Three Potential Cryptocurrency Investments Amid Market Uncertainty

The current state of the crypto market is undeniably challenging. Many cryptocurrencies, including established names, have faced significant declines. Investors are now seeking value in a market marked by uncertainty, particularly around tariffs.

Despite the prevailing pessimism, opportunities still exist. Here are three cryptocurrencies that may outperform in the latter half of 2025.

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1. Bitcoin

First on the list is Bitcoin (CRYPTO: BTC). Although it has plummeted nearly 25% from its peak in January and is down 10% year-to-date, Bitcoin managed to remain resilient since “Liberation Day” on April 2. Over the last 30 days, it has seen a modest gain of 1%.

This cryptocurrency appears to have navigated through the worst turmoil. With the dollar weakening, Bitcoin is increasingly attractive as a safe-haven asset and store of value. Although it may not surpass gold immediately, it possesses significant upside potential as the economy adjusts to new conditions.

Image source: Getty Images.

Moreover, the Biden administration has demonstrated a supportive stance on crypto. Anticipated developments in Bitcoin could further influence its value, including speculation that tariff revenues could be used to purchase Bitcoin for the Strategic Bitcoin Reserve.

2. XRP

For those open to higher risk, XRP (CRYPTO: XRP) might be worth considering. Currently priced around $2, XRP has remained flat this year after experiencing substantial gains earlier.

However, XRP has several potential catalysts for growth later this year. Most notably, the anticipated launch of a spot exchange-traded fund (ETF) is likely, with numerous firms having filed applications with the Securities and Exchange Commission (SEC), which has signaled a more favorable attitude toward the crypto sector recently.

Additionally, regulatory uncertainties surrounding XRP have greatly diminished following the SEC’s dismissal of its long-standing lawsuit against Ripple, the company that issues XRP. As a result, XRP could be positioned for a resurgence.

3. Ondo

Last on the list is Ondo (CRYPTO: ONDO). This cryptocurrency is a highly speculative investment priced below $1, having previously peaked at $2.14 after the 2024 elections. Currently, it has fallen 40% year-to-date and trades for under $1.

Ondo represents a direct bet on the growing trend of real-world asset (RWA) tokenization. This process involves turning tangible assets, such as stocks and bonds, into digital tokens on the blockchain, with estimates suggesting RWA tokenization could become a multitrillion-dollar market by 2030.

Although I was unfamiliar with Ondo until recently, it is associated with World Liberty Financial, a crypto firm linked to the Trump family, potentially enhancing its visibility in Washington. Depending on one’s political perspective, this could be seen as an advantage.

Considering the recent collapse of Mantra, an RWA token that lost 90% of its value in hours, conducting thorough due diligence is critical. So far, I appreciate Ondo’s fundamentals. Notably, its top team members are veterans from Goldman Sachs with expertise in digital assets. The recent Ondo Summit in New York City also garnered attention from major organizations like Fidelity Investments, BlackRock, and Franklin Resources, discussing the future of “Wall Street 2.0.”

The Importance of Portfolio Diversification

Given that Bitcoin constitutes over 60% of the crypto market capitalization, a good strategy is to allocate a significant portion of one’s crypto investments toward Bitcoin. However, instead of leaning solely on Bitcoin—a common viewpoint among Bitcoin maximalists—consider diversifying with additional coins like XRP and Ondo. Keep in mind that as you explore higher-risk investments, thorough research is critical.

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Dominic Basulto has positions in Bitcoin, Ondo, and XRP. The Motley Fool has positions in and recommends Bitcoin, Goldman Sachs Group, and XRP. The Motley Fool recommends Ondo. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.