Top 5: Cryptocurrency to Watch in 2024

Top 5: Cryptocurrency to Watch in 2024

Top 5 Cryptocurrencies

A list of five cryptocurrencies that are likely to grow or become more popular in 2024. This includes detail about what makes each one special and why they might be important in the coming year. In this post, we’ll talk about the top five cryptocurrencies to watch in 2024, elaborating on unique features, potential use cases, and market trends.

1. Bitcoin (BTC)

Overview

Bitcoin is the first and most known cryptocurrency. In 2009, an anonymous entity named Satoshi Nakamoto launched Bitcoin, which brought about the idea of decentralized currency.
Why Watch Bitcoin in 2024?

    • Institutional Adoption: Since institutional investors like Micro Strategy and Tesla start to use BTC more as part of the balance sheet, companies will continue making more stable and legitimate Bitcoin.
    • Halving Event: The next Bitcoin halving is scheduled for 2024, reducing the block reward from 6.25 to 3.125 BTC. Historically, halving events have been linked to significant price hikes; thus, this is a happening that investors should monitor.
    • Store of Value: Bitcoin is increasingly termed “digital gold” since it is increasingly being perceived more and more as an inflation hedge, especially during the global economic uncertainty.

    Ethereum (ETH)
    Summary

    Ethereum is more than a cryptocurrency; it is a decentralized platform that allows developers to create and deploy smart contracts and dApps. Launched in 2015, Ethereum has become a leader in the DeFi and NFT spaces.
    Why watch Ethereum in 2024?
    Ethereum 2.0 Transition: This has been one of the biggest developments to this date: Ethereum 2.0 transition, which works with the proof-of-stake mechanism. It has brought forth transactions to be faster with lower fees, thus Ethereum appealing more to developers as well as users.
    DeFi and NFTs: Ethereum is the biggest platform for DeFi projects and NFT marketplaces. As these sectors grow, Ethereum’s utility and demand should increase.
    Interoperability: Ethereum is working on interoperability solutions with other blockchains that may expand its ecosystem and user base.

    Cardano (ADA)
    Overview

    Cardano is the third-generation blockchain platform founded by Charles Hoskinson, one of the co-founders of Ethereum. Launched way back in 2017, Cardano is set to be more security-oriented and scalable concerning apps, smart contracts, and so on.
    Why Watch Cardano in 2024?
    •Concentration on Sustainability: The proof-of-stake consensus mechanism in Cardano is less energy-intensive, thus making it a good option for the environment-conscious investors.
    Growing Ecosystem: Smart contracts, introduced on the Cardano platform, have witnessed a boom in projects, and partnerships are primarily seen in DeFi and NFT.
    Global Partnerships: Cardano is trying its best to partner with governments and other organizations worldwide to ensure blockchain solutions are implemented and implemented in developing countries.

    Solana (SOL)
    Overview
    Solana is a high-performance blockchain designed for decentralized applications and crypto projects. Solana was launched in 2020 as a fast-blockchain transaction speed and low fees-based platform.
    Why Watch Solana in 2024?

      Scalability: Solana’s unique architecture allows for processing thousands of transactions per second, making it one of the fastest blockchains available. Scalability positions Solana head-to-head with Ethereum.
      Growing Popularity: The Solana network has acquired momentum with the passage of time as the number of projects being launched on its platform has increased, particularly in DeFi and gaming areas.
      Community Backing: The Solana community boasts an influential group of developers and enthusiasts, hence continuous innovation and development.

      Polkadot (DOT)
      Introduction

      Polkadot is a multi-chain platform. It allows different blockchains to interoperate and share information. Launched in 2020 by Ethereum co-founder Gavin Wood, the project aims to create a more connected and collaborative blockchain ecosystem.
      Why Watch Polkadot in 2024?
      •Interoperability: Polkadot’s unique architecture will allow seamless communication between other blockchains, hence becoming a very important player in the growing trend of blockchain interoperability.

