How to assess which are the most promising cryptocurrency assets to invest in presents a number of challenges for investors, especially when attempting to approach the matter from the standpoint of a risk-reward ratio (R:R).
Put simply, how much risk are you willing to take for a given amount of reward? Altcoins other Bitcoin and Ethereum are risky assets, but also have high potential upside.
What are the Most Promising Cryptocurrencies?
- Meta Masters Guild – Overall Most Promising Cryptocurrency Offering Top P2E Rewards
- Fight Out – Popular Crypto With Lucrative M2E Rewards For Doing Workouts
- C+Charge – Sustainable Crypto Increasing EV Adoption with Carbon Credits
- RobotEra – Promising Metaverse Cryptocurrency on Presale Since Nov 2022
- Calvaria – Upcoming Card Battle Crypto Offering Promising P2E Rewards
- Lucky Block – Emerging Crypto Casino with an NFT Competition Platform
- Dash 2 Trade – Promising Crypto Analysis and Social Trading Platform
- IMPT – Promising Crypto Asset Rewarding Carbon Credit Burns
- Tamadoge – Popular Meme Utility Coin Provided Investors 18x Returns During ICO
- Battle Infinity – Global Metaverse Gaming Platform Surging 700% on PancakeSwap
- Solana – Efficient Blockchain Platform Enabling Bulk Transaction at Low Fees
- Polygon – Highly Scalable Decentralized Platform Boasting User-Friendly dApps
- Avalanche – Enables Smart Contracts with Scalable and Efficient Functionality
- Near Protocol – Popular dApp Platform Focusing on Developers and User-Friendliness
- Fantom – Scalable and Secure for DeFi and dApp Investors Using aBFT Consensus Layer
- Binance Coin – Globally-Known Native Token of the Highest Volume Traded Crypto Exchange
- Decentraland – NFT Game Enabling Investors to Monetize Virtual Plots of Land
Reviewing the Most Promising Cryptos
Our top picks are new crypto projects with high potential either on presale now or launching shortly, as investing at a low price point usually holds the most promise for your portfolio – buy low, sell high. Most retail investors FOMO into green candles to buy the top of a bull run, rather than taking the time to research a private sale, presale or ICO.
1. Meta Masters Guild – Overall Most Promising Cryptocurrency Offering Top P2E Rewards
Meta Masters Guild (MMG) is hosting a presale of its native token $MEMAG, which has already shown that it has tremendous potential after raising $50,000 within 24 hours of the presale launch.
Being the world’s first mobile-focused gaming guild, $MEMAG has solidified its potential by raising an additional $500,000 within a week, selling out the first stage. Investors can still be part of the early-round fundraising by buying $MEMAG tokens at $0.01 during stage 2 — ends when the hard cap of $1.12 million is reached or the scheduled days lapse.
So far, nearly $1 million USDT has been raised, so stage 2 is selling out at an even faster pace than the first stage. $MEMAG will increase in value throughout the different stages until it is eventually priced at $0.013.
After the presale ends, $MEMAG will be listed on exchanges. But MMG has allocated only 15% of the 1 billion token supply to exchanges and liquidity.
MMG’s platform aims to revolutionize gaming by offering a play and earn platform that rewards players with Gems. Players can use Gems to buy NFTs or convert them to $MEMAG tokens, which can be exchanged for other currencies.
Gems will be used for all games added to this ecosystem, which aims to provide numerous games that are engaging and interactive.
Join the Telegram channel to find out about the latest games added to the platform. Read more about the token and the ecosystem on the whitepaper.
MMG has allocated 35% of the total coins to the presale. Investors who buy $MEMAG tokens to the value of at least $150 and hold them on the day of the draw stand a chance of winning the $100,000 token giveaway.
2. Fight Out – Popular Crypto With Lucrative M2E Rewards For Doing Workouts
Fight Out is one of the most promising new crypto tokens in 2023. This best move-to-earn crypto project is breaking the mold of how athletes train and leveraging advances in the metaverse to make gaining fitness more rewarding than ever.
