The crypto bull run is in full swing, and we’ve seen many digital assets go parabolic alongside Bitcoin’s (BTC-USD) meteoric rise. However, some cryptos have failed to keep pace, languishing with lackluster gains. On the flip side, several promising altcoins seem poised for their own rise as the market shifts from Bitcoin dominance to a full-blown altcoin season.
It seems like Bitcoin is taking a breather before its next leg up, and this consolidation phase could provide the rocket fuel needed to propel select cryptocurrencies in red-hot sectors into the stratosphere.
Two of the hottest crypto sectors during this latest bull cycle have been artificial intelligence and layer-1 blockchain platforms. Snapping up promising but lesser-known projects in these areas, along with other quality altcoins in the Web 3.0 ecosystem, looks like a winning strategy.
Cryptocurrencies with relatively small market capitalizations can deliver outsized, multibagger returns in a short period when market conditions align. Here are three cryptos to look into:
Neon EVM (NEON-USD)
Neon EVM (NEON-USD) is a promising project based on Solana (SOL-USD) that deserves attention. This algorithm uses timestamps through Solana’s proof-of-history innovation to define the next block in Solana’s chain. Given the ultra-fast speed at which blocks are added to Solana’s blockchain, additional security levels are required to maintain integrity.
This is where the proof-of-history algorithm comes in — by timestamping each block, it enables the system to preserve security even at lightning speeds.
With Ethereum (ETH-USD) gas fees surging as high as $50 for NFTs and more than $30 for a simple ERC20 swap, many developers are shifting their attention to Solana — as excessive fees on Ethereum are simply unsustainable. Cumbersome layer-2 solutions are not the answer. Blockchains like Solana that offer cheap transactions are becoming very attractive for devs.
Neon EVM can ride the tailwinds of this developer momentum. However, stability issues have hampered Solana recently, with occasional outages still occurring.
While the frequency and severity of these incidents are declining, there is optimism that the Solana team will eradicate the problem in the coming months. Once stability is cemented, Neon EVM may become irresistible to developers seeking an affordable and reliable alternative to Ethereum.
At a mere $80.6 million market cap currently, Neon EVM could easily reach over $500 million in valuation or more if it gets sufficient spotlight. The pieces are falling into place, so this is one to watch closely.
Pyrin (PYI-USD)
Pyrin (PYI-USD) is another emerging crypto project that combines innovative technology with significant upside potential. This decentralized Kaspa (KAS-USD) fork integrates Blake3 with BlockDAG and GhostDAG, delivering scalable and instant transactions at a minimal cost. The team has also pioneered a groundbreaking proof-of-work algorithm called PAIW aimed at more efficient resource management.
Pyrin seeks to offer high throughput, low latency, security through ASIC resistance and built-in smart contract functionality — all secured by its cutting-edge proof-of-work.
Kaspa is a multibagger even after the recent comedown. A sizable upside in Kaspa if this bull run persists is still possbile. Moreover, projects like Alephium (ALPH-USD) are now capitalizing on similar blockDAG technology to Kaspa.
Pyrin follows in these footsteps, bringing fresh innovations like PAIW to the table. Launched in November 2023, it currently sports a modest $34.2 million market cap. But with the right catalysts, it can be envisioned that Pyrin could reach a market cap similar to Alephium. Of course, this is crypto, so investing in new projects always requires ample risk tolerance.
SubQuery Network (SQT-USD)
SubQuery Network (SQT-USD) aims to become the go-to data indexer that “supercharges” dApps across over 125 networks. The team claims its open data solution will bring powerful innovations to the RPC industry.
While the core utility has yet to be fully developed, those buying SQT now are financing the construction of this data node. As we’ve seen with projects like DevvE (DevvE-USD), investing in promised potential ahead of real utility can lead to painful dilution and selling pressure later on.
Still, with a tiny $19.2 million market cap, SubQuery could easily increase 10 times or more with sufficient hype. However, it is advisable to only invest spare capital given the unfinished state of the platform. If the data indexer works as envisioned once live, the project could succeed in a big way. But until then, you are investing in a promise.
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.
