As we continue into March, investors have already seen the dynamic evolution of cryptocurrency markets this year. Several key catalysts have driven this sector higher, with the recent approval of spot Bitcoin (BTC-USD) ETFs being the most recent catalyst. These ETFs have seen more than $10 billion of capital inflows, marking some of the fastest capital accumulation in this space ever. That’s something to write home about and a factor many conservative investors are now noting.

With more institutional capital flowing into this space, it’s clear that select cryptocurrencies are gaining traction. While Bitcoin is leading the way, other projects looking to redefine the future of finance may outperform.

With that in mind, let’s dive into three cryptos that I think have the potential to provide significant upside from here for those looking to play this near-term rally or for longer-term capital appreciation upside.

Ethereum (ETH)

Ethereum’s (ETH-USD) likening to digital oil underscores its centrality in DeFi. Vitalik Buterin envisioned Ethereum as a global cryptocurrency computer, and Ethereum’s introduction of smart contracts allowed this network to dominate the decentralized finance world. Ethereum’s pivotal role in digital finance ensures its ongoing influence, akin to oil’s significance in the traditional economy. Indeed, it’s the best comparison many can provide, with Ethereum already considered a commodity by regulators—something that could drive continued excitement in this token.

Altcoin Sherpa, a crypto analyst, predicted Ethereum’s potential rise to $4,000. Much of this positive sentiment has to do with Ethereum’s technical indicators. However, other investors and analysts point to the likelihood that Ethereum could also see a spot ETF approved as early as May, which would certainly catalyze more capital toward the world’s second-largest cryptocurrency.

Additionally, upgrades like Single Slot Finality promise faster transactions and increased scalability, attracting investors seeking digital wealth. Thus, Ethereum has to be on the buy list for those looking for innovation and disruption in this space right now.

Solana (SOL)

Reaching a peak at $135, Solana (SOL-USD) is now riding the broader market wave higher alongside Bitcoin. Some price predictions have Solana reaching $260 by 2024, driven by this network’s speed and cost advantage relative to its peers.

Now ranking at fifth spot by market capitalization, Solana has seen a surge of more than 120% in its daily trading volume. This now equates to $3.2 million, with many anticipating higher numbers moving forward. Investor confidence in Solana’s potential drove this increase. Solana’s Total Value Locked (TVL) rebounded, aiming for pre-FTX levels and showing steady growth since October 2023.

For investors looking to play the decentralized finance realm from the angle of transaction volume, I think Solana is the way to play this trend. It’s a top Ethereum competitor and continues to gobble up market share. An uptick in NFT sales is among the factors driving this token higher, but if more utility-generating projects jump aboard, I think there’s plenty of room for upside over the long term. That is, so long as the Solana team can keep its network stable (outages have been a pain in the side of investors in recent years).

Bitcoin Cash (BCH)

One of the best cryptos to buy as Bitcoin is gaining more popularity is Bitcoin Cash (BCH-USD). Bitcoin Cash is also an alternative payment blockchain focused on real-world projects. With stable price action around $260, it’s a top pick for momentum-driven investors, poised for higher gains.

As its name suggests, Bitcoin Cash is a project similar to Bitcoin but focused on the payments space. Interestingly, volume on this network has surged, with investors pointing to increased adoption in crypto payments as a key reason to invest in this crypto.

This is a relatively easy thesis to understand with a smaller valuation and higher upside tied to fundamental catalysts. Bitcoin Cash should also benefit from Bitcoin’s halving, with demand on this network likely to surge should transaction costs on the Bitcoin network rise as well.

All in all, I think Bitcoin Cash is probably the most speculative pick of these three. However, I think a well-balanced crypto portfolio can hold all three tokens and benefit from the diversification.

On the date of publication, Chris MacDonald did not have (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.