The metaverse hype train veered sharply off the tracks in late-2021 as crypto markets soured. This left many virtual worlds feeling more like ghost towns. But while metaverse mania has cooled considerably, I believe the long-term growth narrative for Web3 and immersive digital environments remains intact. Cyclical downturns are par for the course in crypto, and today’s laggards can spearhead gains when the next bull run begins.
Several catalysts on the horizon could re-ignite “meta mania” and crypto bullishness more broadly in 2024 and beyond. More Bitcoin (BTC-USD) ETF approvals, block reward halvings, and potential Fed rate cuts could all fuel digital assets. We’ll look at some top projects today instead of small-cap cryptos. Here are three to consider based on their ties to Web3 and the metaverse.
Ethereum (ETH-USD)
Ethereum (ETH-USD) remains the go-to cryptocurrency for anyone seeking major exposure to the Web 3.0 ecosystem. Even if the recent metaverse and NFT frenzies have cooled, Ethereum still stands as the leading blockchain underpinning countless decentralized apps and services.
Ethereum’s key edge over Bitcoin relates to its support for smart contracts and advanced functionality beyond payments. As the dominant Web3 blockchain, most projects being built in areas like DeFi, NFTs, and the metaverse, increasingly rely on Ethereum’s global computing network. Users of these apps must pay gas fees in Ethereum, creating perpetual demand even during bear markets.
This wide utility and role as the “fuel” of Web3 is why Ethereum has massively outperformed Bitcoin in previous bull runs. And with the major Dencon upgrade slated to launch by mid-2024, I expect Ethereum’s advantage over Bitcoin to widen further in the next cycle. Dencon aims to slash Ethereum gas fees by up to 90% while accelerating layer-2 scaling solutions.
So, if we do get an influx of new crypto buyers and restore Web3 hype, I anticipate Ethereum providing major upside. We could see surging decentralized application usage, NFT sales volume growth, and higher gas consumption pushing Ethereum prices significantly higher, perhaps even to new highs. For broad exposure to a potential Web3 resurgence, Ethereum remains the leading crypto to consider.
Solana (SOL-USD)
Even if the upcoming Dencon cuts Ethereum fees and enhances layer-2 capabilities, transacting and building on Ethereum will likely remain pricier and more cumbersome than alternatives like Solana (SOL-USD).
With lightning-fast speeds and rock-bottom fees, Solana presents a compelling Web3 option for both developers and users. It has already successfully peeled off market share from Ethereum in NFT trading volume and other areas like DeFi.
I expect the network effects and composability benefits of building on a high-activity chain like Solana to help it gain additional traction if we enter a fresh bull cycle, particularly if congestion and high gas fees resurface on Ethereum amid surging usage.
Of course, Solana still has progress to make, notably in improving its network reliability and uptime. However, the Solana team has made big strides in optimizing stability and mitigating outages over the past year.
Given the immense room for adoption and growth, I think Solana’s price levels around $90 per token seem attractive. Despite its early-stage flaws, Solana remains one of my top altcoin picks for mega returns if the Web3 and metaverse themes catch fire again.
Render Token (RNDR-USD)
Unlike Ethereum and Solana, which are essentially generalized Web3 blockchains, Render Token (RNDR-USD) and the Render Network target a specific niche – GPU graphics processing power.
Render operates a network that lets users easily buy and sell excess graphics and compute resources for rendering 3D visuals, animations, models, and more. This on-demand access allows smaller creators to tap into strong GPU performance without substantial up-front investment.
As metaverse and Web3 content creation pick back up, Render stands to see surging demand from various verticals like architectural and product visualization, special effects, advertisements, video game development, and VR/AR experiences.
In fact, Render’s native token RNDR has already rocketed higher in recent months – surging from around 40 cents to current levels approaching $4. I expect this momentum to continue over 2023 and 2024 if the overall environment improves for cryptos and its futuristic applications.
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.
