3 High-Growth Penny Cryptocurrencies To Buy

Last Updated November 24th 2021
7 Min Read

Most penny cryptocurrencies are highly volatile, and this can make it challenging to choose potential big winners. That said, once one finds the good ones, the potential returns are worth it. 

It’s for this reason that we spend time analyzing penny cryptocurrencies, trying to find hidden gems. With the huge potential that most penny cryptocurrencies have, we are sure that if one or two of them makes a good run, it can significantly impact our overall portfolio.

After a thorough analysis of different cryptocurrencies, we find these three high-growth penny cryptocurrencies worthy of buying today. 

 

Big News In 2022

The first high-growth penny cryptocurrency on our list is Dogecoin (DOGE).

Dogecoin is a meme coin and was considered a joke for a very long time. However, since Elon Musk took an interest in Dogecoin back in 2020, a lot has changed. 

From 2020 to April this year, Elon Musk fueled Dogecoin with his tweets and increased it by 12,000%. While it has since slowed down in growth, there is still a lot to look forward to going into the future.

For starters, Elon Musk is still heavily involved with the project, and earlier this year, announced that Dogecoin would be used to finance a moon mission. The mission, dubbed Doge-1, is expected to take place in Q1 of 2022, making Dogecoin a potentially big winner in 2022. 

That’s because the day the mission will be confirmed, FOMO could easily push Dogecoin to $1 or more in a matter of days. FOMO will be driven by the fact that space missions always draw media attention and that this is an event by SpaceX, Elon Musk’s company. 

Aside from the Doge-1 mission, Dogecoin is fundamentally much better at this point than it has ever been in history. Dogecoin is one of the oldest cryptocurrencies in crypto, yet for many years had no developer team. It was just floating around thanks to its strong developer team. 

Following Elon Musk’s Dogecoin pump, Dogecoin now has a developer team, and its community has gotten much stronger. Corporations have also started taking Dogecoin more seriously, and it is now used for payments by more than a dozen significant organizations. It’s an indicator that Dogecoin’s intrinsic value is growing, which makes it a solid growth penny cryptocurrency to buy today. 

That said, we are not lost to the fact that 5 billion new Dogecoins enter circulation every year. Its inflationary nature poses a risk to long-term value appreciation. This could be why most analysts are giving it conservative price projections relative to most other meme coins. For instance, according to Coin Price Forecast, Dogecoin can grow by 22% in 2022. 

However, being one of the biggest meme coins out there, and with a big event coming up, I believe tokenomics matters little. If tokenomics were that important, Dogecoin would not have outperformed Bitcoin in the 2020/21 bull rally that ended in April.

As long as the hype is strong, prevailing demand could cancel out the increase in supply. Besides, Dogecoin’s inflationary nature could play out to its advantage long term.

That’s because for a currency to work optimally in everyday transactions, there has to be an incentive to spend. For instance, it is easier for someone to buy food in Dogecoin than for them to do the same with Bitcoin. 

Due to Bitcoin’s deflationary nature and the expectation of value growth, spending would be counterproductive. For an inflationary cryptocurrency like Dogecoin, the incentive to spend is there. This is likely to drive up the adoption of Dogecoin and could play a role in driving up the price over time. 

Essentially, while there is a risk of price stagnation, we expect Dogecoin to return a good ROI over time. 

Check Out: What Might Happen If You Invest $100 In Dogecoin (DOGE) Today?

A Consistently Trending Meme Coin

The second penny cryptocurrency that we are finding attractive at the moment is Shiba Inu (SHIB).

Shiba Inu is a meme coin that was created to hitch-hike the Dogecoin wave of 2020 but has since become a top cryptocurrency in its own right. It even recently surpassed Dogecoin by market capitalization though it has since slowed down a little bit. 

Since it launched in August 2020, Shiba Inu has given investors a return that no one would have ever imagined possible in just a year. Between its launch in 2020 and today, Shiba Inu is up by over 28,000,000,000% and still gaining in value. This means anyone who threw in just a couple hundred dollars at SHIB a year ago is now a multi-millionaire. 