With Fight Out, athletes can access on-demand, personalized workouts and training videos from top coaches. As they complete workouts, they’re rewarded with REPS, an in-app currency. REPS can be redeemed for fitness-centric rewards like exercise equipment and one-on-one coaching sessions.
REPS is cleverly designed to encourage athletes to improve their all-around fitness. There are soft caps on how much REPS a user can earn each week for strength workouts, cardio workouts, and technique workouts. So, users earn the most REPS when they do a little bit of everything instead of focusing only on strength or only on cardio.
On top of that, every athlete on Fight Out receives a one-of-a-kind avatar that mirrors their fitness. As a user completes workouts and gains fitness, so too does their avatar.
Avatars can be used in the Fight Out metaverse to show off an athlete’s gains or to test their mettle against other athletes. The platform offers virtual leagues and tournaments where players can compete for prizes.
The heart of the Fight Out ecosystem is the project’s native FGHT crypto token. FGHT can be used to pay for Fight Out subscriptions and offers a 25% discount relative to paying with fiat. That’s a huge incentive for Fight Out athletes to hold FGHT. This token can also be used to buy extra REPS or to pay for entry into virtual tournaments.
FGHT is available on presale now, and it’s one of the biggest crypto presales of the year. Fight Out is aiming to release 90% of the total locked FGHT supply. That’s good news for early investors who buy Fight Out token since they stand to reap big gains when the project holds its IEO after the presale.
Presale Started | 14 December 2022 |
Purchase Methods | ETH, USDT |
Chain | Ethereum |
Min Investment | None |
Max Investment | None |
Fight Out is also offering bonuses during the presale. Investors who buy at least $500 worth of FGHT will earn a 10% bonus, to be paid in FGHT tokens at the end of the presale. Investors who stake their FGHT tokens for 6-24 months can watch their holdings vest. These investors can earn between a 10% and 25% bonus in FGHT. Check out the Fight Out whitepaper for all the details about vesting rewards.
Fight Out is aiming to finish the presale in Q1 2023 and hold an IEO on centralized exchanges. The app is expected to launch in Q2. Athletes and investors can join the Fight Out Telegram group to get project updates as the presale progresses.
The price of FGHT will increase as more tokens are bought, so don’t wait to check out the presale. Right now is the best time to lock in the lowest price for FGHT and enjoy the biggest potential gains from this exciting new move-to-earn project.
3. C+Charge – Sustainable Crypto Increasing EV Adoption with Carbon Credits
C+Charge is an environmentally-friendly project that is offering its native token $CCHG as a payment option at charging stations for electric vehicle (EV) drivers.
This ecosystem is using $CCHG to expedite the adoption of EVs on a mass scale by rewarding drivers with carbon credits. Investors can be part of this project during the first stage of its presale by investing in $CCHG at $0.013.
The second stage of the presale increases the coin’s value to $0.0165. Other stages further increase the coin’s value. Investors are pressed for time as the C+Charge presale is scheduled to end in March and then $CCHG tokens will be listed on exchanges on 31 March 2023.
C+Charge will enable drivers to pay for charging their cars with an app, which will store $CCHG tokens and track the carbon credits received after each charge.
Drivers can also use the app to locate the nearest charging station. The app will also contain information such as the charging price and wait times.
To get more information about $CCHG tokens, subscribe to the Telegram channel and read the whitepaper.
The ecosystem has allocated 40% of the 1 billion tokens to the presale. Only 8% of the total supply is allocated to liquidity, so investors have a better chance of finding $CCHG tokens at lower prices and more convenient access during the presale.
4. RobotEra – Promising Metaverse Cryptocurrency on Presale Since Nov 2022
Also available to buy on presale right now, TARO is the native cryptocurrency of RobotEra’s shared multiverse-like virtual ecosystem. According to a report by McKinsey & C0., the metaverse has the potential to become a $5 trillion industry by 2030. RobotEra aims to make its presence felt in this popular niche, by competing with games like Decentraland and The Sandbox.