        • Parachains: More scalability and customizability through the development of parachains, as it enables the development of specific blockchains for certain applications.
        • Ecosystem Growth: The Polkadot ecosystem is developing at a high speed; many projects and partnerships are currently underway, thereby improving its overall utility and market presence.
          Conclusion
          The cryptocurrency market will have some interesting things to offer moving into 2024. Among the numerous cryptocurrencies, the following five stand out from the rest: Bitcoin, Ethereum, Cardano, Solana, and Polkadot. These projects are worth watching for any seasoned investor or newcomer to the crypto space.

        Altcoins performance Mid-2024

        altcoin

        In the past week, many altcoins and also BTC have been performing bad except some of the top stablecoins. There was decrease in prices observed across the market. BTC dominance has been increasing in long-term since 2023 and currently stands at 53.31%. This means, Bitcoin has been performing relatively better than altcoins in long-term from start of 2023 to mid-2024. This is possible due to more capital flowing to BTC rather than altcoins or altcoin prices performing relatively worse which causes an increase in BTC share of crypto market. Evaluating the price trends and performance of altcoins in absolute terms also provides broader perspective of how they are performing against BTC.

        Performance of Top Altcoins

        During the first quarter of 2024, prices of many coins started increasing and many investors had positive sentiment about crypto prices. By the start of second quarter and summer-2024, downward trend has started. According to a report by Binance, in June, crypto market cap decreased by 11.4% which was caused by various factors. Crypto assets were being sold in large quantities which sustained downward trend. Most prominently, US and German governments transferred substantial amounts of BTC to centralized exchanges which caused selling pressure among crypto investors.

        The altcoins with declined prices includes Ether, BNB, SOL, and Dogecoin. ETH has sustained upward price trend in initial months of current year, fuelled by halving event, announcement of ETH ETF approvals, and overall positive sentiment. Since the start of June to 9th of July, ETH price experienced 18% decrease. Certain events along with reduced investor confidence contributed to this. The anticipated launch of spot Ethereum exchange-traded funds (ETFs) in the United States on July 2 was expected to fuel a price rise for ETH. SEC has delayed this process. Furthermore, SEC has also increased regulatory crackdown mainly affecting Ethereum-based DeFi platforms.

        ETH may to june 2024
        ETH price movements

        BNB which has world’s 4th largest market cap achieved its ATH on 7th June reaching $710, but didn’t keep the upward trend and its price also has now decreased to $515. Regulatory crackdown on Binance by FCA is also behind this price decrease.

        BNB ALT June 2024 1
        BNB ATH

        Solana’s network outage also caused SOL’s price to decrease. Currently, these major events contribute to negative market sentiment for the top altcoins. We also observe resilience in some cryptocurrencies like TON. Moreover, during the past week, ETH price also shown some resilience reaching $3079 after hitting $2832.

        Interestingly, even Ether’s demand has decreased in recent month, its supply keeps increasing which may be due to Dencun upgrade. But this recent development in the blockchain reduced the transaction fees and is favourable for Ethereum-based DeFi procotols. The developments in the Ethereum blockchain empowers the DeFi ecosystem and can drive Ether’s price and adoption. This is also observed for SOL which is native coin of Solana blockchain. While blockchain upgrades boost coin’s adoption, the value of coin may still decrease due to regulatory crackdowns and fear among the investors which cause sell-offs.

        Relative performance of Altcoins and BTC

        Large-scale selling of specific cryptocurrency can shift investors’ interest to other cryptocurrencies. The halving of BTC which reduced miner reward from 6.25 to 3.125 BTC caused many miners to sell-off the coins in large quantities which reduced BTC price. While, large-scale selling also occurred for other coins, but cryptocurrencies like TON and SOL show better price performance than BTC in recent month. From June to July, TON’s price has gained back the upward trend after hitting lowest point of this month and had 2.6% increase. According to Binance’s report, BNB is top performer among exchange-related token. This is also because BNB reached its ATH in June. Binance’s events have sustained good demand for this coin.

        Crypto market performance June 2024