This Little-Known Cryptocurrency Could Be the Next 10-Bagger

Cryptocurrencies like Terra Luna are rapidly disrupting the industry. Banxa Holdings (TSXV:BNXA) could be a proxy bet on this.

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

Several cryptocurrencies have delivered tenfold returns over the past year. Interestingly, the biggest and most popular ones aren’t on this 10-bagger list. 

Bitcoin (CRYPTO:BTC), for instance, has delivered only a 91% return year to date. Ethereum (CRYPTO:ETH) has delivered 480% over the same period. Impressive performance, but not quite life-changing

Meanwhile, niche digital assets such as Solana and Axie Infinity’s native cryptocurrency AXS have delivered 9,202% and 27,165%, respectively, over the same period. That’s a game-changer. A $1,000 investment in AXS in January could have made you a multimillionaire by now.

Growth-seeking investors need to look far below the radar to spot underappreciated digital assets with similar prospects. Here’s one potential idea.

Potential 10-bagger

Terra Luna, and its native token LUNA, is a potential 10-bagger in my opinion. Effectively, the platform is the base for “programmable money.” In other words, it’s akin to WordPress for decentralized financial products. 

South Korean Stanford graduates Do Kwon and Daniel Shin launched Terra Labs in 2019. The development team is focused on making blockchain technology more accessible to financial service providers and investors. 

Terra’s platform has been used to create a wide range of DeFi products. UST, a stablecoin backed by the U.S. dollar, is probably Terra’s flagship product. Other products include a protocol for synthetic assets called “Mirror,” an investment protocol called “Pylon,” and a savings product called “Achor.” Effectively, the Terra platform is an expanding pool of crypto financial products.

The fact that Terra Luna is so easy to build on has attracted developers from across the industry. As the developer community expands, users can expect the number of DeFi products within Terra’s ecosystem to rapidly expand as well. In fact, some products have stretched beyond DeFi into e-commerce and online marketplaces for physical goods. 

At the time of writing, the Terra platform has over 15 commercial partners and over 45 million active users who have collectively completed transactions worth $25 billion in Gross Merchandise Value (GMV).

All this innovation and utility adds value to the underlying platform and its nature token LUNA. 

About LUNA

LUNA, the platform’s native cryptocurrency, serves many purposes within the ecosystem. LUNA serves as liquidity on the platform. Users who hold LUNA can stake it to earn passive income. Meanwhile, their staked LUNA is used as collateral to issue stable coins such as UST. 

LUNA holders can also participate in governance. The LUNA holder community votes on major updates to the platform or its underlying rules and framework. This means that every token carries a share of the responsibility for maintaining and expanding the platform. 

Each LUNA is currently worth US$40 or C$50.6. The total circulating supply is 398 million while the aggregate market value is $20 billion. If LUNA lives up to its potential as a base layer for DeFi products, it could be worth as much as major FinTech companies that are trading for 10 times the value. 

If you’re looking for a publicly-traded stock that has exposure to Terra LUNA, Banxa Holdings (TSXV:BNXA) could be an option. The company helps users convert their fiat currencies into crypto. So, that means the growing popularity of any digital asset, including LUNA, will benefit it. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani owns shares of Banxa Holdings Inc., Bitcoin and Ethereum. The Motley Fool has no position in any of the stocks mentioned.

More on Cryptocurrency

cryptocurrency, crypto, blockcahin
Cryptocurrency

HIVE Blockchain Stock Fell 18% In October – Is It Time To Buy? 

Hive Blockchain (TSXV:HIVE) stock is down with the crypto market but ready for a BTC rebound.

Read more »

crypto, chart, stocks
Cryptocurrency

2 Top Cryptocurrencies to Buy in October 2022

Ethereum and Solana are two of the most popular cryptocurrencies in the world that are well poised to deliver substantial…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Cryptocurrency

2 Cryptocurrencies to Buy for Potential Recovery

The largest and most liquid cryptocurrencies may not always be the first to recover, and you may have to go…

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

Sinking Crypto Stock: Is Hut 8 (TSX:HUT) Worth Buying at $2.30?

A prominent crypto stock trading at an absurdly cheap price, but you must have a high-risk appetite to consider buying…

Read more »

sad concerned deep in thought
Cryptocurrency

Is Coinbase Stock a Good Bet for Cryptocurrency Investors?

Coinbase stock is down 80% from all-time highs, but the U.S.-based cryptocurrency exchange is still one of the largest platforms…

Read more »

Big Bitcoin logo.
Cryptocurrency

Will Bitcoin Ever Shift to a Proof-of-Stake Model?

Following Ethereum's (CRYPTO:ETH) Merge, will Bitcoin (CRYPTO:BTC) adopt a proof-of-stake consensus mechanism or stand pat?

Read more »

cryptocurrency, crypto, blockchain
Cryptocurrency

HIVE Blockchain (TSXV:HIVE) Stock: Is it Cheap or a Falling Knife?

HIVE Blockchain Technologies Ltd. (TSXV:HIVE)(NASDAQ:HIVE) is a crypto miner that looks undervalued in the face of major volatility.

Read more »