2023 turned out to be a good year. The market capitalization of the crypto market has more than doubled, from $830 million to $1.73 billion. What coins are worth considering in 2024? Let's share our opinion.
The first coin that attracts the attention of investors and crypto enthusiasts will remain Bitcoin. There are many factors in favor of this statement.
The first is a positive reputation. Bitcoin dates back to 2009, remaining the oldest and most proven cryptocurrency.
The second is the greatest prevalence. Let's turn to the Bitcoin dominance indicator, which reflects the percentage of market capitalization that BTC holds relative to other coins. At the beginning of 2024 it is about 51%, more than half of the market. In fact, in the crypto industry there is still Bitcoin, and there is everyone else..
The third reason that allows crypto enthusiasts to consider the largest cryptocurrency as an investment object is the expected reduction in the US Federal Reserve rate. The American central bank does not specify when this will happen. However, as soon as monetary policy changes, bank deposits will become cheaper and people will regain their appetite for risk..
The fourth point is the likely approval of spot Bitcoin ETFs in the United States.
The fifth , but not the least important, factor remains the upcoming halving in April. The reward for miners will be halved, thus the supply of BTC will increase at a slower pace. And then everything should be according to economic classics: the lower the supply, the higher the demand and price.
The April 2023 Shanghai update completed Ethereum's transition from Proof-of-Work to Proof-of-Stake. However, it did not cause any special reaction among investors.. And a little later the airwaves began to drop altogether. The process continued until October, when restoration began. As a result, by December the coin grew, but even in relation to Bitcoin its growth turned out to be relatively small.
With all this, ether will remain the second most polar cryptocurrency. ETH ranks second in capitalization with a huge gap from third place (Tether is more than three times smaller). In addition, if you look at the last two Bitcoin halvings (in 2016 and 2020), you will find that in the year and a half after each, Ethereum grew by more than 12,000% and 2,000%, respectively. Of course, in 2024 it would be quite reckless to expect such figures: after all, in July 2016, the coin cost about $10. And at the end of 2023 — almost $2,400. However, such statistics allow us to believe in the rapid growth of ether. The coin may also be supported by the Dencum update, which is expected in the first quarter of 2024.
2023 was quite a successful year for smart contract platforms. Almost everyone has at least doubled in size. Solana became the leader, adding about 900%. But Cardano’s indicators are much more modest — about 130%. This is what makes SOL a 2024 favorite. Demand for cryptocurrencies from smart contract platforms will remain high.
Cardano is supported by the simple fact that the project did not fall out of the top five in terms of developer activity on Github throughout the year. And in early October and December 2023, the Cardano blockchain generally became a leader in this indicator.
Chainlink is the number one blockchain oracle (a system that allows the execution of smart contracts by injecting/releasing data into the real world). With a huge lead over competitors. As of January 1, it is the 14th cryptocurrency by capitalization among all. At the same time, the closest rival oracles are not even in the top 100.
If the information for executing smart contracts is not in the blockchain, then people are forced to use oracles, and Chainlink will remain the most popular for a long time. Also, the advantages of the platform include its constant development. For example, developers promise the introduction of artificial intelligence.
Litecoin is inherently as close as possible to cryptogold, Bitcoin. True, it is just as far away in popularity and prevalence. Cryptosilver halving occurred in 2023, which did not cause an increase in the price of LTC. It is likely that the bullish trend will happen in 2024. In addition, the Bitcoin halving should give a positive impetus not only to BTC, but to the entire crypto market.
Well, Litecoin has all the same advantages as Bitcoin: limited emission, which means deflationary nature, relative popularity (17th place in capitalization), long history (cryptocurrency appeared in 2013). And most importantly: while 2023 was a very successful year for most cryptocurrencies, cryptosilver added only 6.7%. So we can expect that Litecoin will catch up with its competitors in 2024, and will confidently overtake some.
The list of cryptocurrencies given here does not guarantee profit, since the economic situation is extremely volatile, and it is impossible to predict everything that may happen. In addition, it can be said with almost one hundred percent probability that there will be cryptocurrencies that will be able to bring much greater profits. However, this is a double-edged sword: the risks will also increase exponentially.
This material and the information contained herein do not constitute individual or other investment advice. The editors' opinions may not coincide with the opinions of the author, analytical portals and experts.