After peak euphoria in 2021, the cryptocurrency market has witnessed an extended bear market. I believe that was necessary to flush out the excesses in the system. The number of listed coins and tokens had surged, and there was more speculation than promising long-term projects.
Bitcoin (BTC-USD) witnessed a sharp reversal in 2023 and this might signal the end of the bear market for cryptocurrencies. It’s possibly the best year to consider long-term crypto investments. If the bull market is back in the coming quarters, multibagger returns will come quickly.
This article focuses on crypto investments worth holding irrespective of bull and bear phases. If we look at equity markets, there have been sustained value creators among stocks over the last few decades. The same is likely to hold true for cryptos where a selected number of assets will create immense value in the long-term.
Let’s discuss three long-term crypto investments that could make you rich by holding until 2030.
Bitcoin (BTC)
Without a doubt, my first investment in the cryptocurrency space would be Bitcoin. The digital asset can be likened to a blue-chip stock. It’s worth noting that after remaining in a downtrend for an extended period, Bitcoin has surged higher by 56% year-to-date.
I believe the cryptocurrency will trend higher in the coming quarters. One reason to be bullish is the point that Bitcoin’s halving is due in 2024. In the past, this event has been associated with a big rally in the cryptocurrency. Standard Chartered expects Bitcoin to touch $120,000 by the end of 2024. Given the intensity of the rally in the past, I would not be surprised if the crypto reaches this target.
Another reason to be bullish on Bitcoin is the wider adoption of cryptocurrencies. Some estimates suggest that the number of crypto users could touch 1.2 billion by 2025. For new investors, considering exposure to Bitcoin is an obvious choice. With limited supply, the digital asset will trend higher as demand swells.
Ethereum (ETH)
If I had to consider exposure to only two cryptocurrencies, it would be Bitcoin and Ethereum (ETH-USD). Ethereum has underperformed in 2023 as compared to Bitcoin. However, I would not be surprised if Ethereum is an outperformer in the next five years.
With the Ethereum merge completed, the network’s energy usage is likely to decline by 99%. I believe that this factor is still to be discounted in the asset. In July 2022, Vitalik Buterin clearly stated that Ethereum development would likely be only 55% completed following the merge. As the roadmap progresses in the next few years, Ethereum is likely to trend higher.
I believe there are two big impending catalysts for Ethereum price action. First, if the network fee is reduced, it’s likely to have a big impact on blockchain usage. Further, the transaction speed needs to increase through sharding. Overall, Ethereum seems poised to be a multibagger over the next few years.
Zilliqa (ZIL)
Zilliqa (ZIL-USD) is another name among long-term crypto investments that could deliver multibagger returns. ZIL has remained sideways year-to-date, even as the bigger names surge higher. I believe a big breakout on the upside is imminent.
As an overview, Zilliqa is the world’s first sharding-based blockchain. Parallel transaction verification in sharding allows for faster transaction speed. At the same time, the transaction cost is significantly lower as compared to Bitcoin or Ethereum.
When it comes to generating returns, there is another benefit that’s worth discussing. ZIL coin currently offers an APR of 13.08%. Robust! According to data, around 30% of the circulating supply is already staked.
The supply will further tighten as the number of dApps on the blockchain increases. In my view, Zilliqa can deliver 10-bagger or 20-bagger returns from current levels if Bitcoin trades above previous highs.
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.