Despite its massive price rally, we expect Shiba Inu to keep outperforming the market going into the future. One of the pointers to such a scenario is Shiba Inu’s tokenomics. 

Unlike Dogecoin, Shiba Inu is deflationary by design. Fees generated in transactions are burned, which means, as more people use SHIB, the supply will get smaller. Then there is the fact that earlier this year, something unplanned happened and helped boost Shiba Inu’s tokenomics. 

Shiba Inu had allocated 50% of the total supply to Vitalik Buterin. Buterin then decided he wanted nothing with the project and burned 90% of the SHIB tokens allocated to him. He then donated the remaining 10% to India to help the country fight COVID-19. 

While the donation caused SHIB to dump, the 90% he burned caused a major supply shock to Shiba Inu. 

Currently, Shiba Inu only has 50% of the original one quadrillion token supply, which has helped it maintain upside momentum in 2021. For instance, in October, Shiba Inu rallied by 1100% beating most major cryptocurrencies that were trading sideways at the time. 

Besides Shiba Inu’s tokenomics, we are betting on Robinhood to trigger a SHIB pump in 2022 possibly. For months now, there has been an ongoing push to have Robinhood list SHIB. While this exchange has largely ignored these petitions, at the end of the day, it is a business, and this is an opportunity to make money.

If Robinhood yields to the pressure and lists SHIB, the rally it could trigger could easily see Shiba Inu do a couple of thousand percentages in gains within 2022. 

Analysts seem to be strongly bullish on Shiba Inu’s growth prospects as well. According to an analysis by Coin Price Forecast, Shiba Inu could gain by 600% by the end of 2022. 

However, even though we are optimistic about Shiba Inu, we are alive to the fact that it is still a meme coin and could end up stagnating or even losing value. 

That said, with the token burn, a strong community, and the potential of being listed on Robinhood, we consider it a worthwhile high-growth penny cryptocurrency to buy now and add to our portfolio. 

Don't Miss: Why We Think Shiba Inu Could Be The Next Big Thing

The Multi-Billion-Dollar Sports Market 

Finally, we are finding Chiliz (CHZ) to be a potentially profitable penny cryptocurrency to buy today. Chiliz is a fintech blockchain that is focused on helping sports teams better engage with their fans. Through the Chiliz blockchain, sports teams can come up with fan-tokens that give fans a chance at determining certain aspects of governance for their favourite sports teams. 

One of the reasons we find Chiliz a compelling buy is that there is an actual use case. Unlike many upcoming cryptocurrencies based on speculative use cases, some of the biggest sports teams in the world are already using Chiliz. Some of them are Barcelona, Manchester City, and PSG, among others. 

We also like the fact that there is a motivation for sports teams to use Chiliz. Unlike in the past, most sports teams are now owned by individuals or companies. This has reduced the level of connection that such teams have with their fans, which may counterproductive long-term growth.

Evidence of this disconnect between fans and teams is in the backlash that the proposed JP Morgan Super League in Europe received from fans. It had to be canceled in the end. This cannot happen with fan tokens, as every fan is given a voice on how their favourite team runs. 

Chiliz also has the potential to help teams unlock new sources of value. For instance, by issuing fan tokens that can be sold in the open market, a sports team can better understand its true value based on its global fan base's value to the token.

Analysts seem to have similarly high expectations for Chiliz too. A market prediction by Coin Price Forecast gives Chiliz a potential price increase of 54% by the end of 2022. The analysis also expects Chiliz to cross the $1 mark by the end of 2024. 

Based on these predictions and the strength of its use case, we find Chiliz a high-growth penny cryptocurrency to buy today. 

Read Also: Chiliz Price Predictions

eToro – The Best Platform to Buy Cryptocurrencies

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Read More:

What Are The 10 Most Undervalued Cryptocurrencies To Buy?

9 Best Cheap Cryptocurrencies to Buy Under $5

What Is The Best Cryptocurrency To Invest In

2 Cheap Cryptocurrencies To Buy Today

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.