Investors seeking out higher returns are quickly grabbing smaller, lesser-known digital tokens that carry a higher risk, given the craze for cryptocurrencies across the globe.
Some altcoins have rallied as much as 50,000 percent in the past year, despite the market volatility in April-May.
As with bitcoin in the early days, Sharan Nair, Chief Business Officer of CoinSwitch Kuber, says investors aim to extract huge benefits from these cryptocurrencies.
Axie Infinity, an Ethereum-based gaming token, has soared over 48,380 percent, attracting millions of users within a short period of time from developing countries like the Philippines and Indonesia.
In addition to Vikram Subburaj, CEO and Co-founder of Giottus Cryptocurrency Exchange, Axie Infinity will face stiff competition, limiting its growth.
Dogecoin, which was created to mock the speculation in cryptocurrencies, has soared as much as 8,300 percent in the recent year, especially after Tesla boss Elon Musk said he was working with its developers.
The LUNA coins from blockchain payment network Terra, which uses dollar-pegged stablecoins to power price-stable global payments systems, have gained about 6,000 percent in the past year.
Subburaj of Giottus expects it to hit $1, which is still about 300 percent higher than where it is now. Terra’s growth is likely to be limited given impending regulations around stable coins, he said.
In the last year, Polygon, founded by three Indians, has delivered over 4,300 percent returns. According to Subburaj, it has the potential to grow along with Ethereum, and a substantial rise from current levels is possible next year.
In the last year, Cardano and Solana have gained 1,400-2,000 percent.
A recent craze over non-fungible tokens has brought these coins to a more mainstream audience, according to Nair of CoinSwitch Kuber. In the coming days, coins like these will experience a surge in value, and investors will be in a good position, he adds.
Ethereum has given 770% returns among the behemoths in the last year. The market experts attribute this rally to the buzz around the London Hard Fork, a recent software update that strengthened the network.
Huobi Global’s Managing Director of International Operations, Vincent Lau, says the company will continue to grow. “The entire blockchain can provide more functionalities and make the ecosystem more sustainable,” he adds.