After a cooler-than-expected crypto winter, green shoots emerge as we head into 2024. Several macro factors converge that could heat up the crypto market again and produce lucrative opportunities for savvy investors.

But before we get to the picks, it’s important to level-set expectations. Small-cap cryptos are very risky assets. Despite recent positive momentum, we could see more downside before a sustained recovery takes hold. Whatever you invest should be money you can afford to lose.

With that said, I’m cautiously optimistic about crypto right now. 2023 gave us the regulatory clarity we desperately needed with the XRP (XRP-USD) lawsuit going positively for Ripple. Meanwhile, Bitcoin (BTC-USD) ETF approvals, the upcoming Bitcoin halving event, and potential Fed rate cuts set the stage for renewed crypto adoption. Let’s jump into the list of crypto to consider before crypto winter thaws.

Kaspa (KAS-USD)

After surging in November, Kaspa (KAS-USD) pulled back in recent months but just bounced 13% in the last 24 hours. I believe this marks the start of its next leg up.

Kaspa’s blockchain implements an innovative Directed Acyclic Graph (DAG) structure to achieve unmatched transaction speeds without sacrificing decentralization. Using parallel processing, Kaspa can handle 400 transactions per second while maintaining robust security protocols.

The team also created the GHOSTDAG consensus protocol. Unlike traditional blocks that build linearly, GHOSTDAG allows blocks to be created concurrently and still reach agreement on the canonical ordering through a novel scoring algorithm. This parallel blockchain architecture is key to enabling Kaspa’s blazing transaction speeds.

Essentially, Kaspa seems to solve the perennial “scalability trilemma” that caps the potential of other blockchain projects. While still in the early stage, the technology looks immensely promising. I believe Kaspa could be a top-10 crypto in the future if it proves itself in the upcoming bull run.

Dynex (DNX-USD)

Dynex (DNX-USD) is a decentralized supercomputer project built for AI. As exponential data generation and machine learning growth drive demand for processing power, Dynex’s neuromorphic architecture offers a lot of potential.

To put it simply, rather than traditional computing, Dynex leverages brain-inspired dynamics to tackle challenging problems in optimization, predictions, simulations, and more. This bio-realistic approach processes information simultaneously in an event-based manner. Dynex can also deliver societal value with its “Proof of Useful Work (POUW)” protocol. Plus, the network also financializes compute cycles to incentivize participation.

Considering the intense computing demands ahead in machine learning, I believe Dynex could be primed for real-world impact and serious growth potential. Users have also reported immense speed advantages, and it looks like a very good deal with a market cap of just $53 million.

Golem (GLM-USD)

I have written extensively about the Render Token (RNDR-USD), and Golem (GLM-USD) stands out versus that closed ecosystem. Whereas a private company controls Render Network, Golem operates as an open-source, autonomous organization.

Built on Ethereum, the peer-to-peer network connects those needing temporary processing capacity with providers having excess compute availability. Customers can directly tap into power for rendering, machine learning, and beyond.

And with Render’s impressive $1.76 billion market cap, I believe Golem looks undervalued, currently trading under $245 million. As cloud-based computing grows, Golem seems ready to capture accelerating spillover demand in this open environment. Considering computing is only becoming more crucial and ubiquitous, yet supply limitations persist, decentralized computing networks like Golem have a lot of opportunities, in my eyes.

On the date of publication, Omor Ibne Ehsan 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.