Opinion pieces are based on the author's personal opinion, and they do not constitute investment advice, financial advice, or trading advice. Securities.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Conduct your own due diligence and consult a financial advisor before making any investment decisions.
The cryptocurrency industry is seeing constant development, with new coins coming out all the time. At this point, it features more than 16,400 live projects, and while many of them will die out in time, there are also quite a few of those that stand to become huge gainers in the future. Your task as an investor is to separate the good from the sea of bad and find the coins that have true potential.
To help you out, we have created a list with our own recommendations. You are, of course, is no obligation to go for any of these coins. However, if you research them yourself and come to the same conclusions as we did, do consider giving them a shot.
1. Solana (SOL)
The first on our list is Solana — a popular, open-source project that is highly functional, and aimed at revolutionizing the DeFi sector. The project’s goal is to function as a development platform for DeFi, and as such, it has seen great amounts of popularity, especially over the last year, as developers started looking for alternatives to Ethereum.
Ethereum’s inability to scale has led to a massive increase in transaction fees, which are no longer practical, or even tolerable. So, when the devs turned to other projects to look for a more scalable, faster, cheaper platform, Solana was there to greet them. Ever since then, the project’s ecosystem has started growing rapidly, attracting developers, projects, and DeFi protocol users alike.
Solana’s processing time is incredibly short, and while it is only one of several blockchains that are now acting as Ethereum’s major competitors, it is easily among the best ones out there. As such, its token SOL stands to gain a lot more useful as its community and ecosystem continue to expand.
To learn more about this token visit our Investing in Solana guide.
2. Avalanche (AVAX)
Right alongside Solana is also Avalanche — another development platform that claims to be the fastest smart contracts platform in the industry. Avalanche is blazingly fast, very eco-friendly — which is something that Ethereum will not be until it fully switches to Ethereum 2.0 — and all transactions can be conducted at a very low cost.
Any and all smart contract-enabled dApps that were ever deployed on Avalanche’s blockchain have outperformed Ethereum-based dApps, and even mos other applications on other chains.
Since the launch of its mainnet, Avalanche has grown to secure hundreds of individual projects, and dozens of millions of AVAX was burned during the last year and a half. All of this has already started pushing its token’s price up, and but there is a lot more to go, and so if you are looking for a project with excellent potential, Avalanche is definitely worth a second glance.
To learn more about this token visit our Investing in Avalanche guide.
3. Axie Infinity (AXS)
Next up, we have Axie Infinity. This is a blockchain-based metaverse game that uses NFTs. Axie Infinity is easily the biggest, most popular, and most developed blockchain game out there right now. Inspired by games like Pokemon, Axie came up with a game that allows players to obtain monsters that can then be used in battles in order to win rewards.
The project employs a play-to-earn model to allow its users to make money while engaging in their favorite pastime — gaming. Its monsters all come in the form of NFTs, which can be bought, sold, traded, or minted. Players can then breed their monsters in order to create new ones, and strengthen them by adding over 500 different body parts that belong to beasts, aquatic monsters, bugs, plants, and more.
With all monsters being available in the form of NFTs, users can easily take them out of the game and sell them on any 3rd-party NFT marketplace, or buy new ones from others and introduce them into the game. And, once they engage in battle with other players, they can win AXS tokens that can be used for purchasing upgrades, new monsters, or simply withdrawn and exchanged for other crypto or fiat currencies.
To learn more about this token visit our Investing in Axie Infinity guide.
4. Polkadot (DOT)
In the fourth spot, we have Polkadot — a project whose goal was, and still is, to solve the problems of scalability and interoperability in the crypto industry. Once again, this is a project inspired by Ethereum, or rather the problems that Ethereum is facing and finding itself unable to solve.
With the ability to only process 13 transactions per second, and being one of the busiest chains at the same time, Ethereum found itself constantly filled with unprocessed transactions that have to wait for long periods of time. The only way to get your transaction processed faster is to pay higher fees than others, which led to a huge average fee price.
Polkadot decided to address this by coming up with its own solution — parachains. These are parallel chains that run alongside its main chain, and take over a portion of the job that needs to be done. As such, each of its chains only has a small portion of work to do, and the main one doesn’t get overwhelmed with transactions.
Meanwhile, its sidechains also have the ability to connect to other blockchains, which means that Polkadot can be a key project in solving the problem of interoperability in crypto, by being the center of a web of connections that will tie other chains to it, and through it, to one another.
To learn more about this token visit our Investing in Polkadot guide.
5. Shiba Inu (SHIB)
Last, but not least, we have Shiba Inu. Shiba Inu is a memecoin, a project inspired by Dogecoin and its growing success. DOGE itself was invented 9 years ago as a joke cryptocurrency — a way to introduce some humor and positivity in the overly serious crypto industry that was threatening to take a much darker path. Nobody expected it to last, let alone to inspire a wave of similar memecoins, which are not meant to solve any crypto or real-world problem, but simply to act as joke cryptocurrencies.
SHIB was one of the first coins to see a launch inspired by the fact that DOGE did not only survive, but it also managed to thrive for years after it was expected to die and disappear from the crypto scene. On top of that, SHIB saw surging popularity last year that even allowed it to outperform DOGE in market cap, and therefore in rank.
These days, DOGE is once again on top, but SHIB has proven that it can outperform it once, and there is no reason why it wouldn’t happen again — perhaps even permanently. So, if you wish to be there if, or maybe when it happens, then consider buying some Shiba Inu tokens.
To learn more about this token visit our Investing in Shiba Inu guide.
Finding the right cryptocurrency to invest in often means understanding the hidden potential of the project before it blows up. That way, you can buy its coins before its price goes sky high, and once it finally happens — you will be the one profiting. In this guide, we have presented you with a list of the top 5 relatively new cryptos that we believe could see huge gains in the future. Whether that will be in a month, year or longer is impossible to say. But, their goals, technology, and approach to developing their projects do give us hope that these are the future stars of crypto.