The crypto market is known for its extreme volatility and the potential for permanent capital loss. However, it is also known for its ability to generate huge profits in a short period of time. The last crypto winter saw a significant cooling of the market Bitcoin (BTC USD) is down more than 73% from its highs, this winter is thawing. With this recovery, I believe there are significant opportunities for massive returns for select projects in the coming years.
History shows us that Bitcoin tends to undergo a correction before its halving events. These halvings halve the block rewards for miners, limiting new supply. The previous two halvings were followed by renewed bull runs that took Bitcoin to new highs. I expect something similar could play out in the next 6 to 12 months after the halving (expected later this week). This would likely trigger the next phase of the bull market for the crypto sector.
While Bitcoin itself remains an obvious buy here, pairing this token with select micro-cap altcoins could lead to outsized returns in the next bull cycle. Here are three micro-cap altcoins to consider in this context.
Serenity Shield (SERSH-USD)
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As I’ve been saying for more than a year, blockchain storage solutions may be on their way to mainstream adoption as users look for decentralized (and often cheaper) alternatives to traditional data storage companies. With 100% uptime and zero censorship risk, blockchain-based data storage holds enormous disruptive potential.
Serenity shield (SERSH-USD) offers crypto inheritance services while securing sensitive data through its patent-pending StrongBox DApp technology. Users can securely store and maintain access to digital assets, confidential information and other sensitive data. Should something happen to the owner, designated successors can inherit access. Inheritance is a key problem in the blockchain space, and Serenity Shield has a solution that aims to solve this problem.
With a current Market capitalization of around $2.9 millionI believe Serenity Shield still has significant upside potential.
Banano (BAN-USD)
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Even if it seems easy to dismiss banana (BAN USD) is just another meme coin and therefore worth a closer look. This project is based on Nanos (XNO-USD) directed acyclic graph architecture (DAG) that enables completely fee-free, near-instantaneous transactions. Users can earn Banano by providing computing resources for medical research through “folding”. The real-world utility and loyal fan base of this project could drive significant gains in the next altcoin run.
Bananano offers a quick and easy user experience that I think is perfect for driving adoption. And since there are no fees or taxes on transactions, user growth and engagement should continue to increase. If speculative sentiment turns optimistic again, meme coin mania could return in full force. Furthermore, if Nano takes off, it could take Bananano with it too. I believe this token’s upside potential far outweighs its downside risk.
Blue Kirby (KIRBY-USD)
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Blue Kirby (KIRBY USD) is a new meme coin on the Fantom (FTM USD) blockchain I noticed something that looked like a piracy operation of the original token. Following the redistribution of tokens to improve decentralization and security, Blue Kirby is now trading with a market cap of around $700,000. As a pure meme coin with no utility, this is one of the highest risk cryptos out there.
However, meme mania could lead to a surge in interest. Given the developers’ renewed involvement in the project, limited stock market availability, and microscopic market cap, KIRBY appears to be primed for a speculative frenzy. It doesn’t currently offer a technological edge, but outsized returns are possible if it attracts a loyal community again.
Fundamentals often take a back seat to hype and speculation, driving valuations higher. Thus, a small KIRBY position could offer huge upside potential. Of course, the losses could be just as big, so you should avoid KIRBY if you don’t like risk.
On small capitalization and low volume cryptocurrencies: InvestorPlace does not regularly publish commentary on cryptocurrencies whose market capitalization is less than $100 million or whose trading volume is less than $100,000. Because these “penny cryptos” are often a playground for fraudsters and market manipulators. If we publish a comment on a low-volume crypto that may be affected by our comment, we ask InvestorPlace.com writers to disclose this fact and warn readers of the risks.
Read more: How to avoid popular cryptocurrency scams
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.