After a prolonged crypto winter, green shoots are emerging again in the digital asset market. Bitcoin (BTC-USD) has rallied more than 100% year-to-date, and optimism is creeping back into the minds of investors. Specifically, many now believe that a new bull market could be around the corner. The thinking is that investors who ride this wave early may be first in line to receive multi-bagger gains during the next leg of this incredible bull market rally.
The crypto ecosystem is constantly evolving, with new disruptive projects continually entering the fray. While stalwarts like Bitcoin and Ethereum (ETH-USD) command the spotlight, the next round of massive gains are likely to come from younger, more agile crypto networks. Admittedly, these projects are risky, but identifying these potential rocket ships early allows you to secure positions before they catch fire.
Indeed, investing in altcoins requires a high risk tolerance. The crypto market remains extremely volatile, and these tokens are even more volatile than their larger-cap peers. However, those able to stomach the swings could see substantial rewards over the long-term. With that said, here are three cryptos to consider right now.
Kaspa (KAS-USD)
Kaspa (KAS-USD) is a blockchain project which aims to achieve unprecedented scalability. Its novel architecture combining aspects of DAGs (directed acyclic graphs) and traditional blockchains allows for astonishing transaction throughput. By structuring the ledger as an asynchronous DAG, transactions can be processed in parallel rather than sequentially.
This is accomplished through Kaspa’s GHOSTDAG protocol. Unlike conventional blockchains, in which orphan blocks are created concurrently, GHOSTDAG enables these blocks to coexist by ordering them during consensus. Kaspa refers to its ledger as a blockDAG since it maintains blockchain characteristics. Through simulations, the network has demonstrated the potential to reach around 35,000 transactions per second.
However, I’m wary of taking advertised throughput numbers at face value. Actually, realizing performance gains at scale on decentralized networks is much easier said than done. Kaspa is still in the very early stages of development after its mainnet launch. Substantial testing and stress loading will be needed to validate its bold claims around scalability.
Additionally, innovating at the base layer comes with tradeoffs. By utilizing a DAG structure and novel consensus mechanism, Kaspa diverges from established security models. Ensuring robust decentralization and immunity to vulnerabilities will be an ongoing challenge as the network evolves. However, if Kaspa manages to deliver on its goals, it could easily be a multi-bagger investment for those brave enough to step in here.
Radix (XRD-USD)
I believe Radix (XRD-USD) is poised to ignite a revolution in decentralized finance (DeFi) with the recent launch of smart contracts on its network. After years of development, Radix has created a unique full-stack solution that could overcome the limitations of existing blockchains and unlock the full potential of Web 3.0.
While Radix may not be a household name yet, it offers an innovative approach that deserves more attention. The team behind Radix took a clean-slate approach, building a brand new network and ecosystem from the ground up to be scalable, secure, and user-friendly.
At the core of Radix is Cerberus, a groundbreaking consensus algorithm that maintains the integrity of the ledger while enabling linear scalability. This allows Radix to handle exponentially more transactions than existing chains as demand grows. Radix also utilizes a novel programming language called Scrypto that makes coding DeFi apps simpler and safer.
The user experience is just as critical, and Radix has addressed this well, developing an intuitive wallet and account system to make DeFi accessible for everyone. With these technological breakthroughs in place, I believe the Radix ecosystem could be poised for explosive growth.
Over 100 projects are already building on Radix, with major DeFi and NFT players like Equilibrium and Physicists launching applications soon. As more developers tap into the capabilities of Radix, it could unleash a wave of innovation in its ecosystem.
The launch of smart contracts could be the ignition point for growth, turning Radix’s potential into reality. While the market has yet to fully recognize Radix’s capabilities, it likely won’t stay under the radar for long. As its ecosystem blossoms, Radix may see its valuation swell in proportion to the value it creates via its ecosystem.
Ator Protocol (ATOR-USD)
Ator Protocol’s (ATOR-USD) focus on empowering privacy through providing crypto incentives is an interesting approach. The project uses its native token to reward contributions to the Tor network, which aims to expand its reach and strengthen privacy-preserving infrastructure. The project’s router hotspot and optimized relay node offer easier access points to the Tor network for regular users.
Will this revolutionize Tor? No. The protocol is still in the very early stages, with limited adoption so far. Tor has thrived for years as an open-source volunteer effort, so the incremental value of crypto incentives is debatable. Plus, like many crypto projects, user counts and activity are quite minimal. Realizing the lofty goals will require years of steady development and adoption.
Still, I believe that if the project enters the spotlight, more Tor users will adopt it, and the price of its underlying token will appreciate substantially. Whether that will ever happen is hard to say, but I think this project is worth the gamble at these levels.
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 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.
