The cryptocurrency market is no stranger to volatility and astronomical gains. While many investors flock to the more established digital currencies like Bitcoin (BTC-USD) and Ethereum (ETH-USD), there’s a certain allure to the idea of investing in lesser-known, micro-cap cryptos. These “degen” high-potential cryptos can turn a small gamble into a life-changing amount in the blink of an eye.
However, it’s important to understand the risks associated with these small-cap cryptos. They are very susceptible to massive swings, and the chances of experiencing losses are much higher than the likelihood of realizing meaningful gains. Nonetheless, if you have an appetite for risk and a willingness to embrace the potential for immense upside, allocating a portion of your “fun money” to these high-risk, high-reward cryptos could prove worthwhile, and then some, if even one of them takes off.
Here are three to look at:
DojoSwap (DOJO-USD)
DojoSwap (DOJO-USD) is similar to Uniswap (UNI-USD). It is an automated market-maker (AMM) protocol. The difference is that while Uniswap is on the Ethereum blockchain, DojoSwap is on Injective (INJ-USD).
If you’ve been exploring the crypto markets regularly, you know what Injective is. It has been one of the biggest gainers so far, and it reached a valuation of $4.86 billion before coming back down to $2.4 billion as of writing. I believe it will likely bottom out from here.
But in short, Injective is a blockchain that is focused on decentralized finance. It is a proof-of-stake blockchain with 10,000-plus TPS and all the necessary functions for becoming a big DeFi ecosystem in the coming years. I believe DOJO could ride its tailwinds in the coming years if it becomes successful.
DOJO currently has a market cap below $1 million as of writing, and it could quickly deliver multibagger returns if Injective makes a swift turnaround and DOJO gets more exposure. Nonetheless, I will warn you that the dilution here could be massive. The crypto only has 0.19% of its total supply currently circulating. This means it would have to have a market cap of $507 million to maintain its current price of 63 cents if all available tokens were to be released today. Of course, it won’t dilute overnight and it will likely take years or even decades. But even a fraction of that dilution can cause problems going forward.
Yak DAO (YAK-USD)
Yak DAO (YAKS-USD) bills itself as the first recreational property DAO, with a focus on sustainable, eco-friendly real estate investments that aim to positively impact the environment. 30% of revenues from YAKS properties go towards buybacks and staking rewards for YAKS token holders. Thus, you’re indirectly investing in luxury real estate by buying the token.
RWA (real-world asset) blockchain projects are one of the hottest investment plays during this crypto bull cycle. I think Yak DAO could be one of the bigger names in this space once it gets more attention. It is still a very new project.
Yak launched its token on April 2nd after a strong debut on TokenFi’s launchpad. The roadmap looks compelling, with plans to offer prime locations globally over the next couple of years. Yak also has partnerships with leading travel and hospitality firms.
The project recently locked 43 million YAKS via FlokiFI worth $2.2 million. That’s quite an impressive amount for a project yet to list even on CoinMarketCap.
Serenity Shield (SERSH-USD)
Serenity Shield (SERSH-USD) is another micro-cap crypto that can deliver gains, but I am placing this in third place on this list since the path forward is not so clear-cut.
What Serenity Shield does is “solves” one of the biggest problems on the blockchain. It does so with its patent-pending StrongBox® DApp technology. A big problem regarding crypto is that when someone passes away, there is no way for their loved ones to access their crypto and inherit it. People with a big stash of crypto can set up some nominees on the StrongBox protocol, which will automatically notify nominees if they fail an activity trigger.
It has a $1.8 million market cap and has declined quite a lot recently. However, if you think that this tech can see a lot of adoption in the future, it could be a good long-term bet.
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.
