Even though the broader market has been in a prolonged bear cycle, the crypto market has been very resilient this year. I believe there are still plenty of hidden gems waiting to be discovered. The key is finding low-market-cap cryptos before they gain widespread traction.

Stalwarts like Bitcoin (BTC-USD) and Ethereum (ETH-USD) should form the core of any crypto portfolio. But if you’re looking for millionaire makers in exchange for more risk, small-cap altcoins may be worth considering. Just remember that many of these assets are highly speculative. Without anyone regulating cryptocurrencies, there’s minimal protection for investors.

So, while the prospect of buying a virtually unknown crypto and watching it skyrocket 1,000% or more is certainly tempting, it’s critical to do your due diligence. Always take a measured, research-driven approach, allocating a reasonable portion of investable assets to a diversified basket of promising small-cap cryptos to supercharge your returns.

In this article, I’ll share my top 3 speculative altcoin picks that I believe have the potential to make us crypto-millionaires if this bull market kicks back into high gear. Again, small-cap cryptos are on the extreme end of speculative assets, and you should tread very carefully before you invest. Let’s start!

Storj (STORJ-USD)

Storj (STORJ-USD) is a unique blockchain-based cloud storage solution that allows people to rent out excess storage space in return for STORJ tokens. The network then aggregates this distributed storage into an enterprise-grade cloud solution that competes with the likes of AWS.

I’m convinced decentralized storage will thrive long-term, and Storj is well-positioned here. Its hybrid model maintains a central authority for coordination and tech support, unlike the fully decentralized Filecoin (FIL-USD). This will likely attract more institutional buyers.

But the real edge for Storj is tokenomics. Filecoin has a high 59% annual inflation rate from mining rewards. In contrast, Storj’s inflation rate is negative 10% due to its burn mechanism. This superior monetary policy means STORJ could dramatically outperform FIL price-wise if both networks see similar adoption.

Recent benchmarks also showed Storj’s own cloud storage outperforming AWS. As a bonus, Storj is testing file-sharing and streaming applications on top of its robust storage layer.

With a market cap of just $164 million compared to Filecoin’s $2 billion, STORJ has lots of upside potential, in my view. The negative inflation is a huge catalyst that could send STORJ soaring. And if the cloud storage use case starts gaining real enterprise traction, we could see 10x-100x returns from here.

SinVerse (SIN-USD)

SinVerse (SIN-USD) is a virtual world and empire-building game that incorporates blockchain technology and play-to-earn mechanics.

Formerly known as Sin City Metaverse, SinVerse aims to foster a thriving player-driven economy within a mafia-themed metaverse. This unique twist gives the game an edgy appeal compared to more traditional P2E models. Backed by seasoned gaming professionals, SinVerse had a flashy debut at Gitex 2021 in Dubai, selling virtual land plots for over $4 million dollars.

The game empowers users to engage in crypto and NFT trading activities inspired by mobster scenarios. With the native SIN token powering in-game transactions, they plan to drive volumes higher by introducing staking, a marketplace, tournaments, and mobile integration.

Building out an entire metaverse is no easy feat, but this team has the experience to pull it off. Their commitment to enhancing gameplay through ongoing innovation is key. And the mafia plotline gives SinVerse a distinct edge to stand out in the crowded metaverse space.

While highly speculative, a project like this has serious upside potential if adoption continues growing. And since SinVerse’s virtual real estate already sold out quickly, there’s proof of strong early demand. Considering its low market cap, SIN could deliver triple-digit gains or more from here if the metaverse gains traction.

Aleph Zero (AZERO-USD)

The last hidden gem crypto on my radar is Aleph Zero (AZERO-USD), an ambitious privacy-focused blockchain project with some impressive tech under the hood. At first glance, Aleph Zero checks a lot of boxes: high scalability, security, decentralization, smart contracts, and zero-knowledge proofs for private transactions. The protocol is based on a novel DAG consensus model that’s been academically peer-reviewed.

With so many “Ethereum killers” emerging, Aleph Zero stands out with its strong technical foundations. Plus, the need for more scalable, private, and decentralized layer 1 chains is clear as Ethereum fees remain high.

However, the decentralization picture isn’t perfect. Aleph Zero only has 130 active era validators nominated by around 8,000 nominators. Compared to Ethereum’s 877,000 validators, that’s quite low. So, while the tech is great on paper, real-world decentralization needs improvement.

That said, Aleph Zero has made significant strides recently, breaking above $1 with rising momentum. If the bullish momentum sustains, Aleph Zero could retest its previous all-time high of around $2.50. And given its small sub-$300 million market cap, there is massive upside potential.

But with only a year and a few months of trading history, it’s hard to predict Aleph Zero’s path ahead. With smart timing, though, this crypto could definitely deliver millionaire-making returns.

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with 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 a 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.