These cryptos could deliver outsized returns in the next uptrend of this bull market
Bitcoin (BTC USD) burst into tears again. The world's largest cryptocurrency has surged in recent weeks and recently came within a whisker of breaking its previous 2021 high of $69,000. Now that a new bull market for Bitcoin is firmly underway, investors are increasingly turning their attention to other projects that have the potential to reach new all-time highs during this rally.
Importantly, Bitcoin's gains often precede a broader rally in the crypto market known as an “alt season.” Once Bitcoin peaks, investors tend to invest in other cryptocurrencies that have more scope. That's why now could be a good time to get ahead of the curve and identify some altcoins with breakout potential. Here are three projects to check out now.
Beldex (BDX-USD)
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Beldex (BDX-USD) is building an ecosystem of privacy-preserving applications, including encrypted messaging, VPN, and web browsing. This anonymity-focused project targets a growing cohort of crypto users affected by surveillance and censorship. Beldex uses a modified version of Moneros (XMR USD) proven Cryptonote protocol with over 2000 validators to enable confidential transactions. Although privacy is a hot topic amid tighter regulations, Beldex still has a modest market cap of $250 million. This indicates significant growth as demand for anonymity solutions increases.
Recent financing deals confirm this bullish thesis. Beldex secured a $25 million investment from Web 3.0 backer DWF Labs in early 2023 to expand its privacy research, development and marketing. This team also raised $3 million each from Block Alpha and Alpha Token Capital to advance features such as EVM integration and private dApps.
Additionally, Beldex is expanding its ecosystem by launching BNS (Beldex Name Service), a decentralized domain name system built on the Beldex chain. The BNS ensures censorship-resistant and privacy-focused domain registrations and fits seamlessly into Beldex's commitment to anonymity. This addition enables the network to provide a comprehensive suite of privacy-preserving applications.
As demand for decentralized domain name systems grows, Beldex's inclusion of BNS adds another layer of appeal to its ecosystem and may contribute to the expected breakthrough in the upcoming alt season. Influential investors supporting Beldex could also see above-average returns. I believe Beldex is poised for a breakthrough once Altseason comes into play.
Alephium (ALPH-USD)
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As decentralized finance continues to gain traction, one area that hasn't received as much attention is scalability and efficiency. Many existing chains like ether (ETH-USD) face congestion issues that result in high charges and prevent certain applications from running smoothly. That's where Alephius (ALPH-USD) enter the game.
Alephium is a sharded L1 blockchain that offers scalability, security and energy efficiency, tailored for DeFi and dApps. It uses a unique stateful UTXO model that matches the programmability of Ethereum's account model while increasing security. However, what sets Alephium apart is its novel Proof-of-Less-Work (PoLW) consensus, which dynamically calibrates the network's mining difficulty to reduce energy consumption compared to Bitcoin.
Alephium has taken a bit of a breather after rising significantly over the past few months. This token has risen from just 36 cents in mid-November last year to nearly $4 when it peaked last month. However, I believe that new highs are likely to occur in the future as this cryptocurrency offers some of the most interesting use cases and utility on the market. It is also strongly associated with When (CAS USD), which has been going parabolic recently.
If the bull market continues on its current trajectory, I believe Alephium could reach a $1 billion market cap, but it is important to remember that small-cap crypto projects are not surefire bets. You should only invest your fun money in these projects, with the same consideration applying to projects like Alephium.
iExec RLC (RLC-USD)
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iExec RLC (RLC USD) is a distributed cloud infrastructure crypto project designed for high-performance computing. This project pools underutilized computing resources across the Internet. iExec allows users to leverage spare computing power to handle complex parallel processing tasks.
By paying resource providers in RLC tokens, the project has built a decentralized market around cloud computing, aiming to disrupt centralized incumbents like AWS and Azure. With cloud spending topping half a trillion dollars and growing rapidly, the concept of iExec capturing even a fraction of that market could generate enormous growth.
The RLC token has doubled since I started covering it and I believe it can rise significantly further in the coming months. Cryptocurrencies that deal with data, AI, and computing in general are likely to see significant gains in the coming months as the AI craze spills over into the cryptocurrency world.
At the time of publication, Omor Ibne Ehsan did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publication policies.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor focused on growth and cyclical stocks with strong fundamentals, value and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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