Despite the most recent sudden drop in the cryptocurrency market, Bitcoin ( BTC -0.37% ) has increased by 35% so far this year. Bitcoin Currently, the price of Bitcoin is significantly lower than its peak of $73,750 reached earlier this year. Despite this, the 35% increase in value is quite remarkable compared to the trends seen in other cryptocurrencies.
When looking at the top 50 cryptocurrencies listed on CoinMarketCap, only around one-third of them have shown positive growth so far this year. Among the ones that have seen gains, only a few are performing better than Bitcoin. Therefore, aside from Bitcoin, what other cryptocurrencies should investors consider purchasing at this time?
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What’s in store for the year ahead?
In order to address this inquiry, we must initially examine the investment strategies that have not yielded the expected results this year. One such example is the AI crypto tokens, which were anticipated to be prominent players in the cryptocurrency market. However, up to this point, all of them are performing below the level of Bitcoin. Render (CRYPTO: RNDR) has decreased by 4% so far this year. Alliance for Artificial Superintelligence (CRYPTO: FET) The cryptocurrency previously named Fetch.ai has increased by only 24% so far this year.
What about the alternative blockchain platforms that were expected to surpass Ethereum? Ethereum (CRYPTO: ETH) In the current year? Apart from Solana ( SOL -1.48% ) , despite experiencing a 53% increase in value this year, all of them have turned out to be massive disappointments. Cardano (CRYPTO: ADA) , for instance, has decreased by an astonishing 44%. Avalanche (CRYPTO: AVAX) is down 46%. Aptos (CRYPTO: APT) The price of Ethereum has decreased by 43%. Although Ethereum has only increased by 7% so far this year, it is at least showing a positive trend.
None of the Layer 2 scaling solutions for Ethereum have been successful. These blockchains aim to enhance the speed, cost-effectiveness, and overall performance of Ethereum. However, the leading Layer 2 scaling solutions for Ethereum have experienced a decline in performance over the year. Polygon Polygon’s token, MATIC. has decreased by 58% this year.
What are your plans for the upcoming year?
So far in 2024, there have been limited opportunities for investment. However, one group of cryptocurrencies has shown strong performance, and that is meme coins . Floki ( FLOKI -1.36% ) — inspired by Elon Musk’s Shiba Inu dog — has increased by 254% this year. Pepe ( PEPE -0.59% ) The platform, identified by a green animated frog as its symbol, has increased by 500%. Dogwifhat ( WIF -0.73% ) — that includes an adorable dog sporting an adorable hat — has increased by an impressive 1,000% this year.
However, there is a significant issue to consider. Meme coins are characterized by their high level of risk and speculation, with minimal real-world practicality. As a result, they are not suitable for inclusion in long-term investment strategies. These coins are unlikely to maintain their value over time and are prone to drastic price fluctuations driven solely by investor sentiment.
This situation puts us in a difficult position. Nearly every segment of the cryptocurrency market is experiencing a decrease in value, with only comical meme coins showing better performance than Bitcoin. This raises the question of what actions a long-term investor who follows a buy-and-hold strategy should take.
Solana
One possible response might be: Solana Solana has stood out among major cryptocurrencies by performing better than Bitcoin this year. This is mainly due to Solana’s strong connection to the current trend of meme coins in the cryptocurrency market. Therefore, investing in Solana can be seen as a way to indirectly participate in meme coins’ popularity while potentially facing lower risks.
Credit: Getty Images.
Numerous individuals, including entertainment figures, are currently creating meme coins on the Solana blockchain, contributing to a significant rise in Solana’s performance indicators. Particularly, there has been a noticeable increase in Solana’s daily active users. Additionally, important metrics associated with decentralized finance (DeFi), such as the 24-hour trading volume, are experiencing substantial growth. The reason behind this surge is that Solana’s decentralized exchanges are the exclusive platforms for trading numerous new Solana meme coins. Consequently, Solana is currently surpassing Ethereum in terms of trading volume.
Certainly, there are additional factors that make Solana appealing aside from being a meme coin. Solana stands out for its superior cost-effectiveness, speed, and efficiency compared to Ethereum. Ark Invest’s Cathie Wood highlighted this to institutional investors in November, suggesting that Solana could potentially surpass Ethereum as the leading blockchain in the future.
Also, it is important to consider Solana’s focus on mobile technology. Solana made headlines by introducing its own smartphone called the Saga, making it the first prominent blockchain to do so. The emphasis on mobile devices has the potential to significantly boost future expansion.
What is the alternative to Bitcoin?
Currently, it is difficult to overlook the significance of Bitcoin. Despite a cryptocurrency market downturn, Bitcoin has demonstrated resilience and remains one of the top-performing cryptocurrencies. However, if you are seeking to enhance your investment portfolio significantly, you may want to think about incorporating the high-performance Solana.