RobotEra will give players access to a virtual world dubbed the ‘Taro Planet’ – which will feature NFT Robots, NFT land plots, decentralized communities and community-wide competitions. Players take part as Robot NFT avatars – which are limited to a maximum supply of 10,000 NFTs. Land is then minted as NFTs on the platform and developed to mine resources, and build up the in-game world.
Players can earn money by hosting events within the ecosystem, staking TARO to earn passive income and even advertizing within the metaverse. Those staking TARO are also able to join the game’s DAO to earn voting and decision-making rights for the platform.
The RobotEra roadmap states that the project will build its alpha metaverse platform with support for VR gaming by Q1 2023.
This promising crypto asset is currently on its first presale stage – priced at $0.02 per token. Conducting three rounds, the TARO price will rise to $0.032 by the final stage. The presale is offering 270 million tokens in total to early investors – accounting for 15% of the total supply.
Read the RobotEra whitepaper and join the Telegram channel to learn more about this exciting new metaverse project. Adding to its promise, RobotEra is also an LBank Labs backed project, the incubator arm of LBank exchange.
Presale Started | Q4 2022 |
Purchase Methods | ETH, USDT |
Chain | Ethereum |
Min Investment | 1,000 TARO |
Max Investment | N/A |
5. Calvaria – Upcoming Card Battle Crypto Offering Promising P2E Rewards
Calvaria: Duels of Eternity is a captivating card battle game that immerses players in an action-packed gaming experience. With its one-of-a-kind P2E rewards system, this game offers endless entertainment and the chance for players to earn real-world rewards. Each card is imbued with a distinct character to enhance the game further, adding an extra layer of depth and richness to the gameplay.
Calvaria has gained significant traction in its funding campaign, surpassing $2.9 million USDT in raised funds. Additionally, the fifth phase of its presale has generated an overwhelming response from investors, with 95% of the tokens selling out in record time. Currently, $RIA tokens can be obtained at a reduced price of $0.032 USDT, making it an attractive investment prospect for those looking to capitalize on its growing popularity.
Players can experience thrilling gameplay on the Calvaria platform and earn additional revenue through its P2E rewards system while maintaining full autonomy over their in-game assets. The platform offers a variety of game modes and tournaments, providing players with a dynamic and diverse gaming experience.
Calvaria has formed strategic partnerships with exchanges such as KuCoin, Gate, and XT.com and continues to seek out additional exchange listings in the future. With its innovative blend of entertainment and P2E rewards, Calvaria stands out as a cutting-edge approach to gaming among its peers.
$RIA Tokenomics
The backbone of Calvaria’s ecosystem is its $RIA token, which runs on Ethereum’s blockchain. It enables users to become members of the project’s DAO and investors to earn additional returns through staking. According to Calvaria’s whitepaper, the total supply of $RIA tokens is capped at 1 billion, and only a small portion, 15%, is available for purchase during the presale phase.
As the presale phase is nearing its close, interested buyers should consider securing their tokens before the price increases. To stay up-to-date on the latest developments, users can join Calvaria’s Telegram channel.
6. Lucky Block – Emerging Crypto Casino with an NFT Competition Platform
Lucky Block (LBLOCK) started trading on public markets in early 2022 and quickly pumped to a market cap in the hundreds of millions, reaching an all time high of $0.0097 when it was listed on LBank, after previous having launched on PancakeSwap.
Lucky Block is building a global decentralized competitions platform that will be fairer and more transparent than the offerings from traditional incumbents, and can be taken part in by owning one of their NFTs or buying LBLOCK tokens.
Crypto has seen various types of gaming products over the years – betting decentralized apps (dApps) predated the DeFi explosion as among the first to take off. But as far as jackpot products goes Lucky Block is the first of a kind in a number of ways.
Then there’s the Lucky Block transaction fee. Every time the token is sold on a decentralised exchange, a fee of 12% is incurred, of which 4% goes to the lottery pool, 4% to the liquidity pool, 3% to a NFT and gaming royalty fund and 1% burn.
