The crypto market is known for its extreme volatility, and the potential for permanent capital losses. However, it’s also known for its ability to produce tremendous gains in short periods of time. While the past crypto winter has seen a significant cooldown in the market, with Bitcoin (BTC-USD) declining more than 73% from its highs, this winter is thawing. With this rebound, I believe there are substantial opportunities for massive returns in the years ahead for select projects.

History shows us that Bitcoin tends to see a correction before its halving events. These halvings cut block rewards for miners in half, constricting new supply. The previous two halvings were followed by renewed bull runs that took Bitcoin to new highs. I expect we could see something similar play out over the next 6-12 months following the halving (expected later this week). This would likely ignite the next leg of the bull market for the crypto sector.

While Bitcoin itself remains an obvious buy here, coupling this token with select micro-cap altcoins could unlock outsized returns during the next bull cycle. Here are three micro-cap altcoins to consider in this context.

Serenity Shield (SERSH-USD)

As I’ve been saying for more than a year now, blockchain storage solutions could be poised for mainstream adoption as users seek decentralized (and often cheaper) alternatives to traditional data storage companies. With 100% uptime and zero chance of censorship, blockchain-based data storage has immense disruptive potential.

Serenity Shield (SERSH-USD) offers crypto inheritance services, while also securing sensitive data through its patent-pending StrongBox DApp technology. Users can securely store and preserve access to digital assets, confidential information, and other sensitive data. If anything happens to the owner, designated successors can inherit access. Inheritance is a key issue in the blockchain space, and Serenity Shield has a solution that aims to solve that.

With a current market cap of around $2.9 million, I believe Serenity Shield has significant upside potential ahead.

Banano (BAN-USD)

While it may seem easy to dismiss Banano (BAN-USD) as just another meme coin, it is worth a closer look. This project is based on Nano’s (XNO-USD) directed acyclic graph (DAG) architecture, enabling completely fee-less, near-instant transactions. Users can earn Banano by contributing computing resources to medical research through “folding.” This project’s real-world utility and loyal fanbase could catalyze substantial gains during the next altcoin run.

Banano provides a fast, simple user experience which I think is perfect for driving adoption. And with no fees or taxes on transactions, user growth and engagement should continue to rise. Meme coin mania could return in force when speculative sentiment turns bullish again. Moreover, if Nano takes off, it could bring Banano along for the ride. I believe the upside potential for this token far outweighs its downside risk.

Blue Kirby (KIRBY-USD)

Blue Kirby (KIRBY-USD) is a new meme coin on the Fantom (FTM-USD) blockchain that caught my eye during what appeared to be a rug pull of the original token. After redistributing tokens to improve decentralization and security, Blue Kirby now trades at a market capitalization of roughly $700,000. As a pure meme coin with no utility, this is one of the highest-risk cryptos out there.

However, meme mania could drive a surge in interest. With the project’s renewed developer involvement, limited exchange availability, and microscopic market cap, KIRBY seems primed for a speculative frenzy. It currently offers no technological edge, but outsized returns are possible if it attracts a loyal community again.

Fundamentals often take a backseat to hype and speculation in driving up valuations. Thus, a small KIRBY position could deliver huge upside. Of course, losses could be just as great, so you should avoid KIRBY if you don’t like risk.

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

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.