Top 3 Cardano-Based Altcoins with Potential for Significant Returns

Several tokens within the Cardano ecosystem, including Minswap (MIN), Indigo (INDY), and Liqwid (LQ), have the potential to offer substantial returns to investors in 2024.

Despite Cardano’s (ADA) token not meeting expectations in terms of performance, its ecosystem has seen noteworthy growth. This bullish trajectory began last year and has persisted into the current market phase.

In November, The Crypto Basic reported that the Total Value Locked (TVL) on Cardano reached 669 million ADA, marking a new all-time high. This figure would equate to over $2 billion at ADA’s peak price of $3.10.

As the Cardano DeFi ecosystem continued its significant expansion, it surpassed Bitcoin in DeFi TVL, becoming the 11th largest blockchain by TVL. Cardano’s DeFi TVL grew to $240 million, outpacing Bitcoin’s $237 million.

This growth is a result of capital inflows into Cardano-based projects, which continue to attract investor interest. Consequently, market observers anticipate significant price growth for tokens associated with these projects.

Minswap (MIN)

Minswap operates as a multi-pool decentralized exchange (DEX) on the Cardano blockchain. It differentiates itself by serving as a community-governed platform, facilitating token swaps with reduced costs and improved efficiency.

Minswap was recognized with the Best Cardano DeFi/DEX Project Award at the 2023 Cardano Summit. The protocol experienced a notable surge in TVL last February, reaching a high of 179 million ADA in July 2023.

Despite a slight decrease, Minswap’s TVL remains above 160 million ADA, valued at $96.94 million at current rates. This positions Minswap as the second-largest DeFi protocol on Cardano by TVL.

Holders of MIN, Minswap’s native token, enjoy various benefits such as governance voting and staking rewards. MIN has already performed well, rising 58% since last November to $0.0355.

Indigo (INDY)

Indigo operates as a decentralized, non-custodial protocol for synthetic assets. Through smart contracts, Indigo allows users to mint fully collateralized synthetic assets known as iAssets. These iAssets mirror real-world assets, providing users with exposure without the need to hold the actual underlying assets.

Since its launch, Indigo has attracted significant capital, with its TVL recently reaching $125 million. INDY, its native token enabling governance participation, currently boasts a market cap of $10.88 million, indicating further growth potential.

Although INDY’s performance has been modest since last year’s third quarter, investors remain optimistic. The token has declined 20% year-to-date, currently trading at $2.11. However, as the protocol gains traction, INDY could experience a rebound this year.

Liqwid (LQ)

Liqwid emerges as one of the fastest-growing Cardano protocols deserving attention in 2024. The protocol allows users to borrow and lend tokens, with lenders providing liquidity to pools and minting qTokens. Borrowers can then borrow against their qToken balance.

Liqwid reached a new TVL all-time high last month, with its total value locked surging to $68 million on March 5, equivalent to 88 million ADA. As of press time, Liqwid’s TVL has decreased to $49.75 million, making it the third-largest Cardano-based protocol.

Its native token, LQ, has also underperformed since late last year, dropping from a high of $5.4 in December 2023. Nevertheless, LQ still maintains a market cap below $1 million, indicating significant room for growth. The token currently trades at $2.20.