As Bitcoin (BTC-USD) has started to cool in recent weeks, many altcoins are just starting to catch fire. Investors tend to move profits from the major Web3 cryptos into higher potential plays as bull markets mature. There are tons of innovative Web 3.0 projects with vast upside that haven’t gotten their time in the spotlight yet. If you do your homework, buying into the right ones early could pay off big time.
I’ll highlight three lesser-known cryptos taking novel approaches to realizing the promise of Web 3.0. These projects have flown under the radar but have major catalysts on the horizon that could drive exponential growth. They obviously aren’t sure bets, but the potential upside more than justifies the risks if you invest responsibly. Let’s take a look!
Kaspa (KAS-USD)
I recommended Kaspa (KAS-USD) during its summer dip this year and believe you should consider buying during the current downturn, too. Kaspa has been one of the top performers this year and is now a top 50 coin. It uses the “GHOSTDAG” protocol to deliver exceptional performance compared to other Web 3.0 blockchains, and developers claim the protocol essentially solves the blockchain trilemma as it apparently does not sacrifice speed, security, or decentralization.
I definitely have high hopes for this blockchain, as it could see a sizable inflow of developers and users in the next crypto bull run once other Web 3.0 blockchains start to become congested. Once that happens, whether or not this new protocol can deal with a high volume of users will indeed be seen. Newcomers like Avalanche (AVAX-USD) and Solana (SOL-USD) have had huge problems dealing with a high volume of users, and if Kaspa proves itself, it could be a top 10 coin.
SmarDex (SDEX-USD)
SmarDex (SDEX-USD) offers a promising new decentralized exchange built for maximum capital efficiency. With a modest $89 million market cap, SDEX flies under the radar but packs seriously disruptive potential. As the DeFi space heats up, inferior DEXs with clunky interfaces and subpar yields will lose ground to superior competition. SmarDex aims straight for the jugular of leading DEX Uniswap (UNI-USD) with a slick platform optimized for yield generation.
The dilution here looks favorable for early adopters relative to other DeFi plays. SmarDex innovates a revolutionary open-source automated market maker, allowing users to profit from both impermanent loss reduction and impermanent gain generation. By some accounts, it already facilitates the most efficient swaps in crypto, occasionally even making you money on the exchange itself. The automated aggregator model appears poised to attract liquidity and volume during the next industry run-up.
Once word spreads in the yield-hungry DeFi community, SmarDex looks primed for a surge of capital inflows. Competitive staking opportunities should drive significant user adoption following the next altcoin rally. With market leadership for DEX interfaces and farming efficiency potentially within reach, 500%+ returns on a future $89 million coin seem plausible over the coming years. Of course, with nascent small caps, investing prudently is mandatory. But as a high-risk, high-reward DeFi pick, SDEX offers blockbuster upside for early birds willing to speculate here.
Radix (XRD-USD)
Radix (XRD-USD) is an off-the-radar layer-1 protocol tackling one of crypto’s greatest roadblocks – accessible mainstream application development. Legacy networks like Ethereum (ETH-USD) impose steep learning curves for coders, especially those from traditional Web 2.0 backgrounds. Radix looks to open the floodgates for web 2.0 developers to build decentralized apps easily, delivering intuitive tools that abstract away blockchain complexities.
Radix’s DeFi and dApp ecosystem has rapidly grown since launching smart contracts last year. Developers can also build quickly with Radix’s Scrypto language. Beyond development, Radix focuses intensely on normalized end-user experiences, starting from creating wallets in a more simple way. These branded wallets replace complicated seed phrases with familiar username/password authentication to onboard more crypto-curious users. Streamlining these initial touchpoints can spur further decentralized adoption among the mainstream audiences necessary for the next growth wave.
Partnerships also validate Radix’s budding network, and financial institutions have taken note – for example, Radix recently demonstrated core functionalities to an interested major bank’s blockchain division. All this for a sub-$500 million market cap seems very appealing to me.
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.