Rewards for all token holders provides revenue stream
To receive rewards, token holders must hold LBLOCK in a DEX wallet such as Trust Wallet or Metamask. Trust Wallet is probably the better pick because Lucky Block is built on the Binance Smart Chain and Trust Wallet is a Binance product, hence the better integration with swaps on the chain.
Lucky Block is an excellent example of a Web 3.0 product that has significant disruptive potential. Although it doesn’t have a Sharpe ratio because it only started trading two weeks ago, we think the risk-reward potential at these prices is strong. The world wide online jackpot betting market is valued at around $330 billion, according to QY Research Group.
7. Dash 2 Trade – Promising Crypto Analysis and Social Trading Platform
One of the most promising cryptocurrency for 2023 is Dash 2 Trade – a crypto trading signals and analytics platform that is powered by D2T – the native token which has also become a top crypto gainer. An ERC-20 token, D2T can be leveraged by Dash 2 Trade users to leverage all the available trading tools & features that will allow them to make well-informed trading decisions.
After launching on presale on the 19th of October 2022, D2T quickly rushed through all its presale stages to secure listings with well-known exchanges.
After witnessing an overwhelming response in its presale stages, the platform announced an over-funding round, followed by its listing on Gate.io on 11 January.
According to the Dash 2 Trade whitepaper, the project offers its trading protocol through a 3-level subscription model – a free tier, a starter tier and a premium tier. The latter two packages can be purchased at a monthly subscription price of 400 and 1,000 D2T, respectively. These packages will give investors access to a suite of trading tools such as on-chain analysis, presale project listings, live pricing alerts and auto-trading robots.
One of the unique features of Dash 2 Trade is the availability of social indicators – which scan the markets for socio-cultural price movements by analyzing an asset’s social media trends in real-time. A social trading platform, Dash 2 Trade gives D2T token holders access to online trading competitions where participants can stand a chance to earn D2T rewards.
Dash 2 Trade is hosting a $150,000 D2T giveaway, which can be accessed by investing in the tokens. Interested readers can also join the Dash 2 Trade Telegram channel to stay updated with all the new developments regarding this exciting new project.
8. IMPT – Promising Crypto Asset Rewarding Carbon Credit Burns
IMPT has already proven that it’s one of the most promising crypto because it quickly sailed through its presale stages and secured listings on top CEXs and DEXs like Lbank, Gate.io, Uniswap, and Bitmart. The reason investors are flocking to this platform is that it offers rewards while enabling positive contributions to the environment.
By investing in the IMPT token, investors contribute to popular brands that donate to environmental causes. Investors also receive IMPT tokens with every purchase they make with IMPT’s partners.
IMPT’s partners practice ESG investing, are environmentally conscious and determined to reduce their carbon footprint. But investors can do the same by using the social feature on this platform to track their personal impact on the environment. Investors making a positive contribution to the environment are rewarded points. Businesses also receive points by incorporating the IMPT platform into their operations.
Investors can convert their IMPT tokens into carbon credits, which can be minted into NFTs or burnt. Additional points are rewarded to investors that burn their carbon credits because they offset their carbon footprint. The IMPT whitepaper also states that investors can keep their NFTs as valuable assets that can be traded.
Get the latest updates about this project’s developments on the IMPT Telegram channel.
9. Tamadoge – Popular Meme Utility Coin Provided Investors 18x Returns During ICO
Billed as ‘the P2E Dogecoin’, Tamadoge (TAMA) is a meme coin with added utility as the in-game currency and rewards token for an upcoming NFT-based crypto game.
Followers of crypto will know sometimes the market is irrational and new meme tokens are the next cryptocurrency to explode rather than more academic projects focusing on blockchain technology or applications in industry.
This crypto with the most upside potential aims to capitalize on that while also having a use case to prevent the ‘pump and dump’ effect that saw e.g. Shiba Inu rise 52 million percent in a year then lose around 90% of its value.
Meme tokens have always delivered the biggest percentage gains and this is an opportunity to invest in a promising meme coin before it launches and has its initial hype cycle. Unlike some meme coins like Dogecoin, TAMA is also deflationary with a fixed maximum supply.
