With the rise in geopolitical tensions, there has been a significant outflow of funds from risky assets like high-beta stocks and cryptos. On the other hand, asset classes like gold and oil have witnessed a big surge.
However, Bitcoin (BTC-USD) made a strong comeback and traded above $42,000 for a bit on Wednesday before falling. The rally came after news of an executive order on cryptocurrencies from President Joe Biden that would “support responsible innovation.”
This is a clear indication of the point that the crypto world will survive. Policymakers are looking at leveraging on the digital currency innovation rather than an outright ban on crypto. And once the executive order is public, it’s likely to spark further rally for cryptocurrencies.
In a portfolio of crypto assets, it’s important to hold some top coins like Bitcoin, Ethereum (ETH-USD) and Binance Coin (BNB-USD). These are typically low-beta coins from the crypto space. It also makes sense to diversify into some relatively smaller names.
However, if the crypto world continues to get bigger, some of the best returns will come from the altcoin space. Therefore, these four cryptos to buy may look interesting for investors as sentiments turn positive.
- Cap (CAP-USD)
- Panther Protocol (ZKP-USD)
- MarhabaDeFi (MRHB-USD)
- Dogecoin (DOGE-USD)
Now, let’s dive in and take a closer look at each one.
Cryptos to Buy: Cap (CAP-USD)
As an overview, Cap is an open protocol that allows investors to trade in crypto perpetuals with zero fees. Currently, Cap allows trading on Bitcoin and Ethereum. With a maximum leverage of 50x, Cap is attractive for investors who are day-trading.
It’s worth noting that most of the centralized exchanges provide leveraged trading. However, Cap, being decentralized, differentiates itself from the others. How? Users can connect using their wallets to trade on the platform.
Additionally, coming to the stalking income, I like the concept behind investors generating a robust APY. Investors can deposit Ethereum in a pool. The pool is used to pay traders the profits and receive their losses. If traders made continued profits, the pool APY would decline.
However, given the nature of day-trading and leveraged trading, the Ethereum pool currently has an APY of over 100%. In simple words, if an investor deposits one Ethereum in the pool, it’s likely to double in 12-months.
With the payout in Ethereum, investors have a blue-chip crypto in their pockets. Moreover, Cap also has a USD coin pool that provides investors with a similar APY of over 100%.
Overall, high volatility is a big risk in the cryptocurrency space. That said, Cap allows investors to stake and earn Ethereum without having to buy the native token. This seems attractive, and so some money can be parked for robust returns.
Panther Protocol (ZKP-USD)
Panther Protocol had a weak listing at around 20 cents after a public offering of tokens at 60 cents. The initial selloff came from some early investors. However, ZKP token has surged by nearly 100% and currently trades at 32 cents. This implies a fully diluted market capitalization of $324 million.
As an overview, Panther Protocol is an end-to-end solution that provides privacy in Web3 and DeFi. In turn, the protocol provides financial institutions with a clear path to participate in decentralized finance. And with this privacy, DeFi traders do not lose their competitive advantage.
With the launch of ZKP tokens, the project has also introduced staking. Currently, investors can earn an APY of 132.8%. Furthermore, by staking, investors also get voting rights on Panther DAO proposals.
It’s also worth noting that in November 2021, Panther raised $32 million. Thus, the project has ample financial flexibility to invest in road-map development. Also, in the second quarter of 2022, Panther plans integration with at least one DeFi protocol. Currently, the bridge to Polygon (MATIC-USD) is underway.
Overall, ZKP token has a robust staking reward and the project also looks promising for the long term. And with the rise of Web3, Panther Protocol is likely to be among the key players in the privacy solutions industry.
Cryptos to Buy: MarhabaDeFi (MRHB-USD)
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MRHB token has been a picture of resilience amidst the recent volatility in the crypto markets. After listing at 4 cents in December 2021, the token had surged to highs of 14 cents. However, after a meaningful correction, the token has bottomed out at around 5 cents. So, considering the deep correction in cryptos across the board, MRHB has been an out-performer.
A key reason is the uniqueness of the project. Marhaba is an all-in-one solution to bring sharia-compliant crypto solutions to the market.
In terms of products, Liquidity Harvester can scan the crypto space to generate returns of 5% to 15% from sharia compliant projects. Meanwhile, the Sahal wallet is a cross-chain that will “automatically screen out the coins, tokens and protocols that include interest-based returns or are linked to gambling, pornography and other activities deemed unethical or non-halal.”
Talking about the addressable market, the project believes that there is $3 trillion in potential liquidity that can be sharia compliant. While the total value locked decentralized finance is around $150 billion, there is no sharia compliant DeFi. Therefore, the project has meaningful growth potential.
Overall, I believe that MRHB token can re-visit all-time highs in the next 12 months. That would imply an upside potential of over 100% from current levels.
After a big correction from all-time highs, Dogecoin finally seems to have found some support right near 12 cents. If the sentiments continue to remain positive for cryptos in the coming weeks, Dogecoin is likely to deliver some quick returns.
Among the meme coin universe, Dogecoin and Shiba (SHIB-USD) are likely to survive a few years down the line. Dogecoin has a big community and has seen wider adoption as a currency. And in terms of positive catalysts, Elon Musk announced that Tesla (NASDAQ:TSLA) merchandise can be purchased using Dogecoin. So if crypto regulations are favorable in the United States, it’s likely that more companies will adopt Dogecoin as a payment currency.
Furthermore, I would agree with Elon Musk that Dogecoin is a better currency to buy things with as compared to Bitcoin. A key reason for this is a lower cost per transaction. Overall, though, this factor supports the view that the meme coin can possibly have a wider use as a currency.
Of course, I don’t expect Dogecoin to re-test its all-time high of 73 cents. However, it’s very likely that the meme coin trends higher by 20% to 30% from current levels.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy and commodities sectors.
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