The cryptocurrency market has been relatively flat overall since June 2022. At that point, crypto market capitalization fell below $1 trillion. That culminated in a massive downturn precipitated by interest rate hikes that crushed speculative investments in stocks and cryptos.
Since then, things have gone sideways while slowly improving. The value of all capital invested into crypto now stands above $1.1 trillion. A bull run has not materialized despite the growth over the last year. A bull run will occur sooner or later. What precipitates it remains pure speculation. Guessing at it is unimportant. What is important is simply taking a stand and investing. The three cryptos below will certainly appreciate in a bull run.
Bitcoin (BTC-USD) will almost certainly be the bellwether for the next bull run in crypto. As it goes, so goes the crypto market. Predicting its next takeoff is essentially an exercise in futility. I don’t know when that will be, and neither does anyone else.
But certain events are very likely to positively affect Bitcoin prices. One of the more salient of which is Bitcoin halvings. A Bitcoin halving is a mechanism that is built into its protocol by which the amount of BTC received for adding a block to the blockchain is halved. Miners who add blocks now receive 6.25 BTC. That number will drop to 3.125 at the next halving, expected in less than a year’s time.
Bitcoin halvings have reliably coincided with increases in BTC value over time. It makes sense: It becomes more difficult to get Bitcoin each time, and scarcity therefore rises. How high BTC prices rise at that point is pure speculation as well. In any case, the traditional financial system is as shaky as ever. That only increases the potential for BTC and crypto overall.
XRP (XRP-USD) is a crypto to buy before the next bull run, not only because rising tides take all ships higher. It’s one to buy now because it seems more likely that Ripple, XRP’s parent company, will be vindicated in its court battle against the Securities and Exchange Commission.
The SEC had moved to seal deliberations records that followed a speech by ex-director William. In that speech, Hinman stated that ETH was not a security. The presiding judge denied the SEC’s motion to seal those documents meaning they now become admissible in the court’s ruling regarding XRP’s status as a security.
The thinking goes that if ETH is not a security, then by extension, XRP is unlikely to be considered a security either. That brings Ripple closer to a favorable decision with substantial repercussions for crypto. XRP is expected to perhaps multiply in value upon such a judgment. Bull run or not, XRP is likely to make money for investors sometime soon.
Polygon (MATIC-USD) is a relatively inexpensive crypto that harbors significant potential. Its potential is a consequence of its status as one of the better-structured layer 2 protocols available.
Layer 2 protocols are those that add functionality to blockchain networks. In this case, Polygon improves the Ethereum (ETH-USD) ecosystem. Generally, this is referred to as improving scalability. That means enhancing transaction speeds, reducing transaction fees, or both. Given that Ethereum continues to face the same problems it did before the merge, it’s arguable that layer 2 protocols remain valid and have utility.
I assert that crypto investors will realize that, and capital will return to prominent layer 2 solutions, including Polygon, sooner or later. Further, Polygon effectively has made Ethereum into an internet of blockchains. That will matter more as crypto continues to develop and greater connectivity is achieved. More powerful and utilitarian decentralized apps (dapps) will be developed, increasing the value of the blockchain overall.
On the date of publication, Alex Sirois 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.