2024 continues to be a great year for crypto enthusiasts. Bitcoin has registered seven green months in a row and is aiming to do one better in April – its halving month. The current pullback and consolidation is likely a healthy flush out needed to push for the next leg up.
Ethereum, Solana and other top altcoins have registered considerable gains but are still off their all-time highs of 2021 whereas Bitcoin has registered new highs this year.
To maximize your crypto portfolio returns, along with Bitcoin, Ethereum and Solana, it is prudent to allocate good share to emerging and upcoming narratives that will drive value in the ecosystem.
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In our last article, we covered AI, DePin and other narratives. Today, we will cover Real World Assets (RWAs), the Solana ecosystem and AI enablers. 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.
Real World Assets (RWAs) – PENDLE and RIO (medium risk, considerable returns)
RWAs are an emerging use case of blockchain tech that can act as the bridge between the traditional world and the decentralized world. RWA tokens represent various things like stocks, bonds and real estate which can be traded on smart contract enabled blockchains such as Ethereum. Stablecoins are also a part of the RWA category. Key risk in this category is the impact of regulations in various markets that can delay its adoption.
Pendle (PENDLE) is a DeFi platform that offers its users yields in the form of tradable tokens. Pendle’s new RWA product uses MakerDAO’s Boosted Dai Savings (sDAI) and Flux Finance’s fUSDC stablecoin - both generate yields from traditional finance sectors. It has an undisclosed investment by Binance and a grant from Arbitrum. With a market cap of $1.1 billion, PENDLE can potentially do a 6-8x over the next two years.
Realio network (RIO) is an interoperable Layer-1 multi-chain Web3 ecosystem focused on the issuance and management of digitally native real-world assets (RWA). Essentially, RIO allows for the creation of new assets in a secure decentralized process. RIO is currently up 180% on a monthly basis. With a fully diluted market cap of $180 million, RIO can do a 10-12x potentially this bull run.
The Solana ecosystem – JUP, WIF (higher risk, good returns)
The Solana ecosystem has been raging fire in the last five months thanks to a memecoin frenzy aided by significant surges in trading volume. This narrative can continue to run for months. Key risk can be the emergence of another blockchain that drives memecoin trading like BASE.
Jupiter (JUP) is a liquidity aggregator for Solana much like Uniswap for Ethereum. Jupiter offers a range of tokens and best route discovery between any token pair. Jupiter aims to provide the most friendly UX and DCA tools for users. JUP, launched in March 2024, is already up 150% on the monthly. With a $2 billion market cap, JUP can potentially do a 5-8x over the next two years.
Dogwifhat (WIF), a memecoin on Solana, has managed to attract new retail users into the popular meme coin space on Solana. WIF can continue to rally well if Solana’s memecoin ecosystem thrives and has a potential to do 5-8x over two years.
AI enablers – NEAR, BCUT (higher risk, good returns)
Continuing the AI narrative, we have identified two assets that aid in the growth of AI.
Near Protocol (NEAR) is a Layer 1 blockchain built to be simple, secure and scalable. AI is one of the core verticals for the NEAR ecosystem - from transforming governance and business operations with AI agents to provable provenance for data and content, AI is the core growth engine. Near is backed by a16z and Coinbase and has potential to do a 3-5x in the next 24 months.
Bitscrunch (BCUT) is a decentralized enriched data network which uses AI to detect malicious activities in NFT and other transactions. Backed by Coinbase and with an Indian founder, BitsCrunch aims to provide a stable and reliable experience in the digital asset markets (NFT). BCUT has just launched on international and Indian exchanges and has great potential for a significant return over 12 months.
The OGs – BTC, ETH and SOL (lowest risk, decent returns)
When we make a list of crypto projects to invest in, it’s difficult to discount the impact and appeal of Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). They are proven assets that drive the entry of new investors in the space (both institutional and retail). The returns will be less significant compared to other assets (3-6x) but still they are relatively risk-free.
(The author is CEO, 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)
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
