With Bitcoin (BTC-USD) trading at $44,000, there is no doubt that the crypto winter has finally ended. Going by the past bull markets for cryptocurrencies, a massive rally is coming for high quality coins and tokens. In general, the bull market starts with Bitcoin and is followed by the euphoria in altcoins. Therefore, it’s a good time to consider some cryptos with 10x potential.
Certainly, 10x potential in equities might mean a matter of years. In the last bull market, some altcoins skyrocketed by 10x in a matter of weeks. Of course, not all bull markets are the same. However, quality cryptocurrencies may have an easy 10x potential in the next 24 to 36 months.
Before the beginning of next year, savvy investors target some exposure to these potential multibagger cryptocurrencies.
Bitcoin (BTC)
Many believe that the blue-chip of cryptocurrencies can potentially trade above $400,000 by 2027. Let’s examine several reasons to be bullish on Bitcoin.
In 2024, the halving event is likely to be a major catalyst. In prior instances, Bitcoin halving has been followed by a stellar rally. Standard Chartered expects Bitcoin to trade at $120,000 by the end of 2024, implying 3x from current levels.
Another big impending catalyst for Bitcoin is the likelihood of a spot ETF. Analysts believe that it could come in early 2024 and would trigger some big buying. Further, global economic conditions point to potential rate cuts next year. Bitcoin is likely to do well during expansionary monetary policies.
Finally, the demand-supply factor is likely to come into play. As cryptocurrency adoption increases globally, Bitcoin is likely to trend higher in the wake of demand and limited supply. Therefore, it’s not unrealistic to assume that Bitcoin is among the cryptos with 10x potential.
Uniswap (UNI)
Recently, Franklin Templeton CEO Jenny Johnson revealed that she owns Bitcoin, Ethereum (ETH-USD), Uniswap (UNI-USD), and Sushi (SUSHI-USD) in her portfolio. Positions by big investors add to the confidence in cryptocurrencies.
It’s reasonable to be bullish on the long-term outlook for Uniswap. As an overview, Uniswap is a decentralized exchange. Considering the trading volumes, it’s the largest decentralized exchange in the world.
In May 2021, UNI token was trading near $45. Even if the token touches previous all-time highs, it would imply almost 8x returns from current levels of $6. Given the projections for Bitcoin, 10x would be an easy target for UNI token. As cryptocurrencies trend higher, trading volumes (centralized and decentralized), will swell. This is likely to benefit Uniswap.
A potential risk to the bullish thesis for Uniswap is regulations that are equally applicable to centralized and decentralized exchanges. However, even with that factor, Uniswap is attractive considering the renewed growth in total value locked.
Zilliqa (ZIL)
Zilliqa (ZIL-USD) is another coin where 10x or 20x returns are a likelihood. In the last bull market, ZIL coin had touched highs of 25 cents. Even if those highs are re-tested, ZIL would deliver 11x returns. It’s highly probable this scenario will pan out sooner than expected.
The Zilliqa network claims to be the world’s first network that works on the concept of sharding. Specifically, transactions are grouped into smaller groups and divided among miners for parallel transaction verification. The result is a swifter transaction. And, Zilliqa has a significantly lower cost as compared to Bitcoin or Ethereum.
Besides this fundamental factor, ZIL coin has an attractive staking reward. The current APR is 13.18%. For an undervalued coin, the attractive APR acts as a big bonus. As the cryptocurrency world expands, it will translate into more dApps on Zilliqa. Therefore, ZIL is likely to see strong demand.
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.
