3 Altcoins, not Bitcoin (CRYPTO:BTC), Have Triple-Digit Return Potential

Bitcoin is the crypto king but three altcoins are attractive options because of higher return potentials.

| More on:
crypto blockchain

Image source: Getty Images

Any type of cryptocurrency other than the world’s most popular crypto, is called an altcoin. Ethereum (CRYPTO:ETH), Cardano (CRYPTO:ADA), and Ripple (CRYPTO:XRP) are examples of altcoins. The three are gaining investors’ attention and could be the best alternatives to Bitcoin.

You can liken digital currencies to growth stocks because of their massive return potentials. Bitcoin rose to an all-time high of US$67,566.83 on November 8, 2021, but the rally did not last. Bitcoin’s volatile nature showed once more and the price dropped 48.2% to US$35,030.25 on January 22, 2022.

As of this writing, BTC trades at US$44,388.80, a year-to-date loss of 4.2%. While the crypto has climbed above US$40,000, don’t discount a pullback. Some crypto analysts think Ethereum, Cardano, and Ripple could have better chances of providing triple-digit returns in 2022.

Upgrade to Ethereum 2.0

Ethereum, the second-most popular cryptocurrency, outperformed Bitcoin last year. Its total return was 399.1% compared to BTC’s 59.7%. This altcoin also went on a tailspin after peaking to US$4,812.90 in November 2021. The price sunk below US$3,000 but currently trades at US$3,239.46 (-12% year-to-date).

Many observers in the crypto sector believe that ETH has a higher price potential than BTC. The Ethereum blockchain is among the extensive networks in the industry and the upgrade to Ethereum 2.0 could propel the crypto higher. The network’s overhaul began in 2020 and should finish by the summer of 2022.

ETH holders should welcome the upgrade because transaction fees will be lower. Moreover, replacing the proof-work mining structure with staking will make the traditional mining system obsolete. According to crypto experts, the Ethereum network is more versatile as other cryptos, including non-fungible tokens (NFTs), trade on the platform.

Fast-growing blockchain network

Some crypto bulls recommend Cardano because the open-source blockchain network boasts excellent prospects. Its platform is similar to Ethereum as developers can also build decentralized applications (dApps) and launch smart contracts. Thus, you can say that this fast-growing blockchain network is Ethereum’s chief rival or competitor.

Cardano’s overall return in 2021 was an astronomical 622.3% and it currently trades at US$1.1948. Its potential increase in value hinges on the success of projects in the pipeline. One of its aims is to carry complex transactions without the need for conduit banks or brokers.

Take-off is near

Ripple might have a significant market share by now if not for the U.S. SEC lawsuit filed last December 2020. The company operates RippleNet, a payment and exchange network. XRP is the national token of the network that offers faster and more affordable money transfer fees. Cross-border payments are likewise instant compared with traditional systems.

Unfortunately, Ripple can’t take off due to the pending case. On February 8, 2022, CoinDesk reported that XRP’s market cap rose above US$40 billion to overtake Cardano. It’s now the sixth-largest cryptocurrency in the world. The price climbed to $0.878 and some analysts say XRP could appreciate exponentially if the court rules in favour of Ripple soon.

Appealing cryptocurrencies       

Bitcoin is the still the undisputed crypto king with its market cap of US$832.32 billion. However, that doesn’t mean it’s the most appealing cryptocurrency. Ethereum and Cardano have delivered higher gains already and Ripple could soon too.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.

More on Investing

stock analysis

Buy the Dip: 2 Stocks to Buy Today and Hold for the Next 5 Years

These Canadian stocks are trading at discounted valuations, providing an opportunity for buying the dip.

Read more »

bulb idea thinking

Safety in Size? 2 of the Bluest Blue-Chip Stocks I’d Buy Now

TC Energy (TSX:TRP) and another cash cow have huge dividend yields for safe investors.

Read more »

A cannabis plant grows.
Cannabis Stocks

Can Aurora Cannabis Stock Recover in 2024?

Aurora Cannabis stock is down 99% from all-time highs but remains a high-risk bet, despite its cheap valuation.

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

Brookfield Infrastructure Partners (TSX:BIP.UN) kicked off 2024 with a bang. Where will it be in five years?

Read more »

TFSA and coins

TFSA Investors: 3 Incredible Stocks for 2024

Are you looking for stocks to buy and hold for years for your TFSA? These three stocks could deliver exceptional…

Read more »

A person looks at data on a screen
Stocks for Beginners

3 Warren Buffett Stocks to Hold Forever

Warren Buffett sold some shares in Apple (NASDAQ:AAPL), and the market had questions.

Read more »

Dividend Stocks

Golden Years Gain: Your CPP Benefits at Age 70

CPP users delaying pension payments until 70 will receive substantial monthly income streams in the golden years.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Dividend Stocks You Can Safely Hold for Decades

Top TSX dividend stocks are on sale.

Read more »