2023 has been overall kind to crypto investors. Bitcoin (BTC) has led the surge with a yearly gain of 154%. In doing so, it has surpassed traditional markets like Nasdaq (45%), BSE Sensex (18%), and Gold (12%).

Amidst the continuous evolution of blockchain technology and its burgeoning acceptance worldwide, a cohort of digital assets has emerged as frontrunners, poised for significant growth and transformation in 2024. We list the ones that have caught our eye. From layer 2 solutions to decentralized protocols facilitating cross-chain compatibility and gaming ecosystems, these assets showcase diverse opportunities for investors.

While we do the crystal gazing, we encourage investors to understand the risks and growth potential associated with each asset and do their independent analysis.

Layer 2 solutions – MATIC, OP, and ARB (medium risk, considerable returns)

Layer 2 solutions on Ethereum drive high-volume trade on the blockchain while reducing fees significantly. They scale the base blockchain and its transaction throughput and build an ecosystem that is useable by millions. The three frontrunners in this space are Polygon (MATIC), Optimism (OP) and Arbitrum (ARB).
Polygon was a fan-favourite from the previous cycle and did exceptionally well. Naturally, it will likely have a modest growth outlook over the next two years (3-6x) but it has an established ecosystem.

Optimism and Arbitrum are the new kids on the block and have the potential to do well (6-10x over two years) if adoption kicks on.

Decentralization – ATOM and RUNE (higher risk, good returns)

Projects that work on data transfers, asset migration and communication between various blockchains are key to successful real-world adoption of blockchain tech. While there are many promising ones in this space, we pick some potential winners.

Cosmos (ATOM) operates as an “Internet of Blockchains,” providing interoperability among various blockchain projects. As an ecosystem with numerous projects currently in development, ATOM holds the potential to bridge the gap between disparate blockchains. ATOM is primed well for targeting its all-time high at $45 (4x current levels) and go beyond this cycle.

Thorchain (RUNE) operates as a decentralized protocol enabling the seamless transfer of assets across multiple networks. As markets thrive on interoperability, Thorchain’s potential in unlocking and mobilizing previously inaccessible liquidity pools makes it a captivating project. RUNE can potentially do a 6-8x this cycle (next two years).

Gaming and NFTs – IMX and BLUR (high risk, disproportionate returns)

Gaming and NFTs are volatile space for projects – many have a limited shelf life. However, the space has great potential for its use of blockchain tech. The aim here is to pick out projects which can be the base infrastructure and can grow independently of performances of individual projects.

Immutable X (IMX) calls itself the Layer 2 for NFTs and blockchain gaming. It has already built a significant presence in the gaming sphere and boasts extensive partnerships particularly within Polygon’s ecosystem. It is still early to call potential returns on IMX – a lot depends on gaming adoption.

Blur (BLUR) is a marketplace for NFT trading and overtook Opensea in trade volume within months of its launch. BLUR can do a 10x this cycle from current levels if NFTs become a rage again. However, there is always a risk of another project taking volume away.

The ever dependable – BTC, ETH and SOL (lower risk, moderate returns)

When we do a list of crypto projects to invest in, it’s difficult to discount the impact and appeal of Bitcoin (BTC) and Ethereum (ETH). They are proven assets that drive the entry of new investors in the space (both institutional and retail). With Bitcoin spot ETF likely to be actioned in the US in 2024 and the halving event in April, Bitcoin will continue to remain the torchbearer of crypto adoption globally. BTC can do a 2-3x in the next two years with a relatively lower risk profile.

Ethereum (ETH) is a strong #2 to Bitcoin and is widely loved by all. ETH can do a 3-5x in the next two years.

Solana (SOL) is performing like how Ethereum did in the previous cycle. It has great institutional interest and is gaining on a strong ecosystem. SOL can do a 5-8x this cycle and become the definitive #3 among crypto assets.

(The author is CEO of Giottus)

(You can now subscribe to our ETMarkets WhatsApp channel)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, Budget 2024 News on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link