After the hype and fervor around Web 3.0 cryptos died down in 2021, many investors wrote these assets off as just another fad. But a spark could light a flame again, and savvy investors should note that Web 3.0 projects may soon enjoy another heyday.
Cryptocurrencies across the board are rising once again thanks to several key catalysts. As we all know, the Bitcoin (BTC-USD) halving is close, typically indicating the start of a bull run. That catalyst now has rocket fuel from impending rate cuts we expect to see early this year. Additionally, there are now nine Bitcoin spot ETFs trading (with more likely to come) that are driving intense demand for Bitcoin and interest in the overall sector.
Given these tailwinds, 2024 is shaping up to be a potentially huge year for cryptos overall, assuming no major black swan events materialize. History shows us that fledgling Web 3.0 projects can easily outpace the gains seen in major crytpos during bull runs.
So, in this article, we’ll explore seven of the most promising Web 3.0 cryptos that could help you maximize profits before the next bull run. Let’s dive in!
Ethereum (ETH-USD)
As the backbone of Web 3.0 innovation, Ethereum (ETH-USD) seems impossible to ignore – even for investors targeting higher risk/reward altcoin opportunities. Make no mistake about it: Bitcoin has dominated the recent crypto rally. But pierced below the surface lies a crucial trend. Ethereum has generally kept pace with its larger peer.
Since last summer’s lows, both cryptos boast strikingly similar returns. And with Ethereum powering the decentralized applications and NFTs that enable Web 3.0, its blockchain holds far more utility than Bitcoin’s. As crypto adoption advances, Ethereum’s real-world usage should only expand.
But the aspect that excites me most is Ethereum’s deflationary tokenomics. Through its shift to proof-of-stake validation, Ethereum now has a deflation rate below at 1.8%. That’s far lower than that of Bitcoin, which is inflationary. With supply growth slowing to a crawl, existing Ethereum should become more scarce over time. Expect deflationary pressure to mount as demand rises with crypto and Web 3.0 penetration.
Ethereum also trades at a 45% discount to its all-time high, meaning this token is far more depressed than Bitcoin. Once the macro backdrop improves and crypto regains its footing, Ethereum’s lower nominal price could ignite a wave of retail interest we’re not seeing yet.
Solana (SOL-USD)
As congestion and lofty fees hampered Ethereum as the last bull market matured, alternative smart contract networks like Solana (SOL-USD) filled the void. Solana skyrocketed as developers flocked to the network, lured by its blazing speeds and low transaction costs, which are two glaring Ethereum limitations.
But the network wasn’t built to scale so rapidly. Crippling outages and stability concerns emerged, decimating Solana’s token price. That said, most issues appear to be resolved now. And notably, network capacity continues expanding. If Ethereum gets overwhelmed in the next cycle, strong network demand could lift Solana higher once again.
Vitalik Buterin himself proposed increasing Ethereum gas fees to disincentivize layer-1 usage and shift activity to layer-2 scaling solutions. If that happens, Solana stands ready to soak up the spillover demand. With Ethereum holding its NFT crown by a thread last cycle, another gas bout could motivate developers to migrate en masse to Solana’s blockchain.
Despite posting 600%-plus gains off its 2023 bottom, Solana still trades 63% below its $260 peak. The narrative has clearly soured around this project, given the network instability. However, with most bugs ironed out, Solana’s razor-thin fees, and throughput scaling reliably now, this token may have the potential to more than quadruple if it reclaims its role as Ethereum’s premier rival.
Injective Protocol (INJ-USD)
While most cryptocurrencies lack inherent cash flows or physical assets, Injective Protocol (INJ-USD) targets an indispensable niche in the Web 3.0 ecosystem – decentralized finance (DeFi). As an open, decentralized network tailored for trading, lending, derivatives, and more, Injective’s blockchain brings core financial utilities to crypto.
Injective offers a unique native decentralized order book and cross-chain bridges which span various blockchains like Ethereum, Solana, and Cosmos (ATOM-USD). This interoperability positions Injective as the artery between decentralized ledgers as DeFi adoption advances. The network also eliminates front-running, ensuring fairer on-chain trading than AMM-based decentralized exchanges.