After raising $19 million during its presale, TAMA was released on OKX – a popular global cryptocurrency platform. Investors can invest in this meme token via the OKX centralized and decentralized exchange – making it available to all, regardless of any geographical barriers. After releasing on OKX at $0.03, TAMA reached an all-time high (ATH) of nearly $0.20 – which gave investors over a 5x price increase.
Join 23,000 members in the official Telegram group (admins will not DM you first) or find the white paper at the link below.
10. Battle Infinity – Global Metaverse Gaming Platform Surging 700% on PancakeSwap
In terms of upside potential, the most promising cryptocurrencies after those at presale is those at ICO – Battle Infinity has now sold out its presale, in record time raising 16,500 to hit its hard cap after just 24 days.
Early investment in an initial coin offering often results in a high ROI compared to buying an asset already mid bull-cycle. This strategy typically outperforms ‘buying the dip’ during a market correction also.
Battle Infinity is about to have its IDO (an ICO on a DEX) on PancakeSwap – allowing early investors to buy its native token IBAT, which will be the play to earn utility token in its upcoming metaverse game. IBAT is a BEP-20 token on the Binance Smart Chain with a 10 billion fixed supply.
Investors can take part on launch day with a MetaMask or Trust Wallet and a PancakeSwap account. IBAT is potentially another promising altcoin to watch in Q4 2022.
The early level of investor interest shown so far could see this be the next cryptocurrency to explode when its listed on more crypto exchanges including CEX listings – read more about the project and find the whitepaper on battleinfinity.io.
11. Solana (SOL) – Efficient Blockchain Platform Enabling Bulk Transaction at Low Fees
Solana is a decentralised Layer 1 blockchain that is highly scalable with transaction per second of up to 50,000. However, it is still experiencing teething problems that have led to a number of outages. Nevertheless its technology is gathering plentiful support.
The Pyth trading network supported by institutional trading houses in Chicago and New York is perhaps the most high profile success of the project. Its NFT and DeFi networks are expanding at pace too.
Despite a correction to a low of $25 in 2022, many investors are bullish on SOL long term. For those that need more information on how to buy Solana, see our guide.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
12. Polygon (MATIC) – Highly Scalable Decentralized Platform Boasting User-Friendly dApps
Polygon is designed to solve the problem of Ethereum’s lack of scalability in its current form. Its core is a composable modular system that makes it highly flexible. As such its Polygon SDK has become a favourite of blockchain developers.
It is a Layer-2 solution that has birthed infrastructures such as Plasma, Optimistic Rollups, zkRollups, and Validium as well as sidechains such as its Matic platform – MATIC is the project’s native token and ticker symbol.
Polygon may be one of the most promising cryptocurrencies of 2022 after its July Disney accelerator news which caused a large pump.
13. Avalanche (AVAX) – Enables Smart Contracts with Scalable and Efficient Functionality
Avalanche is another platform for launching DeFi applications and enterprise blockchain deployments in an environment of interoperability with a view to scalability.
Developers can get up to speed relatively quickly because of its composable approach to creating applications and custom blockchains. The protocol went from strength to strength in 2021, leaping into the ranks of the top coins.
While AVAX has corrected in 2022, many investors still consider it one of most promising cryptocurrencies of 2023 and later years, bullish in the long term.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
14. Near Protocol (NEAR) – Popular dApp Platform Focusing on Developers and User-Friendliness
NEAR uses a Proof-of-Stake consensus mechanism that features a sharding architecture to scale transaction throughput. Sharding can be though of a system that splits up the blockchain into distincy but connected parts to increase the efficiency of transaction processing.
As NEAR explains, it PoS sharding is unique in that it can “scale linearly with the number of shards, thereby having the ability to satisfy the demand for transactions as more and more users start to use NEAR”.
As with many cryptocurrencies, it’s also possible to earn interest on NEAR while holding it.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
15. Fantom (FTM) – Scalable and Secure for DeFi and dApp Investors Using aBFT Consensus Layer
Fantom is another Layer-1 blockchain, but hasn’t yet received the same sort of attention as Solana. It uses a single consensus layer to underpin multiple possible execution chains.
