Top 5 ZK Crypto Altcoins That Can Generate 50 - 100x Returns in 2023
In my previous articles, I shared my top AI altcoins and Chinese tokens that I think have significant potential for the next bull run. But there’s another big crypto narrative that’s playing out right now - ZK rollups.
ZK what?
ZK rollups are Layer 2 blockchain protocols. This means they help Layer 1 protocols, in particular Ethereum, to be more scalable - so faster and cheaper.
If you’ve ever used the Ethereum network, you know how congested and expensive it can get. I remember that at the peak of the previous bull run, the fees on Ethereum for a single transaction ran as high as $1000.
This is ridiculous and unsustainable.
Layer 2 protocols aim to fix that. One of the most popular types of Layer 2 protocols right now is called ZK rollups.
Rollups essentially roll up Ethereum transactions into bathes and execute them outside the Ethereum chain. They handle all the data processing and store only the bare minimum of transaction data on-chain, alleviating congestion and making the process much more effective.
So, what about the ZK part?
ZK stands for Zero-Knowledge. ZK rollups use Zero-Knowledge Proof to prove the validity of transactions.
Zero-Knowledge Proof allows achieving privacy on public blockchain networks by cryptographically proving that a certain piece of information is valid without disclosing any other information. It’s like proving you’re an adult without providing your date of birth.
ZK rollups are just one type of rollups. Others, like Optimistic rollups, also exist.
Given that Ethereum is being used for a huge and growing number of dApps, the best-performing solutions to Ethereum’s inherit scalability problems are gaining momentum.
ZK Rollups are also attracting attention because of 2 very anticipated token releases by zkSync and StarkWare that should happen this year.
Learn more about this in my post Top 10 Unreleased Crypto Tokens With 50x - 200x Potential In Next Bull Run.
Let’s look at 5 ZK tokens that can gain considerable momentum in the following months.
1. ImmutableX ($IMX)
ImmutableX is the leading Layer 2 for NFTs “powering the next generation of web3 games”. It allows instant trading and massive scalability, as well as zero gas fees for minting and trading NFTs without compromising security.
Many popular games such as Illuvium, Gods Unchained, and Kongregate are building on ImmutableX.
The protocol’s native token IMX is an ERC-20 token used for gas fees, staking, and governance. It has a maximum supply of 2 billion tokens, 43% of which are in circulation.
Immutable X has almost 300k Twitter followers. It has a current market cap of $833 million and is listed on exchanges like Binance, KuCoin, CoinBase, and Kraken.
2. Mina Protocol ($MINA)
Mina is “building the privacy and security layer for web3 with zero-knowledge proofs”.
Mina is considered the world’s lightest blockchain because its size remains constant despite usage growth. It also remains balanced in terms of security and decentralization.
MINA is the protocol’s native token used for staking, transaction fees, and block production.
It’s an inflationary currency with no supply cap. This is to incentivize a high level of staking participation during the first years, which will increase the level of decentralization. The inflation rate will decrease over time, eventually reaching 7%.
Mina Protocol currently has an $853 million market cap and is listed on many exchanges such as Binance, CoinBase, Kraken, OKX, and Gate.io.
The project has 200k followers on Twitter.
3. Loopring ($LRC)
Loopring is building a protocol for scalable, non-custodial, orderbook-based exchanges on Ethereum by leveraging Zero-Knowledge proofs. Its goal is to combine the best aspects of centralized and decentralized exchanges to make decentralized exchanges as performant as centralized ones.
Loopring’s Layer 2 provides a low-fee, high-speed platform for trading, swapping, liquidity providing, and payments without sacrificing Ethereum security.
$LRC, Loopring’s native token, is an ERC-20 token used for staking and performing key operations on the protocol. It currently has a market cap of $466 million and a maximum supply of 1,374,513,896 tokens, 97% of which have already been released. It’s listed on major exchanges like Binance, KuCoin, CoinBase, and Kraken.
Loopring has 210k Twitter followers and it’s an interesting project to have on your crypto radar because it falls into two strong crypto narratives of 2023 - ZK rollups and DEXs.
4. Dusk Network ($DUSK)
Dusk Network is a privacy blockchain for financial applications. It’s a layer-1 blockchain for programmable and confidential securities, powered by Zero-Knowledge proofs. It provides a scalable public infrastructure, direct settlement finality of transactions, and strict data privacy.
The network’s native token DUSK is an ERC-20 token used for staking and as a utility token to initiate transactions, or for the deployment of smart contracts.
Dusk has a current market cap of $91 million and a maximum supply of 1 billion tokens with 43% of tokens in circulation. It’s listed on major exchanges like Binance, KuCoin, and Bitfinex and has 46k followers on Twitter.
5. Syscoin ($SYS)
Syscoin is a smart contract platform with ultra-low fees, decentralized Layer-1 security, and Layer-2 scalability.
Its goal is to enable users to build fast, secure, and low-cost applications with ease. Syscoin is designed to support the future of smart contracts within the Metaverse, IoT, and Smart Cities.
The $SYS coin is used for staking, gas fee, and smart-contract executions in the network. The supply of SYS is uncapped and is managed through protocol emission and deflationary burning of fees.
Syscoin currently has a $138 million market cap. It’s listed on Binance, KuCoin, Houbi, and Bittrex, and has 230k Twitter followers.
Final thoughts
If blockchain technology and cryptocurrencies are to become massively adopted, current scalability problems will need to be fixed. Zero-Knowledge rollups provide a smart solution to this issue and are gaining lots of momentum.
I think that when trading the ZK crypto narrative, we can take two approaches.
We can trade ZK tokens short-term on pullbacks while closely following what Bitcoin is doing. Like any other altcoin, ZK tokens will underperform if Bitcoin decides to take a trip to the south.
The alternative is to see this as a longer-trend opportunity. When zkSync and StarkWare finally release their tokens, the ZK narrative will pick up momentum and ZK tokens are likely to post massive gains.
Remember that the bull run is not yet confirmed, so keep a close eye on Bitcoin and take profits often.
PS: If you want to learn how to make a consistent profit from the Metaverse in 2023 and beyond, check out my free guide How To Make Your First $1000 In The Metaverse.
Join Medium using my referral link and get exclusive access to more stories like this one and to a wide range of quality content from thousands of writers for just $5/month.
Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing your hard-earned money.
New to trading? Try crypto trading bots or copy trading on best crypto exchanges
Join Coinmonks Telegram Channel and Youtube Channel get daily Crypto News