Bitcoin’s (BTC-USD) meteoric rise back above $40,000 has crypto bulls jumping for joy, and for good reason. Multiple catalysts appear to have aligned which could trigger a broader crypto bull market in 2023. As I’ve discussed in recent articles, Bitcoin itself benefits from several potential tailwinds. The approval of a Bitcoin ETF could draw a tidal wave of institutional investment to the digital asset space and Bitcoin in particular. Additionally, April’s mining reward halving may constrict Bitcoin supply growth and stoke price appreciation, as we’ve seen with previous halvings. And further Fed rate cuts would likely boost speculative assets like Bitcoin.

Now, while significant attention centers on Bitcoin, investors should remember that the broader crypto complex often moves in sympathy with Bitcoin. So, if Bitcoin enters a new bull market, many altcoins are likely to benefit tremendously as well due to this correlation.

In fact, many altcoins have vastly outperformed Bitcoin in past bull cycle runs. So, let’s highlight three cryptos perfectly-positioned to leave Bitcoin in the dust if crypto sentiment improves next year. Just like buying little-known dot-com stocks back in the 90s delivered 10X+ returns versus the Nasdaq index, buying the right crypto altcoins early could set you up for life-changing returns.

Nano (XNO-USD)

Nano (XNO-USD) has been featured in many of my recent articles covering alternative cryptocurrencies, and it has not let me down in recent weeks. This crypto, which aims to provide fast, fee-less payments, spiked from around 70 cents to $1.30 recently before starting to trade sideways.

As a reminder, Nano is designed to provide what many newcomers expect from crypto – fast, free transactions. Nano uses a unique block-lattice structure to achieve quick settlement times, without the fees or environmental impact of proof-of-work coins.

While some dismiss Nano as just a payment token without many use cases beyond peer-to-peer transactions, I believe it is well-positioned to create value if crypto payments gain traction. With a current market capitalization of around $172 million, it would not take much in the way of adoption for Nano to see significant upside.

Should the next bull market be here, Nano’s focus on being a simple payment method could make it one of the bigger winners of the hype cycle, as investors seek sustainable crypto projects with everyday utility.

XCAD Network (XCAD-USD)

Another smaller-cap crypto I have kept an eye on is XCAD Network (XCAD-USD). This new platform aims to provide content creators with additional monetization and community options.

Specifically, XCAD Network lets creators tokenize engagement with fans while also offering an exclusive NFT marketplace. Although NFT volumes have declined from their 2021 peak, I expect interest to return in tandem with the broader crypto market rally.

From a technology standpoint, XCAD Network is built on Zilliqa (ZIL-USD), a high-throughput blockchain capable of processing thousands of transactions per second at a minuscule cost. This makes it well-suited for maintaining loyalty and engagement programs at scale.

Between its focus on content creators and future-proof architecture, XCAD Network checks several boxes. While adoption is still building, the project’s vision could appeal to YouTubers and social media influencers looking for deeper fan engagement and alternate income streams. As such, I believe XCAD has breakout potential as influencer marketing and crypto adoption continue growing in parallel.

Render Token (RNDR-USD)

Render Token (RNDR-USD) is another under-the-radar altcoin I am optimistic about for the long-term. For background, Render Token aims to establish a decentralized market for computing power – similar to how Filecoin (FIL-USD) creates a marketplace for file storage.

Anyone can join the Render Network by allocating their spare GPU/CPU capacity to Render’s cloud rendering services. In turn, graphic designers, architects, and other users of processing power can access this decentralized pool of hardware capacity on demand. Members contributing resources are compensated in RNDR tokens, based on usage.

As AI, 3D graphics, and metaverse applications continue expanding, there will be no shortage of demand for massively-scalable computing capacity. Render Token could see significant tailwinds for quite some time, simply by tapping into idle consumer hardware. Not to mention, this project disrupts the existing cloud rendering industry which is dominated by higher-cost centralized providers.

I would be remiss not to mention Render Token’s high inflation rate (currently around 45.6% annually) which hampers its value proposition as a long-term investment. However, given its $1.5 billion market cap and intriguing use case, I believe RNDR provides asymmetric upside that outweighs its dilution risk.

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.