The cryptocurrency market has much more room to grow now that Ripple Labs has prevailed in court against the SEC. XRP (XRP-USD) has been judged not to be a security, and its sales weren’t in violation of investor protection laws.
The judgment should act as a precedent that could lead to similar outcomes for firms battling the SEC against similar allegations. The overall effect is simple – an expectation of less regulatory oversight and renewed potential for crypto innovation and growth. In turn, there is now reason to believe that the entire industry can thrive, including lesser-known cryptos.
Notably, crypto behemoth Bitcoin (BTC-USD) continues to trade above the key $30,000 level, and has been for the last several weeks. Sustained higher prices for Bitcoin bode well for the sector overall.
With these factors in mind, here are three under-the-radar cryptos to buy for those betting on a continued rebound in this sector.
Monero (XMR-USD)
Key privacy coin Monero (XMR-USD) is a relatively simple cryptocurrency to understand. This project aims to conceal the identity of transacting parties in every crypto transaction. That is why it matters, and why it continues to have big-time potential.
The XRP ruling actually doesn’t help Monero. In some sense, Monero would have been better off if the SEC had prevailed. That’s because crypto investors would have been more fearful of increased regulatory scrutiny, and privacy concerns would have risen. Monero, in turn, would have become a more logical choice for its anonymity functionality.
That said, Monero is still important. Anonymity through advanced cryptography is important to crypto enthusiasts. And no, not all people who advocate for anonymity are doing so because they want to engage in illegal activity. Some simply don’t trust institutions and regulators, and that isn’t entirely unjustified.
Bitcoin doesn’t provide anonymity. You can use it to conceal your identity, but since the blockchain is transparent, it’s relatively easy to trace the source of a given transaction. Thus, for those betting on privacy remaining integral to the crypto sector, Monero is a token to bet on for the long-term.
Hedera (HBAR-USD)
Hedera (HBAR-USD) will continue to have great potential because of its enterprise-grade network and utility. Large enterprises are increasingly likely to adopt blockchain functionality into their business models the longer crypto sticks around.
Given the fact that Bitcoin is again trading above $30,000 per token and Ripple beat the SEC, it’s entirely logical to assume that crypto has entered a new bull market. There are suddenly fewer reasons to dismiss the disruptive nature of cryptocurrencies as a technological force. The sector has proven resilient, and persistent resilience leads to broad acceptance.
That means many of the arguments made by traditional enterprises who have rallied against adopting blockchain technology are growing weaker as time passes. Those enterprises that were on the fence about dipping their toes into the blockchain waters are suddenly more likely to give it a try.
Hedera is the most-used enterprise network, and familiarity is a great selling point. If you’re an enterprise leader tasked with identifying blockchain integrations for your firm, Hedera is probably the first place you’re going to look.
Cosmos (ATOM-USD)
My assertion is that Cosmos (ATOM-USD), and all other cryptos with long-term potential, have such upside due to their inherent utility. If a crypto/blockchain project isn’t adding utility, or trying to solve a problem for users, it isn’t going to thrive. Trendy cryptos like Pepe (PEPE-USD) will crop up again and again, but they are doomed to fail if they don’t solve a problem for users. That goes for similar projects like Dogecoin (DOGE-USD) and Shiba Inu (SHIBA-USD), which have dubious origins but have remained popular for the last few years.
Anyway, I digress. Cosmos’ goals are all centered on solving hard problems. There are a number of core problems Cosmos is looking to solve. The project is focused on creating an ecosystem of connected blockchains. Part of doing so is by an Interblockchain Communication protocol to bring projects closer together and facilitate cross-chain communication. It’s one of the biggest problems there is in blockchain today, frankly. In order for Web3 to truly become what it aspires to be a true interconnected web must emerge.
Beyond that, Cosmos remains focused on a modular app development framework that could make improve app development. I think this project is poised to be successful, and if that’s the case, should have big upside from here.
Arbitrum (ARB-USD)
Arbitrum (ARB-USD) continues to have strong potential, because Ethereum (ETH-USD) Layer-2 scaling protocols continue to be necessary. Ethereum continues to be slow and inefficient, which means Arbitrum continues to have value.
Ethereum transaction fees are higher than they were a year ago. Indeed, the network’s switch to a Proof-of-Stake mechanism (POS) hasn’t lowered transaction fees. Thus, Layer-2 solutions are every bit as important now as they were years ago. Arbitrum offers higher throughput and lower fees, wich means users will prefer to transact using Arbitrum over Ethereum, at least for the time being.
Further, Arbitrum plans to offer a Layer-3 solution called Orbit this year. That means Arbitrum is building a network on top of its Layer-2 solution that is itself built on top of another network. That launch promises to allow the deployment of programs written in popular programming languages. If this launch goes as planned, Arbitrum can separate itself from other competing layer-2 networks, and further grow its per-token price.
Stellar (XLM-USD)
Utility is the main selling point of Stellar (XLM-USD). If there’s one concept I hope to impart to readers, it’s that Stellar creates value for its end users. It remains difficult to discern which crypto and blockchain protocols have real staying power, but those projects that focus on utility have the greatest chances of survival and big gains over time.
Stellar facilitates cross-border transactions primarily at the individual level rather than the institutional level. There’s an inherent strength to this business model that shouldn’t be overlooked. Person-to-person transactions are already popular through Cash App and Zelle, as well as other apps. If you can remove the institutional middleman, you can lower the cost of transacting.
It’s fair to assume that there’s significant global competition to build the most attractive blockchain network that will connect the greatest number of individuals from all corners of the globe. Stellar could win that race, and the rewards to investors could be very great. So much new value will be created if we can all easily trade with a merchant in some far-flung place. We aren’t there yet, and there is always more connectivity to be built, but that’s what makes Stellar an intriguing bet at these levels.
Injective (INJ-USD)
Injective Protocol (INJ) cryptocurrency coin symbol. Blockchain technology. INJ in bubble
Injective (INJ-USD) is one of the blockchain projects focused on improving traditional finance directly. Its core purpose is the advancement of smart contracts functionality within the context of financial markets.
There is a lot of hype behind the idea of smart contract programmability and its utility in executing complex transactions with near-instantaneous results. You program a smart contract to execute when a certain set of conditions are met, and then it is executed faster than most existing networks. This concept has created a lot of interest around Injective and other projects looking to solve similar problems.
In short, there’s a lot of money to be made in financial markets. Over time, I think there’s likely to be a lot more money made through financial markets as smart contract functionality becomes more commonplace across the industry.
If Injective can separate itself from the pack, and truly disrupt this age-old sector, the potential gains with this project are huge. Of course, there’s risk, and there are likely only going to be a few winners who emerge in the Web3 race. But I think Injective could be one of them.
Compound (COMP-USD)
Compound (COMP-USD) is powerful because it allows users to earn interest on their respective cryptocurrencies. Say, for example, you own 100 Bitcoin. Through Compound, you can receive interest on those Bitcoin by depositing them into Compound’s protocol. Users who deposit Bitcoin receive cBTC for your their holdings, which are redeemable for one BTC when funds are withdrawn.
The other thing that is very interesting about Compound is that it has adapted a great business model to the crypto space. It offers secured lending of up to 75% of the value of a collateralized asset. This isn’t great for borrowers, as they can lose their assets if they don’t maintain certain thresholds. But it is a great business for market makers, given that the collateral is always more valuable than the loan.
Compound wins if you default, and they win through interest received if you don’t. This project is popular, seeing robust user growth, which is a testament to its business model.
On the date of publication, Alex Sirois 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.
