Cryptocurrency, as an asset class, is coming back from the dead. These cryptos emerging from the cellar have 3-bagger potential.
From an extended crypto winter to regulatory headwinds, cryptocurrency investors have seen the worst of it. Multiple scams in the industry haven't helped either. There is finally light at the end of the tunnel.
Bitcoin (BTC-USD) has been trending higher and there has been some action in the altcoin space. Judging from the previous bull market, the good times for crypto assets have just begun. There are potential 3-bagger cryptocurrencies available for purchase with an investment period of 12 months.
There is no doubt that the risks of exposure to cryptocurrencies are high. It's not just a penny or a micro-cap stock. However, in the last bull market, several altcoins recovered 10 times or 20 times in the blink of an eye. Therefore, some level of investment in this asset class makes sense.
In addition, in the field of cryptocurrency, there are also relatively stable projects. My focus is on these ideas that are likely to soar this year. I have lowered my expectations and it seems likely that a portfolio of these digital assets will deliver triple returns.
Let’s talk about the bullish case.
Bitcoin (BTC)
From the current level of $45,000, I believe Bitcoin could triple by the end of the year. Judging from previous bull market rallies, the cryptocurrency’s goals are not high. This is especially true at a time of positive tailwinds in the cryptocurrency space.
First, the U.S. Securities and Exchange Commission “approved the listing and trading of a batch of spot Bitcoin exchange-traded product (ETP) shares.” U.S. Bitcoin ETF sees strong first-day trading volume at $4.6 billion. This could help Bitcoin gain wider acceptance as an investment, and as demand increases, Bitcoin could soar.
Additionally, the Bitcoin halving is due this year. In all previous halving events, cryptocurrencies have seen strong rallies. With positive market sentiment, I believe this event will translate into a strong rally.
It must be added that global central banks may cut interest rates multiple times in 2024. With the implementation of expansionary monetary policy, risk asset classes are bound to see more speculation. This will be positive for Bitcoin.
Zilica (ZIL)
Zilliqa (ZIL-USD) is one of my long-time favorite cryptocurrencies. However, ZIL coin has not participated in the current rally and has remained flat over the past 12 months. However, I believe the coin is about to surge higher and a triple return may sound conservative once the uptrend begins.
All in all, Zilliqa is the world’s first sharding-based blockchain. In this concept, “transactions are divided into smaller groups and divided among miners for parallel transaction verification.” Transactions are faster and cost-effective compared to Bitcoin or Ethereum (ETH-USD) significantly reduced.
Notably, in September 2023, Zilliqa relaunched the Metaverse as a Service. When first launched in 2022, ZIL coin has already quadrupled. I believe that in the current bull market, entering the metaverse space may pay off. I also like that Zilliqa has attractive staking rewards. Currently, the annual interest rate is an attractive 13.22%, with 30.75% of the circulating supply collateralized.
KuCoin(KCS)
KuCoin (KCS-USD) is another potential multi-coin currently trading at $10.4. Notably, KCS hit an all-time high of $29 in December 2021. I believe these highs will be retested in the current bull market.
Overall, KuCoin is the eighth largest centralized exchange in the world in terms of trading volume. Now is a good time to consider exposure to centralized exchanges, as cryptocurrency trading volumes will continue to increase in the coming quarters. Once altcoins gain full steam, centralized and decentralized exchanges will mint coins.
Currently, KuCoin has covered more than 200 countries or regions and has 27 million users. Additionally, the exchange has over 1,300 trading pairs (750 listed tokens). KuCoin also claims to have stable liquidity, with a reserve ratio of over 100%. KuCoin has a huge addressable market and a large number of listed altcoins from which it is poised to benefit.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in the securities mentioned in this article.
