Cryptos are one of the most volatile and unpredictable asset classes in the world. They can soar to new heights or crash to new lows in a matter of days or even hours. But for some investors, that’s exactly what makes them so attractive. The potential for massive gains in a short period of time is hard to resist, especially when you see stories of people who turned a few thousand dollars into millions by investing in the right coins at the right time.
But chasing such high upside potential is not without risks. Cryptos are subject to rampant scamming, rug pulls and false promises about the underlying technology, all of which can cause you to lose most of your investments.
That being said, I believe that there are some cryptocurrencies that have the potential to deliver 1000% returns or more in the next few years. With the Federal Reserve’s rate cuts and the Bitcoin (BTC-USD) halving next year, I believe many promising projects are well-positioned to rise more than 1000% in a two-year timeframe.
Here they are:
Render Token (RNDR)
Although it’s a relatively big project compared to the other ones here, I believe a 1000% gain for Render Token (RNDR-USD) is certainly within the realm of possibility. If you aren’t familiar with the project, it is similar to Filecoin (FIL-USD), but with GPU computing power. It rents GPU power from thousands of users worldwide in exchange for the token and resells it at bulk through the blockchain.
I previously suggested buying this token in late March at the $1.7 range before changing that suggestion to a sell at the $2.4 range (where it peaked). However, it’s back trading near $1.95 and I believe now is a good time to start buying again.
Of course, the broader market dictates the price action of almost every project that has a substantial trading volume. Thus, I’d be prepared for more short-term losses if BTC slides more.
Aleph Zero (AZERO)
Aleph Zero (AZERO-USD) could very well be the next Solana (SOL-USD) if the market rallies again. It has all the necessary ingredients to drive up buzz.
The peer-reviewed blockchain claims to process over 100,000 transactions per second with near-instant finality. But what makes it better than many of the better-known Ethereum (ETH-USD) “killers” is that it supports private smart contracts, IPFS cloud storage, substrate integration and an Oracle bridge to import real-world information.
But again, even though it’s peer-reviewed, I would caution that blockchains with excessive TPS counts often have low decentralization. Indeed, it only has 121 validators, which means it’s not nearly as decentralized as Ethereum or Solana.
Regardless, if you’re more worried about the upside than decentralization, AZERO is a worthy investment.
TABOO Token (TABOO)
TABOO (TABOO-USD) piqued my interest as it raised $10 million in funding last week, led by a private family office headed by a former JP Morgan senior executive. This deal values TABOO at $250 million, and the token has been up substantially so far this year.
TABOO is not just a content creation platform. It’s also a marketplace where users can buy and sell exclusive, high-quality NFTs and merchandise.
At the time of writing, TABOO token is trading at $0.0032 with a market cap of $30.9 million, That’s far below the $250 million valuation. Thus, I believe that there is still a lot of room for growth for this project, especially when NFTs start being hot again.
Tradecurve (TCRV)
If you’re interested in more upside potential, getting into pre-sales and initial coin offerings (ICOs) is a great way to gain exposure to up-and-coming projects. Tradecurve (TCRV-USD) is one such project that caught my eye. It is currently at the second stage of its ICO, as of writing, with each token going for $0.012. The launch price of the token is $0.088, so it’s definitely a lucrative play right now.
It’s a new hybrid exchange that lets users make accounts with just an email address and essentially get all the features on bigger platforms. With regulators getting tougher on KYC requirements, I believe there will likely be an outflow of users from bigger exchanges into smaller ones like Tradecurve. Thus, the risk here is worth it, in my opinion, considering the upside potential at launch.
r/Cryptocurrency Moons (MOON)
r/Cryptocurrency Moons (MOON-USD) are the community tokens of the main cryptocurrency subreddit. Reddit is arguably the biggest platform through which retail crypto investors communicate and share their thoughts on various cryptos. Thus, MOON is among the most well-known cryptocurrencies despite its small market capitalization.
The current market cap is very small compared to the potential and influence of the r/Cryptocurrency subreddit. But one of the main catalysts that could boost the value of MOON in the near future is the listing on major exchanges. Many exchanges and their staff are active on the subreddit, and the community could persuade them to support the token during the next crypto bull market. This would increase the liquidity and exposure of MOON and will likely boost the market cap by a significant margin.
It is still a speculative and risky investment. But I believe it will offer significant returns either once the crypto market recovers or once Reddit goes public.
Solana (SOL)
Solana is currently the most popular alternative blockchain to Ethereum. It has blistering TPS counts, but as I’ve previously noted, blockchains that boast high TPS are less decentralized. Likewise, Solana suffers stability issues and has frequent “outages,” something that is unheard of in every other blockchain ecosystem. That’s the reason I’ve mostly been bearish on Solana throughout 2022, but now may be the time to change the sentiment.
Why? I believe it is currently trading at a very compelling range considering the success it has had so far in capturing Ethereum’s Web 3.0 market share. Moreover, the developers have finally acknowledged that they will be working on its stability issues, making it the main focus in 2023. Thus, a buy at the current range could easily provide multibagger returns if Solana performs well in the next rally.
XRP (XRP)
XRP (XRP-USD) has been an underwhelming cryptocurrency so far, and I definitely understand the bearish sentiment here. It has been bleeding red ink in the long run, primarily due to the Securities and Exchange Commission’s case against Ripple. It has underperformed most of the major cryptos in recent rallies and is a very risky bet right now.
The company’s case with the SEC has no end in sight, and it may be months or even years before there is a settlement, which will have a substantial impact on the entire cryptocurrency market on whether or not certain cryptos are considered securities. If the SEC fails to get a judgment on cryptos being securities, XRP will likely be a multibagger overnight. However, investors should be prepared to lose most of their investment if things don’t go Ripple’s way with the lawsuit.
Regardless, the utility here is excellent due to Ripple’s partnership with many of the top banks.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization of less than $100 million or trade with a 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 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.
Read More: How to Avoid Popular Cryptocurrency Scams
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.
