3 High-Growth Cryptos Poised for a Major Breakout
As the crypto market rallies, the search for high-growth cryptos is on. Of course, the most popular names in this sector continue to be Bitcoin (BTC-USD), Ethereum (ETH-USD) and other mega-cap projects. That said, many other cryptocurrencies have been gaining traction of late.
As investors look to move up the risk spectrum to capture more of this move, some lesser-known high-growth cryptos may get more attention.
Given the thousands of digital assets that currently exist, it’s impossible to go through every project out there. However, I have a few cryptos with high growth potential on my watch list that I think investors may want to take a look at. In a bull market rally, these tokens could have some of the best upside potential.
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Solana (SOL-USD) is among the cryptos that I’ve remained bullish on. In the large-cap cryptocurrency world, I still think Solana has the highest growth potential — and also probably the highest risk profile — among its peers.
This Layer-1 blockchain network operates in a decentralized manner, allowing developers to provide decentralized applications (dApps) with scalable infrastructure. This definition bears a striking resemblance to that of Ethereum, which adds to Solana’s appeal as it poses a challenge to Ethereum’s dominant position in the cryptocurrency industry.
This cryptocurrency is one of the fastest blockchain technologies in the market, since it was designed to handle a staggering amount of operations per second. Its native cryptocurrency, SOL, has become increasingly popular thanks to its speedy transaction capabilities and minimal transaction charges — two areas that have proven challenging for Ethereum.
Similar to Ethereum, Solana offers cross-chain compatibility with other blockchains. Thus, Solana is anticipated to be a key player in potential cryptocurrency breakthroughs in banking, the economy and the community. Instead of searching for the next cryptocurrency that may generate quick profits, it is prudent to stick with SOL, which can potentially deliver substantial returns with less risk.
Introduced in 2019, Fantom (FTM-USD) is a smart contract Layer-1 blockchain platform I think is worth considering. Fantom utilizes a special proof-of-stake (PoS) consensus process termed Lachesis that makes use of an asynchronous Byzantine Fault Tolerant (aBFT) PoS protocol built on the directed acyclic network (DAG) engine.
That’s a word salad to say that Fantom’s proof-of-stake network allows for swift operations and short verification periods, perfect for decentralized applications requiring rapid and effective data transfer.
Fantom’s user growth and partnerships have complimented the project’s significant adoption among developers. Notable collaborations include partnerships with the Afghan government to aid in monitoring supply chains and with the University of Sydney to build low-energy programming toolchains.
After reaching its peak in January 2022 at $3.36, FTM’s price plummeted. It broke down through support at $0.20 to hit a low of $0.164 in November, losing 95% of its value. However, the trend has since shifted. The price of Fantom has been on an upward trajectory, nearly tripling from its lows.
The strong technical performance of Fantom, aligned with its fundamental strengths, could mean this crypto is poised for a continued breakout.
Maker DAO (MKR-USD)
MakerDAO (MKR-USD) is a rather unique high-growth crypto to consider. This stablecoin project is one that’s well-known for its Dai USD (DAI-USD) stablecoin.
The goal behind DAI is noteworthy. Maker has sought to create a decentralized stablecoin that retains its purchasing power. Given inflation concerns right now, that’s a worthwhile discussion.
However, with the recent banking crisis creating turmoil in the crypto markets, stablecoins such as USD Coin (USDC-USD) lost their peg to the dollar. Investors were simply too concerned about a run on the financial system and how it could potentially impact digital assets.
That said, MakerDAO has created a contingency plan to safeguard its flagship stablecoin. This action was taken to protect DAI from further exposure to any potential instability in the market.
Among the stablecoin projects out there with significant upside potential worth considering, Maker’s DAI could be the best of the bunch. Of course, significant risk still exists in this space. But Maker is one project I think is worth investigating further for those seeking growth.
On the date of publication, Chris MacDonald has a position in SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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