The calendar has flipped to 2024, and for crypto investors, that means new opportunities and potentially big gains ahead. While Bitcoin (BTC-USD) and Ethereum (ETH-USD) tend to get the most headlines, savvy crypto traders know that smaller altcoins can deliver even higher returns.
As I’ve noted in previous articles, 2024 is shaping up to be a pivotal year for the cryptocurrency market. Between Bitcoin’s next halving event, the likely approval of a Bitcoin ETF, and potential interest rate cuts, several macro tailwinds could send crypto prices soaring.
However, if you’re willing to take on more risk in search of truly outsized returns, then lesser-known “Web 3.0” cryptos may be worth considering. The crypto projects behind Web 3.0 aim to create a more open and decentralized internet powered by blockchain.
Just note that investing in small altcoin projects is extraordinarily risky. Many may fail or lose most of their value, so only invest money you can afford to lose. Still, if you want to make a small speculative bet that could pay off big, here are three dynamic Web 3.0 cryptos to consider in 2024.
Aleph Zero (AZERO-USD)
Aleph Zero (AZERO-USD) is an Ethereum challenger that checks many of the right boxes for me; namely, high transaction speeds and low fees.
Sporting a $460 million market cap at the time of writing, Aleph Zero delivers exceptional transaction finality and throughput, claiming it can handle 100,000 transactions per second with 0.6-second finality. The project utilizes novel techniques to achieve security without sky-high validator requirements, although its 132 validators currently fall short of networks like Ethereum.
If gas costs on Ethereum persist, or Solana (SOL-USD) can’t resolve periodic stability concerns, Aleph Zero looks ready to swoop in and capture disgruntled app developers. Its feature set caters directly to builders – EVM compatibility, SDKs for leading programming languages, NFT minting/trading utilities, and more. As market dynamics shift from speculators to builders over the next few years, undervalued gems like Aleph Zero with real technology could attract significant capital inflows.
Admittedly, any microcap altcoin carries substantial risk. But with strong technical foundations and a clear path to capturing developer mindshare, I believe Aleph Zero looks positioned for significant returns over the long-term.
SmarDex (SDEX-USD)
As DeFi heats up in 2024, the battle for liquidity and volume will separate winning protocols from inferior competitors. This creates an opportunity for smaller decentralized exchange (dev) platforms promising better efficiency, yields, and ease of use compared to leading dex Uniswap (UNI-USD).
Enter SmarDex (SDEX-USD), an automated market maker dex optimized for capital efficiency and yield generation. With a fully open-sourced design and leading-edge impermanent loss reduction techniques, SmarDex aims to surpass Uniswap in terms of swap efficiency and profitability. Some data suggests it already offers the most cost-effective token swaps in crypto.
SmarDex allowss liquidity pools (LPs) to profit both from reduced impermanent loss and generated gains during volatility. Combined with an intuitive interface and automated yield aggregator, this platform’s next-generation design looks positioned to attract significant liquidity as market conditions improve.
At a modest $114 million market cap, massive growth potential exists if SmarDex can capture the attention of yield-focused DeFi users. Notably, SmartDex also been teasing a new update with a stablecoin called USDN, which could disrupt the stablecoin space and add momentum for SmarDex to becoming a fully decentralized DeFi ecosystem.
As capital flows back into the crypto sector over the next year, protocols like SmarDex could see parabolic upside.
Render Token (RNDR-USD)
Shifting gears to a more established crypto project, Render Token (RNDR-USD) has a compelling utility that could drive massive upside despite the project already possessing a $1.63 billion market cap. Render Token facilitates a network where users contribute GPU computing resources in exchange for RNDR tokens. Render then aggregates this power and sells it to visualization professionals, researchers, animators, and others who require serious number-crunching capabilities.
It’s an elegant solution allowing small-scale resource providers to efficiently monetize their hardware while enterprises and creators access affordable, eco-friendly computing power on-demand. I initially suggested buying RNDR back in March 2023 for around $1.20.
Fast forward to today, with Render riding momentum up over the $4.40 level. I believe the project’s real utility places it on a trajectory well beyond current levels. However, chasing short-term tops is risky. Given the chance of broad market volatility, I’d recommend waiting for dips back into the $3 range or better before accumulating more. That said, the upside from here still appears to be tremendous.
On Low-Capitalization and Low-Volume Cryptocurrencies:
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Read More: How to Avoid Popular Cryptocurrency Scams
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.
