Finding the most reliable cryptocurrencies in their respective sectors is part of the game in the dynamic crypto market. Identifying projects that can rebound and be resilient during down markets, but have long-term growth potential is essential. While Bitcoin (BTC-USD) remains at the top, exploring lesser-known options opens the door to promising opportunities as the crypto sector continues to evolve in 2024.
This article aims to look closer at the top cryptocurrencies providing the real innovation and financial change investors should be after. Let’s dive into why these there cryptos remain top buys for long-term investors seeking core portfolio holdings right now.
Ethereum (ETH-USD)
In a complete shift to 2023 trading patterns, Ethereum (ETH:USD) surged 28% in 2024, outpacing Bitcoin’s 21% gain. This is a display of Ethereum’s increasing dominance in the world of DeFi, and the corresponding benefit investors are applying to this token. Indeed, $5.2 billion poured into the market after U.S. regulators gave the nod to spot Bitcoin ETFs, with rumors of Ether ETFs now driving much of the price action in this sector. Many eyes are now closely watching the decisions made by regulators.
Additionally, Ethereum founder Vitalik Buterin is excited about the Dencun upgrade being just right around the corner in March. This upgrade aims to sharpen Ethereum’s efficiency, scalability, and security. This will mark the start of Ethereum’s “The Surge” era, following the transition to Proof-of-Stake. Also, the integration of Verkle Trees has everyone on the edge of their seats.
Bitcoin continues to see strong momentum form after after the SEC gave the nod to spot Bitcoin ETFs. If Ethereum is next to follow suit, it could be a key token to watch moving forward.
Solana (SOL-USD)
Have you missed out on Solana’s (SOL-USD) unanticipated “Uptober” spike? It’s okay.
A decline may be on the horizon, providing an opportunity for investors left on the outside looking in after this spike. Certain technical factors such as an overheated RSI and shrinking acquisition volume are ringing alarm bells for traders. However, I remain bullish on Solana’s long-term potential.
Recently, Solana’s DeFi ecosystem experienced a 200% surge in value, reaching $2 billion in total value locked (TVL) from $688 million in December. This was fueled by liquid staking and yield protocols. Solana, one of the five cryptocurrencies in terms of market capitalization, broke through the key $100 level once again. Clearly, this signals renewed institutional interest.
Solana’s DeFi ecosystem has rebounded from December, bouncing to $2.028B TVL per DeFiLlama. This number is low compared to its high in 2021. Therefore, Solana still has strong investment potential for those who think this rebound can pick up steam.
Bitcoin (BTC-USD)
As many headwinds remain, Bitcoin’s price action has certainly been volatile. Given the number of catalysts supporting Bitcoin recently (a surge in risk assets across the board, the SEC’s approval of spot Bitcoin ETFs, and an upcoming halving), one might think it’s been all rainbows for the world’s largest cyrpofcurrency.
Unfortunately, that hasn’t been the case. In fact, spot Bitcoin ETFs have indeed helped Bitcoin see a $1 trillion market capitalization once again. But this move hasn’t been a straight line higher. It has been one which was initially marred by a decline post-ETF approval.
Given Bitcoin’s size, many investors may rightly think this is a token that doesn’t have the ability to move meaningfully higher from here. However, looking at many of the moves we’re seeing in mega-cap tech stocks, and Bitcoin’s historical performance, anything is possible.
It’s my view that Bitcoin’s catalysts may simply be stronger than the headwinds facing this token. If that’s true, investors may be in for a volatile roller coaster ride higher in 2024.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
