The recent market movements present investors an exciting opportunity to position themselves in promising crypto assets.
Today, we identify these potential crypto gems across various categories that could yield favourable returns in the coming months. As always, the crypto market is dynamic and inherently volatile; therefore, conducting your own thorough research and understanding the associated risks is paramount before making investment decisions.
Crypto Tracker
DeFi and AI – HYPE, ENA and VIRTUAL (Considerable Risk, High Returns)
Hyperliquid (HYPE) operates on its own Layer-1 blockchain, specifically designed to enhance the efficiency DeFi applications using a custom consensus algorithm called HyperBFT. With nearly 500,000 users with $1.6 trillion in trade volume, Hyperliquid is gaining traction in the DeFi space. Its token, HYPE, has outperformed the altcoin market this year and is trading around $40 a token. With a $13 billion market cap currently, HYPE can do a 3-5x this year.Ethena (ENA) is a blockchain-based protocol on Ethereum designed to create a decentralized, crypto-native stablecoin called USDe. It is backed by VC’s such as DragonFly capital and Binance labs with a partnership with World Liberty Financial (WLFI), backed by the Trump family. USDe has solidified its position as a top-tier stablecoin reaching a market cap of nearly $6 billion. Ethena’s governance token, ENA, incentivizes community participation through staking rewards and airdrops. With a market cap of $1.7 billion currently, ENA can do a 3-5x this year potentially.
Virtuals Protocol (VIRTUAL) is a decentralized platform that enables the creation, co-ownership, and monetization of AI agents, particularly within gaming and entertainment sectors. Launched in 2024 on Ethereum’s Layer-2 Base, it allows users to develop AI agents without requiring technical expertise. With a current market cap of $1 billion, VIRTUAL has potential to do a 4-6x this year.
Layer 1 and 2 – ARB and SUI (Medium Risk, Good Returns)
Arbitrum (ARB) is an Ethereum layer-2 scaling solution. It uses optimistic rollups to achieve its goal of improving speed, scalability and cost-efficiency on Ethereum. Arbitrum benefits from the security and compatibility of Ethereum. Arbitrum has partnered with Robinhood to launch tokenized US stocks and ETFs for EU customers on Arbitrum One, with plans for a Robinhood Layer 2 blockchain using Arbitrum’s Orbit stack. This sets the stage for potential growth in ARB which is currently at a market cap of $1.65 billion. ARB can potentially do a 5-6x this year.Sui (SUI) is often touted as a challenger to Solana. It is a layer-1 blockchain founded by a team of developers who earlier worked together in Meta. It aims to cater to the next billion users in Web3 and is already the third-largest non-EVM layer 1 chain in terms of TVL. SUI, currently with a $10 billion market cap, can do a 4-6x this year.
Memecoin of the month – BONK (High Risk, High Returns)
Memecoins have struggled since January after the hype around TRUMP coin. However, we highlight the potential of BONK which has had organic growth backed by the Solana community. The launch of bonk.fun, a memecoin launchpad, has added to the allure of the coin.
Though the risks are high, there is a considerable merit to allocate a minor share of portfolio in memecoins.
The OG – BTC, ETH and SOL (Lowest Risk, Decent Returns)
It is prudent to pivot a majority of your crypto portfolio to the safest assets – Bitcoin (BTC) primarily, followed by Ethereum (ETH) and Solana (SOL). They are proven to build adoption by new investors in the space and drive the narrative and volume in crypto.
(Author of the article is Vikram Subburaj, CEO of Giottus Crypto Platform
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
