cryptocurrencies

Dogecoin (DOGE -17.67%) was never really supposed to be a functional cryptocurrency. It’s a clone of a clone of Bitcoin with a few funny tweaks to the code, intentionally making Dogecoin less secure and less valuable in the long run.

Yet, its adorable dog mascot and support from popular meme lords made Dogecoin one of the most valuable cryptos on the planet. With a $37.6 billion market cap as of Oct. 9, it would be a mid-range member of the S&P 500 (SNPINDEX: ^GSPC) if it were a stock, comparable to household names like Yum! Brands or Delta Air Lines.

But these things change over time. Five years ago, Dogecoin was only the 43rd-largest name in crypto, with a $328 million market value. About one-third of the coins ranked above it in 2020 have fallen out of the top-100 list, according to CoinMarketCap.

And I think Dogecoin’s days in the spotlight are numbered. Thanks to firmer regulation, the advent of crypto-based exchange-traded funds (ETFs), and the incoming Web3 trend, the top coins of the relatively near future will have to prove their worth with real-world usage. Dogecoin doesn’t have much to offer in that department. By 2030, I expect Chainlink (LINK -15.25%), Avalanche (AVAX -14.17%), and Polkadot (DOT -21.71%) to have passed Dogecoin’s market value.

Sorry Doge, these coins are stealing your lunch. Image source: Getty Images.

Let’s talk about the Web3 revolution

Spoiler alert: I’ll keep coming back to Web3 ideals in these explanations. Cryptocurrencies should go mainstream in that world, where internet users own their data, digital assets, and online identities through blockchain technology rather than relying on big tech companies.

I mean, most people may be unaware of the Web3 changes going on behind the scenes, and the best Web3 apps will surely look and feel like any other application. But the structural changes are still necessary, and that’s why I like this particular trio of future crypto giants.

1. Polkadot connects the crypto universe

On that note, I have to mention Polkadot. It’s the brainchild of the Web3 Foundation, founded by Web3 champion and Ethereum (ETH -6.65%) co-founder Gavin Wood.

Polkadot’s main purpose is to help app developers take full advantage of many other cryptocurrencies and blockchain ledgers. It connects to the other cryptos, easily transferring data between them and simplifying the design of complex crypto apps.

It’s also incredibly fast, which comes in handy when interacting with some of the highest-performance crypto systems available. And thanks to a recent community vote, there is now a hard cap on the number of Polkadot coins that will ever exist — making it as inflation-resistant as Bitcoin.

Polkadot is much smaller than Dogecoin today, with a market cap of just $6.6 billion. That value relationship should flip by 2030.

2. Smart contracts would be pretty dumb without Chainlink

Chainlink is another crucial Web3 component. The leading oracle coin collects real-world data and delivers it to blockchain systems, usually to trigger smart contracts.

Development ecosystems such as Ethereum and Polkadot often rely on Chainlink to collect critical data. Popular data feeds include stock market pricing, foreign exchange rates, weather reports, and sports results. Without these data feeds, the Web3 world would grind to a halt — and Chainlink is the top data provider by far.

Chainlink is currently the 11th-largest cryptocurrency, with a market capitalization of $15 billion. This figure should trend higher over the next few years as Dogecoin fades.

3. Avalanche brings eco-friendly speed to Web3

Finally, Avalanche is a high-performance alternative to Ethereum. This coin combines quick smart contract execution with an energy-efficient computing back-end, making Avalanche a popular platform for eco-friendly decentralized apps.

And the Avalanche-based app portfolio is growing by leaps and bounds right now. Fresh examples include a global social network for sports fans, a decentralized fine wine database, and digital tickets to the Latin American baseball championships of 2025. These projects all hit the public market in the last two weeks.

Avalanche’s market cap stands at $12.0 billion today, up from $7.7 billion six months ago. Avalanche is a vibrant cryptocurrency with a real shot at Web3 relevance. Sorry, Dogecoin — Avalanche will probably also eclipse you in the next five years.

When cryptocurrency last soared in 2020 and 2021, we also saw smaller cryptocurrencies take off in what’s known as an “altcoin season.” These often unheard of cryptocurrencies skyrocketed and sometimes generated returns of thousands of percent.

Times have changed. Although Bitcoin (BTC 0.37%) has repeatedly set all-time highs during the past year, many smaller coins have struggled. Not only has Bitcoin grown more dominant, but there are also millions more new projects now than there were in the last crypto boom.

The appeal of under-the-radar cryptocurrencies is that you might uncover the next big thing and see eye-watering gains. However, the project might also collapse or turn out to be a scam. Altcoins can carry significantly more risk, not least because it isn’t always easy to find reliable information about them.

