. Thus, there is tremendous upside potential here, making FIL one of the top cryptos to keep on the radar right now.
On the date of publication, Omor Ibne Ehsan did not have (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.