Cryptocurrencies achieved mainstream attention a few years ago and, despite their volatile nature, have established themselves as valid investment options in the market. The SEC’s approval of a Bitcoin Spot ETF early this year proves this. With more use cases for crypto and blockchain technology emerging, such as real-world assets and tokenization, the potential and excitement surrounding crypto is at an all-time high.
This year has also been particularly good for crypto. Bitcoin set a new all-time high, and the historic Bitcoin halving event was an overwhelming success. Historically, there has been a bull run after every Bitcoin halving, and there is a general expectation within the crypto industry that a new bull run might begin very soon. Should this happen, investors can generate massive profits by investing in the right cryptos.
If you are a crypto investor, now might be the best time to invest in high-potential cryptos that are sure to generate massive returns when the bull run begins. The best place to start is clearing your portfolio of poor-performing cryptos to sell before you incur more losses.
Avalanche (AVAX-USD)
Avalanche (AVAX-USD) is a popular layer one blockchain created as an alternative to Ethereum. It belongs to a group of blockchains known as “Ethereum Killers” due to their potential to replace the number one smart contract platform and remedy some of its pitfalls.
Although Avalanche successfully addresses the blockchain trilemma, which prevents blockchains from achieving decentralization to a sufficient scale and results in high gas fees, as in Ethereum’s case, it has failed to replace the latter as the industry’s number one smart contract platform. However, it attracted some Ethereum-based projects, such as Sushiswap and TrueUSD.
With a market cap of over $9 billion, Avalanche is one of the most prominent blockchains in the crypto industry. However, this year hasn’t gone particularly well for the layer one network. It has fallen by over 30% in the last month and is on a downward spiral in the market. With the bull run starting anytime soon, now might be a great time to sell the coin.
Axie Infinity (AXS-USD)
Axie Infinity (AXS-USD) is a blockchain-powered gaming platform modeled after popular retro games like Pokemon and Tamagotchi. The game involves collecting, raising, breeding, battling and trading creatures known as Axies against other players. These Axies are non-fungible tokens (NFTs) and can take on over 500 different forms. They are divided into common, rare, ultra-rare and legendary categories.
Axie Infinity was regarded as the pinnacle of blockchain gaming and the metaverse experience at its launch. However, it has yet to quite deliver on that promise, partly due to the decline in interest in blockchain gaming following the events of the 2022 crypto winter. This year, Axie Infinity has emerged as one of the poorest performers in the crypto industry, and analysts are now reporting that it could drop 96% before the end of the year.
This is the most bearish Axie Infinity has been in recent memory. The emergence of newer use cases for crypto and blockchain technology, such as Depin, AI, and the tokenization of real-world assets, certainly does not help its case. It might be a while before the gaming and metaverse narrative recovers mindshare in the crypto industry, meaning that now is a great time to sell the AXS token if you own it.
Filecoin (FIL-USD)
Filecoin (FIL-USD) is a decentralized storage system for the world’s important data. The major difference between Filecoin and other storage services is that it is peer-to-peer and managed by the individuals on the platform rather than a central body. On Filecoin, users pay for data storage and distribution services to providers (other users) using the $FIL token.
Despite its unique use case, Filecoin has performed poorly in the market this year and has been down by more than 21% in the last month. Furthermore, its trading volume and circulating supply have fallen 23% and 0.09%, respectively.
With the possibility of another bull run on the horizon, now may be the perfect time to get rid of Filecoin in favor of more promising altcoins if you own it.
On the date of publication, Joel Lim 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.
