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With the current bear market reaching its end, many crypto investors are building their portfolios with the aim of generating the biggest returns in the next bull run. To help investors, Coin Bureau recently shared their top crypto picks in a video uploaded to YouTube yesterday.
In the video, they broke down their list into 10 categories, as well as explained some of the challenges and opportunities associated with each category. This video comes after many altcoins printed lower lows on their charts for the past few months.
Solana killers
The first category of cryptos covered in the video is Solana killers. The market used to focus on projects that would potentially overtake Ethereum (ETH), however, it has become abundantly clear that the Ethereum blockchain is here to stay, according to Coin Bureau. Solana killers mentioned in the video included Sui (SUI), Aptos (APT), and Near Protocol (NEAR).
These 3 projects have the potential to overtake Solana provided the project is unable to survive the aftermath of the FTX collapse. Should Solana overcome the challenges that the recent FTX collapse has brought onto it, as well as maintain its lead against SUI, APT, and NEAR, then Coin Bureau believes that SOL will also be a crypto to watch in the next bull run.
Since ETH has established its dominant market presence, investors will look to Layer-1 projects such as the ones mentioned in this article, which could lead to more than 10x gains for long-term investors. On the other hand, Coin Bureau warned that increasing interest rates will reduce the amount of capital that will flow into speculative cryptos, which could diminish returns.
In addition, they believe that Solana killers could also be outperformed by Layer-2 projects that are being built on Ethereum (ETH), given ETH’s reputation in the crypto market. Should these projects garner the attention of investors, it could result in further diminished returns for projects trying to overthrow Solana.
Layer-2 projects built on Ethereum (ETH)
These are projects that are built on top of the Ethereum blockchain in an attempt to lower the network’s transaction fees as well as increase transaction speeds. In the video, Coin Bureau mentioned that these projects also come with the inherent security of the Ethereum network, which makes them an attractive option for decentralized applications.
Projects such as MetisDAO (METIS), Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) were all mentioned as candidates in this category. According to the video, there are more and more Layer-2 projects entering the market. Coin Bureau, therefore, warned that as more projects enter the market, the market cap competition between the projects will grow more intense.
Decentralized Storage
Projects included in the next category, decentralized storage, are Filecoin (FIL), Arweave (AR), and Akash Network (AKT). Coin Bureau shared that decentralized storage will be necessary for the future since many Layer-1 projects currently store data on centralized cloud servers. As these projects scale, centralized solutions may no longer be viable.
The one caveat for projects in this category, however, is that Layer-1 and Layer-2 projects may just start creating their own decentralized storage solutions. Should this happen, it will remove the need for 3rd party decentralized storage solutions. Secondly, decentralized storage solutions are a new concept and have not been thoroughly tested by the market yet.
Decentralized Identification
Projects in the decentralized identification category will play a critical part in unlocking the next wave of crypto and blockchain use cases, according to Coin Bureau. Projects such as Civic (CVC), Kleros (PNK), KILT Protocol (KILT), as well as Polygon (MATIC) who have developed their own identification solution, are the projects to keep an eye on in this category.
In the near future, it may become a regulatory requirement for users to have decentralized identities linked to their real-world identities before they can interact with DeFi products. Should this happen, it could result in cryptos in this category receiving a massive price pump.
Decentralized Finance
Projects in this category were created to replace institutions in the traditional financial system. Coin Bureau is bullish on this category of cryptos because they are the only projects, besides Ethereum (ETH), and Bitcoin (BTC), that generate fee revenues. A portion of these fees could go to governance participants, which will make them a more attractive investment as well.
Crypto projects mentioned for this category include Aave (AAVE), Lido DAO (LDO), and Uniswap (UNI). In terms of caveats, these projects face a large regulatory risk given that they aim to replace traditional centralized financial institutions. Furthermore, these projects are more prone to hacks and cyber attacks.
Interoperability Projects
The next category covered in the video is projects that enable high levels of interoperability, which is the ability to share resources across multiple blockchain networks. In addition, these projects also provide blockchain projects with a connection to real-world and real-time data.
Projects such as Chainlink (LINK), Flux (FLUX), Cosmos (ATOM), and Axelar (AXL) were discussed in the video. According to Coin Bureau, it is very unlikely that a single Layer-1 or Layer-2 project will be able to support decentralized applications that scale to a global level – making interoperability projects desirable.
The potential demand for interoperability projects is further increased by the fact that many crypto use cases will require interoperability. Despite this, Coin Bureau cautioned that interoperability projects will only be used if the global crypto adoption rate grows.
Decentralized Social Media
According to the video, decentralized social media projects such as LENS Platform (LENS) and Theta Network (THETA) could generate positive gains for investors in the long term. Social media users will slowly begin to use these decentralized social platforms as governments across the globe continuously try to censor the internet.
Coin Bureau did state, however, that the adoption of these projects will depend on how easy it is to use these platforms. There is also the risk of decentralized social media platforms falling victim to the same regulatory scrutiny as DeFi products.
Blockchain Gaming
Although much of the hype surrounding the Play-to-Earn space has subsided, Coin Bureau still mentioned 3 blockchain gaming projects that every investor should keep an eye on going into the next bull run. In the video, Axie Infinity (AXS), Gala (GALA), and Decentraland (MANA) were highlighted as some of the projects to watch.
In the video, Coin Bureau stated that blockchain games will be one of the main drivers for mass crypto adoption, as they will open up many great use cases in the future. Unfortunately, there is still some work that needs to be done by each project’s team since there is not yet a blockchain game that can support millions of users.
Wallets
Many users in the crypto space are unaware of the vital role that blockchain wallets play in the crypto space. This is why wallets are the next category mentioned in Coin Bureau’s video. Popular wallet solutions currently in the market include Metamask, Fantom (FTM), Avalanche (AVAX), and ThorFi (THOR).
It is predicted that these projects may also launch their own governance tokens in the future. Even Metamask’s team hinted at the possibility of Metamask getting its own token in the medium term. Should this happen, there could be a market cap competition between all of the wallet providers.
Privacy Coins
The last category covered in the video is privacy coins, which aim to conceal the identities of holders and users transacting on the network. For this category, Coin Bureau named ProjectOasis (OASIS), Monero (XMR), and Secret (SCRT) as projects to watch going into the next crypto bull market.
These projects currently face the highest levels of regulatory scrutiny since many illicit activities could take place on their networks. Coin Bureau mentioned that regulators may continue to crack down on these privacy-focused projects in the future, which may negatively impact their prices.