The end goal of the project is the fashioning of an ecosystem of execution layers aimed at catering for a multitude of use cases, all the while enabling scalable and cheap transactions on its novel Lachesis Protocol.
Read more about how to buy Fantom step by step or visit eToro at the link below where FTM is listed.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
16. Binance Coin (BNB) – Globally-Known Native Token of the Highest Volume Traded Crypto Exchange
Binance Coin is the native token of the Binance online exchange. It started life as a way of providing exchange customers with cheap trading fees. Binance is today the largeset crypto exchange.
But is is also much more than an exchange having launched the Binance Smart Chain and the Smart Chain token which is a wrapped version of BNB. BSC is a fast-growing environment for decentralised applications.
Above we chart the BNB/BTC pair rather than the USDT pair to illustrate how well Binance Coin is outperforming as an altcoin – i.e. outpacing Bitcoin in relative value.
If you want to delve a little deeper into which are the best crypto exchanges, read our guide to finding the one that fits your needs.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
17. Decentraland (MANA) – NFT Game Enabling Investors to Monetize Virtual Plots of Land
Decentraland is a decentralised, explorable, 3-D virtual reality platform, but without the need for VR goggles. It is built on the Ethereum blockchain.
The platform allows its users to take ownership of parcels of digital land, purchased with LAND tokens bought with the MANA native token. Users leverage NFT tech to create their own distinctive unique environments in a virtual world. Brands, companies and individuals have started flocking to its metaverse world.
For those interested in investing in promising NFTs rather than the most promising cryptocurrencies, see our NFT guides.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
How We Ranked the Most Promising Cryptos
Some of the factors and methodology we considered to rank the most promising cryptocurrencies are explained below:
Measuring Crypto Price Volatility
Let’s begin with how to measure risk when investors buy cryptocurrency. Price volatility is naturally the metric that springs to mind. If prices are prone to swing about erratically there is more risk to your capital.
When it comes to crypto, price volatility can scare off investors more used to the relatively sedate environment of the equity markets, although volatility there may pick up this year due to inflation and the rising risks associated with central bank policy missteps.
However, if an investor takes a longer-term view – say three years – then the risk-reward ratio is not quite as scary as it appears at first glance, or as media coverage might lead you to believe.
Over longer time scales a number of top cryptocurrencies stand out, and we reviewed some of those potentially most promising cryptocurrencies above.
Using the Sharpe Ratio to Analyse Crypto Assets
We will use a financial metric called the Sharpe ratio to measure how much return has been achieved historically for a given amount of risk. Clearly the Sharpe ratio, like all other financial metrics, cannot predict the future, but it does provide a helpful tool for comparison between different coins and between crypto as a whole and other asset classes.
Next, we want to look at the prospects for future earnings, which is a tough call in traditional asset classes, never mind crypto.
For future earnings, let’s treat crypto like other tech start-ups
Many crypto projects have little earnings to speak of, but in that respect they are arguably no different to a tech stock of a newish company still building its product and market penetration.
In fact investors are increasingly viewing the crypto world and tech stocks as similar, certainly if the price correlation between the two is anything to go by.
When the Nasdaq does well so too does the crypto complex – the two have, over the past few months, shown very high positive correlation, meaning their prices move in the same direction.
So if we should analyse crypto projects in a manner not dissimilar to how we treat tech stocks, then their technology and prospects for securing future market share in their addressable markets are key.
Therefore our selection has a bias towards blockchains that are solving the scaling problem, such as Solana, as well as those already generating profits, namely exchange tokens like BNB; those that make good use of the special characteristics of blockchain tech such as Lucky Block.
Others of our choices are essential to the ecosystem such as Avalanche, or have well-developed technology with a lead in markets that are likely to develop strongly over the near to medium term such as Decentraland and its NFT-powered metaverse technology.
With the exception of our first selection, Battle Infinity, which is a brand new crypto presale, we used a screener, to find crypto with the best 3 year Sharpe ratio and a reported market capitalisation of $5 billion of greater.
