In a world with rapidly changing financial technologies and investment opportunities, choosing the right cryptocurrencies to purchase is becoming a key issue for investors and crypto enthusiasts. The year 2024 promises a period of innovation, challenges, and new opportunities in the field of digital assets.
In this article, we review promising cryptocurrencies that can become stars in the investment market this year. Let us look at the trends and factors that influence the choice of assets and which projects should be kept in the spotlight in search of successful investments in 2024.
Bitcoin (BTC)
The head of Bitcoin is halving and the likely approval of first-ever spot exchange-traded funds (ETFs) for Bitcoin in the United States. These two key events support an optimistic forecast of the exchange rate for the first cryptocurrency. History shows that halvings bring new benefits to Bitcoin holders. The approval of a spot Bitcoin ETF in the United States, in turn, attracts capital from institutional investors to the market. Bitcoin, considered a digital gold, continues to attract large companies, including Tesla.
Ethereum (ETH)
The Shanghai update, which took place in April 2023, completed the transition of Ethereum from Proof-of-Work to Proof-of-Stake. At the same time, this does not cause a special reaction among investors. Subsequently, the ether began to fall together. The process continued until October when restoration began. As a result, by December, the coin had grown, but even in relation to Bitcoin, its growth was relatively small. ETH ranks second in terms of capitalization by a huge margin from third place (Tether is more than three times smaller).
The last two halvings of Bitcoin (in 2016 and 2020) show that, for a year and a half after each, the ether grew by more than 12,000% and 2,000%, respectively. Of course, in 2024, it will be rather rash to wait for such figures; after all, in July 2016, the coin cost was about $ 10. By the end of 2023, approximately $ 2,400. However, such statistics allow us to consider the rapid growth of the ethers.
This coin may also be supported by the Dencum update, which is expected in the first quarter of 2024. The SEC's absence from the blacklist strengthened the ETH's position. Recall that many PoS coins came under the SEC surveillance as illegal securities.
Solana (SOL)
The Solana project demonstrated its resilience by surviving the collapse of the FTX crypto exchange. The demand for Solana tools and the rapid recovery after the collapse of FTX confirm its viability.
XRP
XRP remains hopeful in resolving the conflict with the SEC. After recognizing the legality of private coin sales in the summer of 2023, many expect that the resolution of this conflict will be an impetus for the growth of XRP.
Polkadot (DOT)
Polkadot is an open-source multichain sharding protocol that facilitates cross–chain transfer of any data or asset type, not just tokens, and thus ensures the compatibility of a wide range of blockchains with each other. DOT tokens provide Polkadot users with full control over the network.
Dogecoin (DOGE)
Dogecoin, beloved by Elon Musk, can receive support from integration into social network X (formerly Twitter) owned by the businessman.
Toncoin (TON)
Toncoin, based on Telegram’s achievements, became an object of interest after the developers of the messenger abandoned the project. Telegram's support and use of Toncoin in the messenger's own services make it attractive to investors.
Uniswap (UNI)
Decentralized exchanges such as Uniswap may gain popularity due to regulatory pressure on traditional exchanges. The growing demand for decentralized exchange supports the growth of the UNI token.
Celestia (TIA)
Interest in modular blockchains such as Celestia may lead to the growth of the project's native token.
Axie Infinity (AXS)
In the Play-to-Earn (P2E) segment, blockchain games such as Axie Infinity may come to life in a bull market.
Shiba Inu (SHIB)
The community around the Shiba Inu memecoin continues to support it, and under favorable conditions, it can repeat its growth.
Cosmos Hub (ATOM) ⚛
Cosmos Hub is a blockchain that is part of the Cosmos Network ecosystem. It was the first public blockchain built based on the Byzantine Fault Tolerant algorithm and runs on the Proof-of-Stake protocol.
The main Cosmos Hub token is ATOM, which is used to pay transaction fees and participate in management.
SUI (SUI)
Sui is a first–level blockchain with a low latency and high throughput. Owing to the instant completion of transactions, Sui becomes a contender for leadership in on-chain scenarios such as DeFi and GameFi.
Cardano (ADA)
The year 2023 has become quite successful for smart contract platforms. Almost all had grown at least twice. Solana became the leader, adding about 900%. However, Cardano's performance is much more modest at approximately 130%. This makes SOL a favorite of 2024. The demand for cryptocurrencies on smart contract platforms will remain high. In favor of Cardano is the simple fact that, according to the activity of developers on Github, the project did not fall out of the top five throughout the year. In early October and December 2023, the Cardano blockchain became the leader in this regard.
Chainlink (LINK)
Chainlink is the number of blockchain oracles (a system that allows smart contracts to be executed by entering/releasing data into the real world). There is a huge margin for competition. As of January 1, it was the 14th cryptocurrency by capitalization. At the same time, the closest rivals, the oracles, are not in the top 100. If there is no information in the blockchain to execute smart contracts, then people are forced to use oracles, and Chainlink will remain the most popular for a long time. In addition, the advantages of the platform include its constant development. For example, developers promise the introduction of artificial intelligence.
Litecoin (LTC)
Litecoin is inherently as close as possible to crypto gold and bitcoin. However, it is just as far away in popularity and prevalence. In 2023, crypto silver was halved, which did not increase the price of LTC. A bullish trend will likely occur by 2024.
In addition, halving Bitcoin should give a positive impetus not only to BTC but also to the entire cryptocurrency market. Litecoin has all the same advantages as Bitcoin: limited emission, which means deflationary nature, relative popularity (17th place in capitalization), and long history (cryptocurrency appeared in 2013). Most importantly, if 2023 was a super-successful year for most cryptocurrencies, then crypto silver would add only 6.7%. Thus, we can expect that Litecoin will catch up with competitors in 2024 and surely overtake someone.
Conclusion
This compilation of cryptocurrencies does not ensure profits due to the highly unpredictable economic conditions, and it is impossible to predict all potential outcomes. The list offers a general view of opinions and potential growth factors for each cryptocurrency but does not promise success.
There are risks associated with investing in cryptocurrencies, and it is important to make investment decisions based on thorough analysis and a good grasp of the market. Furthermore, some cryptocurrencies will probably offer significantly higher profits, but this also means that risks will increase substantially.
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