The hype around the metaverse has simmered down in recent weeks, along with the broader crypto market. But while this speculative sector remains out of favor, for now, the long-term growth story is far from over. I believe the metaverse still offers explosive upside, especially for patient investors willing to buy quality projects during this temporary lull.

As I’ve noted in recent articles, Bitcoin (BTC-USD) tends to correct ahead of its halving events. With the next halving just months away, it’s no surprise Bitcoin pulled back from its peak above $73,000. However, if history repeats, Bitcoin could start notching new highs in the coming months as a tightening of supply kick in. This supply shock effect often ignites altcoin rallies, with metaverse and blockchain gaming tokens among the biggest beneficiaries.

While more caution may be prudent with play-to-earn cryptos after their parabolic rise and fall, I think indirect metaverse plays offer intriguing upside potential at current valuations. Lastly, I believe these metaverse cryptos could collectively yield 20X returns by 2025. I do not think Ethereum (ETH-USD) alone will 20X in one year. That said, here are three investors may want to devote some research to right now.

Ethereum (ETH-USD)

I typically avoid discussing the top few cryptocurrencies in depth given their widespread familiarity among crypto investors. However, an exception is warranted for Ethereum as the pre-eminent metaverse crypto. The majority of metaverse projects are using Ethereum’s network and ERC-20 token standard. Ethereum serves as the foundation for almost all major metaverse initiatives, a dynamic I expect to persist moving forward.

If the metaverse gains momentum and these Ethereum-based projects gain more popularity, demand for Ethereum itself could surge dramatically. That’s because ERC-20 transactions require ETH tokens. Another advantage is Ethereum’s dominance in the NFT space, commanding an enormous 72.3% market share. While Solana (SOL-USD) has made some inroads, Ethereum retains its commanding position.

Ethereum has firmly established itself as the premier metaverse crypto through its near-monopoly on metaverse building blocks like NFTs and ERC-20 tokens.

Render (RNDR-USD)

I first covered Render (RNDR-USD) near $1.30 per token, and the project proceeded to hit an all-time high of $13.60 just one month ago. Although declining 40% since its peak, I believe this pullback remains temporary with much greater upside ahead.

For those unfamiliar, the Render Network enables GPU resource sharing, allowing users to rent and purchase computing power. This project provides an intriguing blockchain use case, allowing for GPU resources to be shared via a decentralized network.

With immersive graphics and video rendering demand accelerating, Render offers ideal utility for the current environment. Upcoming launches like OpenAI’s text-to-video Sora model will further boost demand for GPU cloud computing. In fact, I expect text-to-video models will eventually leverage blockchain networks like Render, where users contribute computing power in exchange for tokens.

This project’s potential appears immense, especially as the metaverse re-emerges and rendering demand skyrockets. Despite the token’s 40% decline, Render’s $3.1 billion valuation fails to reflect this enormous potential. It can help power metaverse graphics alongside other rendering tasks. This leaves me highly optimistic about Render long-term.

Blue Kirby (KIRBY-USD)

Blue Kirby (KIRBY-USD) does not represent a traditional metaverse crypto. However, it could benefit from play-to-earn metaverse gaming through its NFT offerings and associations with the Kirby video game character. Although not a pure metaverse play, Blue Kirby’s microscopic $720,000 market cap offers enticing upside potential. Current prices remain near all-time lows after the project’s “soft rug” earlier this year.

Since the rug, Blue Kirby’s token distribution and fundamentals have improved dramatically. The original team can no longer rug the project, while holder counts continue increasing amid retained popularity. With its token price now trading at rock-bottom levels, even a partial recovery toward its former market cap could generate substantial gains.

As a fully diluted project on Fantom (FTM-USD), Blue Kirby also provides scarce upside exposure on a blockchain with a big $2 billion market cap. The risk-reward tradeoff appears skewed sharply upward from current prices.

Small, low-volume cryptos

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.