The continued rally in Bitcoin (BTC-USD) might finally signal the resumption of another bull market in cryptocurrencies. Without doubt, the blue-chip cryptocurrencies like Bitcoin and Ethereum (ETH-USD) will perform well. However, there are other speculative cryptos with millionaire making potential.
Once the bull market extends, these cryptocurrencies will be in the limelight.
It’s also worth noting that the possibility of recession is likely to force policymakers to pursue expansionary monetary policy. If there’s a lot of money in the financial system, speculation on different investments will go up. Cryptocurrencies that are hidden gems will skyrocket.
Like equities, I would recommend at least 50% to 60% fund allocation to blue-chip cryptocurrencies. We can allocate the remaining to speculative cryptos that have a potential to surprise.
I must also mention that speculative activity in certain projects might not necessarily imply that the project has no fundamentals. There are small-cap cryptocurrencies with a promising long-term outlook.
Let’s discuss three speculative cryptos for multibagger return potential.
Dogecoin (DOGE-USD) promises to be among the thrilling cryptos to buy considering the backing of Elon Musk.
Recently, Twitter changed its logo to DOGE and the crypto surged by 30%. Musk has also asked a U.S. judge to end the $258 billion lawsuit. All these events ensure that there is ample trading and speculative activity around DOGE.
The euphoric rally in the meme coin during the last bull market will still be fresh in investors memory. I don’t expect 50x or 100x returns from current levels. However, if Bitcoin trades at new highs, DOGE will be higher by 5x to 10x from current levels.
An impending catalyst for Dogecoin is the possible payment integration with Twitter. That seems likely in the coming quarters. Dogecoin also has a wide community, which is essential for the success of a meme coin.
With 4.7 million holders, there is a strong case for wider adoption as a currency once overall cryptocurrency adoption increase.
inSure DeFi (SURE)
inSure DeFi (SURE-USD) token has surged by 140% in the last 30 days. This indicates the potential the token holds. If Bitcoin continues to rally, I expect the token to deliver multi bagger returns in quick time.
inSure claims to be the first DeFi, NFT and Metaverse insurance system. By holding SURE tokens, investors can benefit in three ways. First, investors get insurance cover for their portfolio of assets. As an example, by holding 150,000 SURE tokens, the insurance cover is for $40,000.
Furthermore, the SURE tokens have an attractive APR. Currently, SURE tokens can be staked for an APR of 24%. Additionally, investors stand to benefit from the rise in token value in the bull market. With rise in scams, inSure token has a big addressable market and if the project can be scaled-up, multibagger returns are in the offering.
In the last bull market, Zilliqa (ZIL-USD) had surged to 26 cents. Currently, the coin trades at three cents. On a conservative basis, I expect ZIL to touch new highs in the next 12 to 24 months. Therefore, 10x returns seem very likely, but the potential is bigger.
As an overview, the Zilliqa platform can be used to create user-friendly dApps. Zilliqa differentiates itself from other blockchains in two ways. First, the transaction cost is significantly lower as compared to Bitcoin or Ethereum.
Furthermore, Zilliqa is the world’s first sharding based blockchain. In sharding, transactions are split into smaller groups and divided among miners for parallel verification. As a result, the transaction speed is significantly higher as compared to Bitcoin or Ethereum.
It goes without saying that as the number of projects swell in the Zilliqa ecosystem, ZIL coin will trend higher. Currently, ZIL has 31.98% of the circulating supply staked at an APR of 13.59%. Considering the benefits of the blockchain, I believe that supply will get tighter in the coming years and ZIL will skyrocket.
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.