What Is the Next Cryptocurrency to Explode in 2023?

The most exciting thing about cryptocurrency investments is that when they explode, they skyrocket in value. In 2021, we saw Solana (SOL 0.21%) increase by more than 10,000%. Meme token Shiba Inu (SHIB 0.0%) shot up more than 40,000,000%.

Of course, things haven't gone nearly as well since then. Crypto entered a bear market, and prices of most major coins fell significantly. Although there's no guarantee that crypto is here to stay, the market has bounced back before.

It's obviously impossible to know which cryptocurrency is next to boom. However, we can pick out some possible candidates that are capitalizing on current trends that include artificial intelligence (AI), decentralized apps (dApps), and digital payment solutions.

8 next cryptocurrencies to explode in 2023

Here are the cryptocurrencies that could be due for a significant bull run:

1. SingularityNET

SingularityNET (CRYPTO:AGIX) is a blockchain platform that anyone can use to create, share, and monetize AI services. It provides a global AI marketplace where users can purchase all kinds of AI services using the AGIX utility token.

The AI boom has been one of the most exciting developments in 2023, both for cryptocurrency and the world as a whole. SingularityNET is well positioned to capitalize on the trend. It has a large team of AI scientists, researchers, and developers. The platform makes it easy for users to buy AI services or develop and sell their own.

SingularityNET already had quite a bit of success earlier in 2023, with its price increasing by more than 1,300%. It later declined, likely due to some investors taking their profits. However, it could see more success as AI continues to grow.

2. Ethereum

At first glance, Ethereum (ETH 0.06%) might seem out of place here. It's far from under the radar. It has been the second-largest cryptocurrency for years, so most crypto investors know about it.

While we're probably past the point where Ethereum shoots up by 10,000%, it still has serious growth potential. It was the first blockchain to offer smart contracts, which developers can use to build dApps. Ethereum's first-mover advantage has given it a sizable lead over similar competitors.

Ethereum went through its long-awaited Merge to a proof-of-stake system in September 2022, significantly improving its energy efficiency. The upgrade also means it's now possible to stake Ethereum and earn more, which could help attract more investors. Overall, Ethereum has great growth potential without the extreme volatility of smaller cryptos.

3. Fetch.ai

Fetch.ai (FET 4.84%) is an AI lab that allows individuals or organizations to build their own autonomous agents. The agents can then handle real-world tasks for the user.

Agents store data and interact with each other on a blockchain platform, so they can collaborate with no human interaction.

FET tokens are the native cryptocurrency for Fetch.ai. As such, they're used as payment on its network. This is another cryptocurrency that did well early in 2023 due to the hype around AI technology and could be poised for future success.

4. Polygon

Polygon (MATIC 0.15%) is unique in that it's a blockchain platform designed to work with another blockchain platform. It improves Ethereum's scalability by letting its dApps use Polygon's sidechains.

One of the exciting things about Polygon is the partnerships it has established. Many big brands are working with Polygon to launch their NFT projects.

Current partners include:

  • Walt Disney (DIS -0.83%)
  • Starbucks (SBUX -0.73%)
  • Meta Platforms (META 1.0%)
  • Nike (NKE -0.45%)

Like Ethereum, Polygon is already a top cryptocurrency. While it might not deliver massive gains, it's also far less likely to fail than smaller cryptos, and it still has plenty of room to grow.

5. Monero

Monero (XMR 0.04%) is the best-known privacy coin, a cryptocurrency with anonymous, untraceable transactions. It uses privacy-enhancing technology so that the sender, recipient, and amount of every transaction are hidden. This coin has been around since 2014, which is a long time in a market that moves as quickly as cryptocurrency. The reason it's an interesting investment now is because of increasing crypto regulation in many countries, including the United States. There are plenty of people who want to keep their cryptocurrency transactions private, especially as regulations become stricter. That gives Monero a clear use case and makes it a dark-horse pick for a crypto that could see continued success.

6. Storj

Storj (STORJ -0.1%) takes a crypto-based, decentralized approach to cloud data storage. Unlike traditional cloud storage providers that have their own data centers, Storj allows anyone to run a storage node with their unused hard drive space.

When you operate a storage node, you receive payment in STORJ tokens. This makes Storj a good way to generate passive income for those with hardware who meet the minimum requirements. To operate a node, you need reliable bandwidth and at least 99.3% uptime.

Data storage needs are only going to keep rising, and Storj's biggest advantage is that it offers a quality product. As a storage service, it has gotten positive reviews. It even won a 2023 NAB Show Product of the Year Award in the "Cloud Computing and Storage" category.

Although many cryptocurrencies get attention because of what they could do, Storj actually has a working product. Its success could give it staying power compared to other crypto tokens.

7. Basic Attention Token

Most of us wouldn't mind getting paid to browse the internet. With Basic Attention Token (BAT 0.32%), you can.

All you need to do is install the company's Brave browser. This browser replaces the usual internet ads with ads that pay you in rewards, specifically in BAT. By using Brave, you can get paid for your internet ad views instead of other companies.

Brave has a long way to go before it's competitive with the biggest web browsers, but it passed 50 million monthly active users in 2022. It also introduced the multichain Brave Wallet that year, which supports many of the leading dApps. And BAT utility in DeFi has grown rapidly, with more than 10% of the BAT supply used in DeFi protocols.

8. XRP

XRP (XRP -0.2%) is the native cryptocurrency for Ripple, a payment protocol that uses blockchain technology for fast, inexpensive transactions. Ripple was designed to facilitate international transfers, and it has partnered with hundreds of financial institutions that use its technology.

Ripple has been around since 2012, but it became embroiled in a Securities and Exchange Commission lawsuit at the end of 2020, prompting most major U.S. crypto exchanges to delist the company.

The biggest problem for Ripple has been the lawsuit, but XRP is still one of the largest cryptocurrencies. If XRP becomes widely available in the United States again, that could lead to substantial growth in its investors and value.

Should you consider investing in the next crypto that explodes?

It's tempting to try and find that next big cryptocurrency. Even though you could potentially see incredible returns this way, it's also difficult, time-consuming, and extremely risky.

For starters, you'll need to look for cryptocurrencies outside the market leaders. Smaller cryptocurrencies have greater growth potential, but they're also more likely to fold, so there's a bigger chance of losing your entire investment. To balance that out, you might want to put some of your money in cryptocurrency stocks or large-cap coins.

Researching those smaller cryptocurrencies takes time. And, even if a project looks like a sure-fire winner, anything can happen in the crypto market. Your carefully researched investment could go nowhere, while a practically useless cryptocurrency goes to the moon just because it has "Shib" or "Doge" in its name.

Following the cryptocurrency trends or trying to predict them isn't a good investment strategy. There's nothing wrong with giving it a shot, but keep your expectations -- and the amount you invest -- very low.