Cryptocurrencies have been on a long-term downtrend since November, so many investors are disinterested in buying crypto for now. However, not all cryptocurrencies are the same and some projects have great potential to be highly profitable by 2025. I believe 2025 will be an excellent year for crypto because the next Bitcoin (BTC-USD) halving will occur in 2024. Essentially, the supply of BTC will become scarcer as rewards for mining blocks will be halved. That could trigger a crypto bull market since most cryptocurrencies follow Bitcoin’s price action.
Moreover, looking at historical price trends, it is evident that Bitcoin halvings trigger crypto bull markets. Thus, it is a good idea to accumulate some promising tokens when prices are low. Of course, there is a lot of uncertainty about the current state of the economy, so I wouldn’t recommend making significant lump sum investments into cryptocurrencies as prices are likely to fall even further. Nonetheless, short-term price action is irrelevant if you are willing to hold until 2025.
Therefore, I have identified the following five cryptos with multibagger potential by 2025:
|BNB-USD||Binance Coin USD||$290.91|
|FTT-USD||FTX Token USD||$30.90|
Multibagger Cryptos: Ethereum (ETH)
Ethereum (ETH-USD) is the second-largest cryptocurrency project and could surpass Bitcoin in the next bull market. Since its inception, ETH has outperformed BTC in every bull run. That trend is likely to continue due to Ethereum being more sophisticated than Bitcoin. In addition, a significant upgrade called “the Merge” will switch Ethereum to a proof-of-stake network in September 2022. After this upgrade, mining ETH will no longer be possible.
Moreover, staking rewards will continue to be locked even after the upgrade for some time. Thus, Ethereum will likely outperform most other cryptocurrencies in the short and long term.
Binance Coin (BNB)
Binance Coin (BNB-USD) is the native currency of the Binance blockchain, the largest cryptocurrency exchange. The Binance smart chain contains many BEP20 tokens. Anyone who wishes to transact in or mint these tokens must pay gas fees using BNB. Thus, the demand for Binance coin is likely to remain high.
Furthermore, a crypto bull run around 2025 will bring in millions of new users for the Binance exchange, which will fuel the growth of the BNB token. With that in mind, I believe the Binance coin could deliver multi-fold returns if you dollar cost average it until 2025.
Multibagger Cryptos: Ripple (XRP)
Ripple (XRP-USD) is a scalable cryptocurrency with a very complex algorithm. The most significant advantage of Ripple is that large financial institutions use it and it could be the go-to cryptocurrency for countries looking to implement central bank digital currencies (or CBDCs).
The latest crypto bull run has already increased the adoption of digital currencies significantly. By 2025, many more institutions will likely accept crypto as a payment method. Most countries are already exploring CBDCs, which could push banks to integrate cryptocurrencies into their services. That is great news for Ripple since the network already works with multiple banks. Thus, I think XRP will likely deliver robust profits by 2025.
Stellar (XLM-USD) is similar to Ripple since it also focuses on introducing the blockchain to day-to-day finance. Although Stellar currently works with fewer banks, it can be a significant project once banks start integrating the blockchain. In addition, the Stellar network is very secure and fast as holders cannot have a balance of less than one XLM.
In addition, the Stellar network also makes use of its native token, XLM, by using it as an intermediate currency for swaps, as well as a currency for paying gas fees. Thus, I believe XLM has multibagger potential as it can become a mainstream method for currency conversions.
Multibagger Cryptos: FTX Token (FTT)
FTX Token (FTT-USD) is the native currency of the FTX exchange. Although the FTX exchange isn’t the largest, it enjoys the advantage of delivering unique features in the U.S. compared to other crypto exchanges. Its largest competitor Binance is banned from the U.S., and even Binance.US, which seeks to comply with local regulations, is unsupported in four U.S. states. That includes two major states: Texas and New York.
Of course, Binance.US can still compete. However, FTX has lower fees and was founded in the U.S. by Americans, which makes it more competitive locally. On the other hand, Binance’s connections with China could make it less appealing to U.S. regulators due to geopolitical issues. Thus, I think the FTX token can deliver multi-fold returns as it is likely to dominate the crypto market, at least in the U.S.
On the date of publication, Omor Ibne Ehsan 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.