While the rally of Bitcoin (BTC-USD) and the broader crypto market is well underway (and far from over, in my opinion), there are some Web3 cryptos that every investor should have on their watchlist.
Web3, the idea of a decentralized internet built on blockchain technology, has faced numerous challenges and setbacks. However, the potential for disruption and innovation in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs) and decentralized applications (dApps) remains significant.
Some people remain skeptical of their long-term future, citing that these technologies have not made significant changes to society, and their outlooks are uncertain. My view is if investors wait for Web3’s impact to be painfully obvious, they will miss out on some substantial gains in their portfolio.
So, here are three Web3 cryptos to buy that serve as a reminder to the market that Web3 is coming and here to stay, regardless of the short-term headwinds.
Filecoin (FIL-USD)
Filecoin (FIL-USD) is a decentralized storage network designed to store humanity’s most important information.
FIL is a great example of a Web3 crypto with a bright future. It’s considered a Web3 project because it allows people to connect directly to each other and share storage space without going through a central entity. To incentivize this transaction, the protocol pays out in FIL cryptocurrency tokens.
Filecoin’s 2024 plans focus on leveraging the groundwork laid in 2023, with native improvements to storage markets, enhanced retrieval speeds and the expansion of its use cases via the Filecoin Virtual Machine (FVM) and Interplanetary Consensus (IPC).
A big part of the Web3 ethos is moving away from the tech giants in the Magnificent Seven and regaining user control. Projects then like FIL, which are thriving, remind us that this movement is growing in prominence, even as companies like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Meta Platforms (NASDAQ:META) and others continue to play a stronger role in our lives.
Ethereum (ETH-USD)
Ethereum (ETH-USD) is perhaps the most well-known Web3 crypto for investors to buy. Along with Bitcoin, it is a stable asset in many investor portfolios. It’s also one of the most important altcoins for investors to be aware of when discussing Web3’s market potential.
Ethereum was one of the pioneering platforms to enable smart contracts and decentralized applications. It now hosts a significant portion of the total value locked in DeFi protocols, which is expected to grow at a CAGR of 46% globally from 2023 to 2030.
There are some good tailwinds on the horizon, making ETH a great reminder of Web3’s importance in the investment sphere. These include enhancements to its gas limit and significant protocol upgrades like EIP-1559, which aims to make ETH more deflationary by burning transaction fees, potentially increasing its value over time.
For the bull run this year, price projections range from moderate increases to more bullish scenarios where Ethereum could reach or exceed $5,000.
Basic Attention Token (BAT-USD)
Basic Attention Token (BAT-USD) is one of my favorite Web3 cryptos. It’s one of the very few projects that managed to find an actionable use case for its tokens through its social tipping apps and integration into the Brave browser. The latter allows users to earn BAT via a compensated method for viewing advertisements.
BAT’s unique position in the digital advertising space and its ongoing technical developments offer significant growth potential. It also shows us how Web3 can open up pioneering use cases for tokens for both advertisers and cryptos that can be mutually beneficial instead of mostly at the expense of the frustrated user.
Looking ahead, the team is looking to push the needle even further. Brave is working on a decentralized exchange aggregator that will offer token swaps with advantages for BAT users. That includes discounts for using BAT to pay transaction fees and for those holding BAT balances.
With a market cap of just $534 million at the time of writing, it also has the potential to soar in value in the near future.
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
