Will This Be the Next Crypto to Explode?

Key Points

• Over the past 90 days, nearly one-half of the top 100 cryptocurrencies have outperformed Bitcoin.

• The expanding growth potential of the Ethereum blockchain ecosystem has been a popular investment narrative over the past 90 days.

• Ondo is an Ethereum-based cryptocurrency that soared in value at the end of last year, and could do the same this year.

• 10 stocks we like better than Ethereum ›

Approximately one-half of the top 100 cryptocurrencies (as ranked by market cap) have outperformed Bitcoin (CRYPTO: BTC) over the past 90 days. During that time period, Bitcoin is up an unremarkable 2%. In comparison, a number of top altcoins have soared 75% or more.

So which is the next crypto that's ready to explode in 2025? To answer that question, it's helpful to understand which altcoins are currently soaring in value, and what they all have in common. Let's take a closer look.

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Which cryptocurrencies are outperforming Bitcoin?

Right now, 45 altcoins are beating Bitcoin soundly. The list of top performers includes a few meme coins, such as Pudgy Penguins (CRYPTO: PENGU), which is up a head-spinning 148% over the past 90 days on August 26. The good news is that investors can safely ignore these meme coins due to their mercurial, volatile nature. If anyone can explain why digital penguins have gone viral over a long, hot summer, please tell me.

The name that really jumps off the list of top performers is Ethereum (CRYPTO: ETH), which is up 75% over the past 90 days. The world's second-largest cryptocurrency is attracting the attention of both retail and institutional investors, due to its recent explosive run.

Image source: Getty Images.

Moreover, several top decentralized finance (DeFi) cryptocurrencies have turned in some stunning performances over the past 90 days. For example, both Chainlink (CRYPTO: LINK) and Uniswap (CRYPTO: UNI) are up 55%. Not to go too deep into the weeds here, but both of these are ERC-20 tokens, meaning that they were designed to run on the Ethereum blockchain.

Both of these cryptocurrencies are direct plays on the growth potential of decentralized finance, and especially on the surge in new activity happening within the Ethereum blockchain ecosystem. From my perspective, these DeFi tokens are exactly the sorts of cryptocurrencies that can explode later in 2025.

Based on the above, it's possible to put together a convincing investment thesis for the second half of 2025. The spate of new crypto legislation coming out of the United States, combined with the growing pace of crypto adoption around the world, is leading to new opportunities for DeFi tokens, and especially those that run on top of the Ethereum blockchain. If any cryptocurrency is going to pop soon, it will likely be one of these.

Meet Ondo, the crypto that could explode soon

It may be too late to get in on Ethereum, but there are some intriguing options lurking elsewhere within Ethereum's blockchain ecosystem. One that has my attention is Ondo (CRYPTO: ONDO). It's currently ranked No. 38 among all cryptocurrencies, with a nearly $3 billion market cap.

Ondo is also an ERC-20 token (just like Chainlink and Uniswap), but is probably off the radars of most investors. It is only down 2% over the past 90 days, so it's basically running neck-and-neck with Bitcoin.

What's tempting about Ondo is that it's a direct play on all the goodness happening within DeFi. It's a token primarily favored by institutional investors, and promises to bring "institutional grade" finance to crypto.

Ondo is primarily used for real-world asset (RWA) tokenization, which is one of the hottest investment ideas within DeFi right now. This refers to the process of transforming real-world assets (such as stocks and bonds) into blockchain assets.

This cryptocurrency also has the support of World Liberty Financial, the crypto venture affiliated with the Trump family. In February, World Liberty Financial scooped up nearly $500,000 worth of Ondo tokens.

Moreover, I've already seen a recent glimpse of the amazing upside potential of Ondo. At the end of last year, Ondo more than tripled in value and hit an all-time high of $2.14. Given that Ondo is now trading for around $1, this implies that Ondo could have the potential to double in value, in order to regain its all-time high. Asking for Ondo to do much more than that, though, might be too much.

Picking winners in crypto

Be aware: It is notoriously difficult to pick the next big winner in crypto. Investment narratives fall in and out of favor. Meme coins come and go, and top cryptos can rise or fall, often based on no apparent reason. Risk and volatility are very much an issue any time you venture beyond Bitcoin or Ethereum.

But if you're willing to take on the risk, then it might be time to look for coins that haven't popped yet. The best investment opportunities are those that are linked to the Ethereum DeFi investment narrative. This narrative jas already worked with Chainlink and Uniswap, both of which are up big over the past 90 days.

Could Ondo be next?

Should you invest $1,000 in Ethereum right now?

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Dominic Basulto has positions in Bitcoin, Chainlink, Ethereum, and Ondo. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, Ondo, and Uniswap Protocol Token. The Motley Fool has a disclosure policy.