Another element to consider when choosing the most promising cryptos to invest in is that of climate change. With global temperatures making headlines and breaking records some crypto-hungry investors have started looking for the most energy-efficient cryptocurrencies in 2023.
So what is the Sharpe Ratio?
Invented by Nobel prize winning economists William Sharpe, the Sharpe ratio is a measure of risk-adjusted returns. So it analyses returns based on the amount of risk that was taken to achieve the given return.
Sharpe ratio assumes that the best assets are those that combine lower risk with high returns.
Using his version of the Sharpe ratio to measure risk-adjusted return, crypto analyst Willy Woo has shown that bitcoin – the oldest of all crypto assets – beats all other assets, including stocks and government bonds.
This is a good illustration of our earlier contention that investing in crypto – or specifically, investing in Bitcoin – is actually not as risky as common narratives suggest.
The ratio is determined by comparing the returns from an asset or portfolio of assets with the return from risk-free assets such as US Treasuries, and then dividing that product by the standard deviation of returns:
Sharpe Ratio = (Rp – Rf) / σp
p | The particular portfolio of financial assets |
Rp | The return expected from the portfolio |
Rf | The risk-free rate of return |
σp | The portfolio’s risk – the variance (sigma) is expressed as the standard deviation of returns |
We ran the numbers through a crypto screener, sorting for those with the best Sharpe ratio over three years.
A good Sharpe ratio figure is 1.00 and above, with 2.0 and above seen as very good.
An uneven distribution of returns can skew the results, which perhaps explains Solana’s very good score given its shorter lifespan. But with that proviso in mind, our table shows a range of 2.46 (Solana) to 1.46 (Crypto.com), so all have a good or very good Sharpe ratio for the most recent three-year period.
Crypto asset | Ticker | Price (USD) | Current Market Cap | ATH (USD) | % Down from ATH | Sharpe Ratio (3 years) |
Solana | SOL | 106.05 | US$33,677,407,907 | 259 | 38 | 2.46 |
Polygon | MATIC | 1.88 | US$14,074,253,155 | 2.9049 | 3 | 2.00 |
Avalanche | AVAX | 90.88 | US$22,290,019,055 | 146 | 44 | 1.92 |
NEAR Protocol | NEAR | 11.86 | US$7,521,143,487 | 20.39 | 4 | 1.87 |
Terra | LUNA | 53.95 | US$21,710,126,319 | 103 | 5 | 1.86 |
Fantom | FTM | 2.14 | US$5,443,126,540 | 3.4708 | 63 | 1.68 |
BNB | BNB | 415.57 | US$68,581,281,864 | 690 | 30 | 1.63 |
Decentraland | MANA | 3.20 | US$5,858,671,840 | 5.84 | 46 | 1.59 |
Chainlink | LINK | 17.66 | US$8,245,958,401 | 52.68 | 50 | 1.53 |
FTX Token | FTT | 45.17 | US$6,228,183,754 | 85 | 33 | 1.48 |
Ethereum | ETH | 3109.89 | US$371,429,419,830 | 4848 | 21 | 1.47 |
Cronos | CRO | 0.52 | US$13,128,401,387 | 0.9594 | 44 | 1.46 |
In the table above we find three exchange tokens. This is not too surprisingly because it is one of the best current use cases of a crypto token – to provide discounted fees to exchange users.
The Verdict
A common mantra in crypto investing is to keep a diversified portfolio to mitigate risk – in asking what are the most promising cryptocurrencies and reviewing several above, we’ve included both new and old cryptos. One of the best new crypto tokens is $MEMAG the native token of the Meta Masters Guild play and earn platform. $MEMAG could potentially explode in value as this revolutionary gaming project takes off. MMG is redefining gaming by offering interactive and engaging games that ensure players keep returning to the platform.
$MEMAG is available on presale now and early investors can lock in the lowest price. Don’t wait to check out this project – the price of $MEMAG will only increase as the presale goes on.
Meta Masters Guild - Next Big Crypto Game