With the ability to support limitless financial market functions at lightning speeds and microscopic fees, Injective seems purpose-built for the future of decentralized trading. As retail and institutional capital permeates crypto, demand for reliable DeFi infrastructure should explode.
Render Network’s (RNDR-USD)
Render Network’s (RNDR-USD) GPU sharing model seems cleverly positioned to capitalize as AI and graphics processing explode in the metaverse era. Render democratizes access to the computing muscle many next-generation technologies rely on by enabling users to rent spare graphics card power cheaply. And with crypto miners’ used hardware hitting the market, the decentralized network enjoys a swelling pool of GPU resources to tap into.
I’ve touted Render before when it traded around $1 per token. Although it has tripled since then, the concept still intrigues me in the long-term. This token allows anyone to participate in the booming infrastructure-as-a-service trend on both ends of the spectrum, whether by contributing graphics resources or leveraging them affordably.
As cloud computing, AI, and graphics rendering gain steam in Web 3.0, Render appears heavily discounted, trading 56% below its 2021 peak. With the crypto industry still searching for straightforward utility, this network’s real-world use cases give me conviction. If macro conditions improve and another bull run brews, Render seems poised to continue outperforming.
At $3.80 per token, the risk-reward ratio looks skewed upward. For investors targeting the intersection of AI and blockchain technology, Render packs exciting potential.
Storj (STORJ-USD)
In the same vein as Render, Storj (STORJ-USD) also brings a slice of cloud computing on-chain, with a focus on storage versus processing power. Considering surging data generation and cloud storage demand, Storj’s timing looks impeccable. Global data creation is estimated to hit 181 zettabytes by 2025 – that’s 90-times greater than 2010. As small to mid-sized entities get priced out of services like AWS and struggle to handle their own data centers, Storj fills the void.
By allowing users to rent excess drive capacity in exchange for crypto, this network matches swelling storage demand with the abundant device capacity most consumers already have. And unlike the highly-inflationary Filecoin (FIL-USD), Storj’s token experiences deflation at a 3.5% annual rate.
At 60 cents per coin, Storj seems discounted relative to its long-term prospects. Data generation won’t slow anytime soon. And as more entities get priced out of legacy cloud storage providers, they may turn to blockchain-based alternatives. Few projects hold more potential than this overlooked gem if storage demand trends toward decentralization.
WOO Network’s (WOO-USD)
Shifting from cloud computing to decentralized finance, WOO Network’s (WOO-USD) exchange and trading focus makes it a targeted DeFi play. Not only does this network’s X Platform offer a centralized crypto exchange with deep liquidity and advanced analytics, but WOOFi simultaneously operates a permission-less decentralized exchange, accommodating token swaps and yield generation.
Bridging the gap between centralized and decentralized trading, WOO provides the best of both worlds in a consolidated ecosystem. Users benefit from institutional-grade services, liquidity on WOO X, access that can’t be censored, and community rewards via WOOFi’s AMM-based model.
As crypto trading expands, such hybrid models should see robust demand. WOO optimizes execution quality without compromising accessibility or user control. At its current 40 cent price and $772 million market cap, this network’s standalone exchange and DEX dual solution seem under-appreciated if the prevailing trends around trading in both CeFi and DeFi endure.
Fetch.ai (FET-USD)
Fetch.ai (FET-USD) piqued my interest recently, as the narrative around artificial intelligence permeating Web 3.0 builds. This protocol leverages blockchain technology to build a decentralized machine-learning network for securely managing data and running predictive analytics.
In a way, Fetch.AI democratizes and decentralizes access to AI like Render, and accomplishes this for graphics processing. Fetch.ai cuts out the Big Tech intermediaries currently dominating the AI landscape by coordinating a distributed network of devices to share and monetize data. Any developer can tap into the network’s shared resources to train machine learning models or develop intelligent apps.
As AI development costs swell, this communal approach Hits a sweet spot, particularly for smaller teams. Although Fetch pumped 10X off its 2022 lows, the project’s sub $600 million market cap seems tiny if developers truly start leveraging the network at scale.
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.
