5 Penny Cryptocurrencies To Watch In 2023

Here are the 5 best penny cryptocurrencies to keep your eyes on. 

Last Updated December 29th 2022
7 Min Read

Penny cryptocurrencies have always been an alluring group of digital assets in the crypto market. Unlike major cryptocurrencies with huge market capitalization, these penny cryptos might be a riskier investment. But if you have a researched investment strategy, some of the penny cryptocurrencies could be the best way to ensure lucrative returns in the future. In fact, Dogecoin, one of the most popular penny cryptocurrencies, has experienced YTD gains of a whopping 2800%.

After the tremendous growth of Bitcoin, Ethereum, and several other digital assets, the crypto space has turned into a trillion-dollar market. As a result, for the past few months, cryptocurrencies have been the talk of the market. 

Bitcoin and Ethereum, the larger scale coins with huge market capitalization, are some of the obvious choices for beginner investors. But there are several other cheaper cryptocurrencies with more growth potential that are worth adding to your portfolio.

Several altcoins are available today for pennies on the dollar and have just as much more growth potential than any larger scale coins.

Here are the 5 best penny cryptocurrencies that are worth watching in 2023. 

5 Penny Cryptocurrencies To Watch In 2023

Recently we've stumbled across 5 cryptos but potentially explosive penny cryptocurrencies that we are keeping a close eye on. Let's take a look.

1. Ripple (XRP)

XRP is the native token of the Ripple network, a payment technology introduced in 2012. It was designed to make international money transfers faster, cheaper, and easier. XRP began 2021 at a price of around $0.22. But after a significant rally and massive interest from financial institutions, the price jumped up to its all-time high of $1.8 in April. 

The significance of Ripple with other cryptocurrencies is its unique consensus ledger to perform transactions. It offers a steady transaction time of almost 5 seconds. Further, XRP has a relatively low cost compared to its competitors. Each transaction costs 0.0001 XRP. With XRP trading at $0.667801 as of writing, it’s just a fraction of a dollar.

Therefore, Ripple can become a viable alternative for payment platforms like SWIFT and become the preferred method of choice for international money transfers. Moreover, thanks to its massive growth, XRP can be bought on any major exchanges globally like WazirX, Coin Switch, Zebpay, Coinbase, Binance, etc. 

The primary fuel behind Ripple’s growth is its array of partnerships with several established banks and financial organizations. However, the team behind Ripple is currently working to win the battle against the SEC lawsuit. Experts believe it’s likely to reach a favorable outcome in the lawsuit, after which it will begin its bullish rally. 

Thanks to the support from the magistrate Sarah Netburn, Ripple prices soared over 150% earlier this year. She stated, "In my understanding, XRP has not only currency-like value, but also usability, and that usability is different from bitcoin or Ethereum.”

However, Ripple is a penny cryptocurrency worth watching this year because there is a large company behind the token, solely focused on promoting XRP and continuously enhancing the Ripple ecosystem.

Check Out: 5 Reasons Why Ripple Could Double Your Money

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Stellar Lumens (XLM)

Stellar is a penny coin worth watching this year as it is quickly rising in the ranks. It is an open-source blockchain network-driven with a mission to create equitable access to the global financial system. The utility token Lumen has gained much traction lately as it is used for staking and is a unique payment method for all the services the system provides. 

Some impressive partnerships caused the price of XLM to skyrocket in 2021. Stellar has been able to stand the test of time and three bear markets since its inception with long-term partnerships with companies like IBM and Franklin Templeton. The team continues to widen its reach in 2021, entering into a coalition with several institutions like TransferTo, Vonovia, etc.

Moreover, Ukraine’s government has also chosen the blockchain network as a platform for building a Central Bank Digital Currency (CBDC). This single event has boosted XLM’s share price to over 75% earlier this year. 

Stellar also offers highly reliable and secure smart contracts, unlike Ethereum. The asset has successfully positioned itself as a preferred choice for large transaction networks like banks, with its faster and cheap transaction process. Therefore, it aims to become an open financial system that gives people of all income levels equal access to low-cost financial services. 

Read Also: Pros and Cons of Investing in Stellar, Will It Be a Millionaire Maker?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Dogecoin (DOGE)

Dogecoin has been one of the social media’s favorite topics of discussion over the past few months. More than just a meme cryptocurrency, it has emerged as one of the favorites of tech giants, social media influencers, and bigwigs across verticals. With the consistent growth of over 18,400% this year, it hit an all-time high of $0.47 in May. 