Image source: Getty Images.

That said, these six lesser-known cryptocurrencies are worth a closer look. All have established use cases, either in decentralized finance (DeFi) or in the real world. There are no guarantees, but these certainly have potential.

1. Chainlink

Chainlink (LINK 0.16%) is an important cog of the blockchain machine. Smart contracts (tiny pieces of code) need accurate information to function, and Chainlink provides it. It collates on-chain and off-chain data and feeds it to various blockchain ecosystems.

Chainlink recently announced it would work with the U.S. Department of Commerce to bring government data onto the blockchain. It is also collaborating with financial heavyweights such as the Swift international banking cooperative, Mastercard, JPMorgan, and more.

2. Monero

Monero (XMR 0.33%) is a privacy cryptocurrency. There’s a perception that these coins are mainly used by hackers and money launderers. That’s a valid concern, but, as Chainalysis points out, a lack of liquidity in privacy coins means criminals are actually more likely to use Bitcoin.

Importantly, there are also legitimate reasons for turning to privacy coins. Transparency is one of the core tenets of blockchain, meaning pseudonymous transactions can be viewed on the ledger. However, only the wallet address can be seen, which — in theory — protects people’s identities. The challenge is that it’s increasingly possible to connect wallet addresses to actual people or organizations.

As cryptocurrency becomes more mainstream, that could be problematic. For example, a business that uses stablecoins won’t want competitors to use blockchain transparency to find out what salaries they pay or what suppliers they use. Individual investors may want to protect their privacy for a host of reasons.

As a result, the growth in stablecoins and tokenization may well drive demand for privacy coins like Monero.

3. Cardano

Cardano (ADA 0.89%) may well be the best-known crypto on this list. Cardano is a smart-contract crypto, which means that other projects can be built on its ecosystem. It emphasizes real-world utility, particularly in terms of digital identities.

The project depends heavily on peer-reviewed research, which isn’t always popular in the fast-moving world of digital currencies. However, as the industry matures, established businesses are exploring ways to use the blockchain. That could well be the opportunity Cardano needs — the non-crypto world may be more appreciative of its methodical approach.

4. Render

Render (RENDER 1.38%) highlights a different use case for blockchain technology. People can join its network and put their unused computer processing power to work, earning Render tokens along the way.

Render sells this idle computing power to people who want to perform processing-intensive tasks like making graphics and videos. It splits the work across the tens of thousands of computers in its network. Originally aimed at graphics, the Render now also supports generative AI tools.

5. Arbitrum

Arbitrum is one of several so-called Layer-2 (L2) solutions. These sit on top of existing blockchains like Ethereum (ETH 0.10%) to improve performance, while still using the security and foundation of the main chain.

Arbitrum makes Ethereum more scalable. Developers can do all the same things they might do on Ethereum, but with faster transaction times and lower fees.

There are quite a few L2 solutions, but a look at DefiLlama shows that Arbitrum has attracted a good number of developers and users. As of Sept. 4, it had the third-highest number of apps. And it’s in the top 10 chains for total locked value — the value of assets on its system.

6. Hedera

Did you know that some cryptocurrencies don’t use blockchain technology? Hedera (HBAR 1.80%) is one of them. It supports the functionality that you would look for with a blockchain-based crypto. You can use it to make payments, transfer money, build smart contracts, and more. But the underlying technology works differently.

It uses something called hashgraph technology, where nodes talk to one another in a process it describes as gossip-about-gossip. Because it doesn’t rely on a process of adding and verifying new blocks, it can process transactions more quickly than traditional blockchains.

One of the big appeals of Hedera is its energy efficiency. Many traditional cryptos rely on either proof-of-work or the less energy-intensive proof-of-stake systems to keep their networks secure. Hedera says it consumes hundreds or thousands of times less energy without sacrificing speed or security.

It boasts heavyweights like Alphabet (GOOG 1.04%), Dell (DELL -1.45%), and IBM (IBM 0.51%) on its governing body, but has yet to prove itself in terms of DeFi activity.

Understand the risks

Cryptocurrency is still a relatively new asset class, and it’s advisable to ensure it only makes up a small percentage of your investment portfolio. If you’re moving beyond Bitcoin and Ethereum into smaller caps, the projects may fail or drop dramatically in value. Bear in mind that eight of the cryptos that were in the top 20 by market cap in September 2021 have fallen off that list today.

Even with relatively established altcoins, there’s a lot of risk. Be clear about how much you want to invest and what your strategy is — particularly what might cause you to sell your crypto. Try not to get caught up in the hype, especially around the latest meme coin. The idea is to find under-the-radar cryptos that will eventually be on people’s radars and stay there.