Bitcoin (BTC-USD) has surged by 73% for year-to-date 2023 and the big rally might signal an end to the crypto winter and the beginning of the search to find the best cryptos to buy.
Standard Chartered has similar views and expects Bitcoin to touch $100,000 by the end of 2024.
If this holds true, the cryptocurrency could more than triple in the next 18 months. It’s therefore a good time to look at some cryptos to buy for multibagger returns.
There are several reasons to be bullish on Bitcoin and the crypto space. First, as Standard Chartered mentions, the collapse of Silicon Valley Bank has strengthened the case for decentralized digital assets.
Further, with the possibility of a recession, the fed is likely to pause on rake hike. This will be negative for the dollar and positive news for all risky asset classes.
Bitcoin is also due for a halving in 2024. Going by past instances, a major rally follows a halving event for cryptocurrencies. With these positive factors, let’s talk about three cryptos to buy that can skyrocket in 2023.
This might seem like a tall claim, but I believe that Ethereum (ETH-USD) will start outperforming Bitcoin. If the latter touches $50,000 to $60,000 by the end of the year, Ethereum can deliver 5x returns.
The first reason to be positive is the view that the Ethereum merge factor is still to be discounted in the price. In the last bull market, Ethereum touched highs of $4,900.
Assuming that Bitcoin trades near its highs, there is a strong case for Ethereum trading well above previous highs.
Another reason to be bullish last year, Vitalik Buterin stated that Ethereum development was only 55% complete after the merge. Bitcoin is “80% complete.” With sharding due, the number of transactions per second will surge. This is a big catalyst for Ethereum trending higher.
Of course, Ethereum is a blue-chip crypto along with Bitcoin. In my view, it’s a must hold for all crypto investors.
When I talked about Ethereum, I mentioned sharding is due in terms of the roadmap. In simple words, sharding is a process where transactions combine into smaller groups and divided among miners for parallel verification. This boosts transaction speed.
While Ethereum is working towards the concept of sharding, Zilliqa (ZIL-USD) is the world’s first coin that works on a sharding based concept.
Clearly, ZIL coin has an advantage over Bitcoin and Ethereum when it comes to transaction speed. Additionally, the transaction cost is significantly lower as compared to the bigger networks.
It’s worth noting that Zilliqa launched metaverse-as-a-service in March 2022. On announcement, ZIL quadrupled. However, the bear market resulted in the coin trending lower.
With another potential bull market, ZIL coin will be positioned to deliver multibagger returns. An increase in the number of dApps on the platform will also boost the demand for ZIL coin.
Polygon (MATIC-USD) is another name among the best cryptos for multibagger returns potential. In the last bull market, MATIC had touched highs of $2.9. From current levels of $1, a strong rally is likely if the sentiments remain positive for cryptocurrencies.
It’s worth noting here that in February 2022, Polygon raised $450 million from Sequoia Capital and few other VC funds. This provided the project with ample flexibility for development and places Polygon as a clear leader among Layer-2 or side-chain projects.
In 2021 and early 2022, Polygon also spend $1 billion to acquire firms to broaden its offering. Amidst all this news, the bear market depressed sentiments for MATIC. However, a renewed bull market would be a catalyst for another take-off.
In terms of specific catalysts, as more projects migrate to Polygon network, the outlook for MATIC coin is likely to turn bullish. Reports also indicate that Polygon defied crypto winter with a spike in NFT volumes.
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.