On top of celebrity endorsements, the token also has several real-world applications. It is known for its ability to transact small amounts of money instantly with low trading fees. Its blockchain, minting procedures, and Proof-of-Work process are pretty stable, efficient, and highly secured. Dogecoin can also be exchanged for goods and services at platforms where it is accepted. 

With the crypto market buzzing around the sustainable nature of cryptocurrencies, energy-efficient penny cryptos like Dogecoin are worth watching in 2023. It uses the Scrypt mining algorithm that reduces energy consumption and makes it environmentally friendly. 

Finally, the vibrant community behind Dogecoin has fueled the token’s price to new heights, positioning itself as a potential investment option. Several companies like the Dallas Mavericks, the cryptocurrency ATM operator CoinFlip and Bitpay, offer DOGE now as a payment method. 

The celebrity endorsements, real-world utility, and strong partnerships are enough to add DOGE to the list of best penny cryptocurrencies to keenly watch in 2021, especially when it's trading at $0.234997.

Check Out: Why Dogecoin Will Skyrocket 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

4. Algorand (ALGO)

This public blockchain platform utilizes a unique pure Proof-of-Stake network. It works to ensure that a secure, scalable, and decentralized network is available for all to access. The network's advanced technology offers immediate transaction finality while preventing forking. 

Another prominent feature is its ability to decrease computational transaction costs. Generally, crypto transfers require a user to pay standard transaction fees. This is used to compensate validators and miners involved in the transactions. On the contrary, Algorand offers a secure, decentralized, and fast platform with a meager transaction fee. 

There are three significant reasons why ALGO is one of the penny cryptocurrencies to watch in 2023. The first reason is its utility as a platform for stablecoins as they are increasingly integrated into traditional financial channels. The second reason is Algorand’s plans to expand to DeFi with several partnerships and dApp creation. Finally, it has the potential to earn a yield by just holding tokens in a network wallet. 

Algorand was primarily created to solve the blockchain trilemma with its unique and scalable architecture. It offers a solution without completely negating the traditional benefits of blockchain technology. Algorand is quickly emerging as a preferred option for stablecoin issuers and DeFi traders as they are looking for a viable alternative to Ethereum due to its high gas fees.

Among other notable partnerships, some names worth mentioning are with the digital platform for institutional short-term money market trading Instimatch Global and the cryptocurrency asset security platform Curv.

Don't Miss: Algorand Price Prediction – Will ALGO Rise in Value? 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

#5 Polygon (MATIC)

Primarily known as Matic Network, Polygon is an interoperable and scaling network for building Ethereum-compatible blockchains. It seeks to address some of Ethereum’s major limitations like its throughput, poor user experience, and lack of community governance by deploying a novel sidechain solution. 

The MATIC token is one of the best penny cryptocurrencies to watch in 2021 as it is currently trading at $1.16 and serves a variety of purposes in the Polygon ecosystem. It is used as a governance token and further contributes to security through staking as well as paying gas fees. 

Many developers and Ethereum users are integrating Polygon to help their Dapp complete transactions quickly. As of now, there are over 4000 decentralized applications on Polygon. 

This penny cryptocurrency has a unique four-layered system. The first is the Ethereum layer, the second is the security layer, the third is the Polygon network layer, and finally, the execution layer. Each layer plays a significant role in how the platform works. 

Some notable protocols that utilize Polygon include decentralized lending platform Aave, decentralized exchange SushiSwap, and multi-chain yield optimizer Beefy Finance. 

Moreover, Decentraland, Neon District, Vulcan Verse, Mega Crypto Polis, Valuables by Cent, Crypto Skulls, Whale Street, and several other NFT and gaming platforms have also been integrated with the Polygon network. 

Finally, Polygon can handle up to 65,536 transactions per block on each sidechain. That means it processes around 65,000 transactions per second (TPS). The asset also has several partnerships in the process thanks to its customized version of the Plasma Framework built on the proof-of-stake (POS).

Read Also: Why Polygon Is Going To Explode

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Bottomline

After a major market crash and consequent inflation, several cryptocurrencies are set to begin a fresh bull cycle in 2021. One thing that’s common to all these cryptocurrencies is their strong support and interest from some of the biggest companies, banks, and institutions worldwide. Therefore, the future looks bright for these cheap digital assets that the best penny cryptocurrencies to watch in 2023.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.