Several cryptocurrency enthusiasts continue to look for next big thing in this market of tokens and coins. 2023 has been categorised as the year which has shown strong recovery in prices of cryptocurrencies. Several crypto coins saw a recovery from major fallouts over the course of 2023, and since the year nears its completion, traders and crypto experts continue to maintain the flow of funds as they focus on exploiting this positive momentum. They are now aiming for best cryptocurrency to invest in 2024.
Several experts and hedge fund managers recommend that there can be numerous headwinds in 2024 which can impact the consumer confidence. These headwinds include a cooling job market, higher rates, inflationary concerns, etc. Therefore, they mentioned that it is smart and sensible to re-examine the risk levels in a particular portfolio.
As adoption for blockchain continues to increase in mainstream sector, the heat has been felt for cryptocurrency as well. In the current economic environment, there are more projects ready for investment than a person can remember. Since Bitcoin recently touched ~$44K levels for the first time since the month of April 2022, not enough time is left to purchase crypto’s cheap before bull run results in increased prices.
Even though it is impossible to anticipate the behaviour of market with accuracy, there are numerous signs indicating that 2024 should turn out to be the positive year for cryptocurrencies. These expectations stem from increased interest from the institutional investors. The blockchain technology has been evolving continuously, since several projects are targeting to solve scalability, security and efficiency problems.
Apart from these positive measures, there are traders and experts who are starting to view cryptocurrencies, primarily Bitcoin, as the hedge against inflation and economic instability. While best cryptocurrency to invest in 2024 will depend on numerous factors, overall industry seek support from favourable market sentiments and increased users for the blockchain technology.
Collectively, such factors appear to be positive for the industry’s outlook for cryptocurrencies in 2024 which can result in new bull run in this market. Despite several positive factors, there are some headwinds which can negatively impact overall crypto market, mainly the higher regulatory pressure on these crypto tokens. Experts believe that institutional flows will be anchored on bitcoin at least through 1H24 and this momentum is expected to be supported by pent-up demand from traditional investors who are seeking an entry to this industry.
Given the continuous evolvement of the crypto market, we will now have a look at best cryptocurrency to invest in 2024.
Top Cryptocurrency to Invest in 2024
1. Bitcoin (BTC)
Bitcoin has been categorised as the most expensive and renowned crypto on the global basis. This token is characterized by strong liquidity. Given the fact that Bitcoin is the 1st crypto and token’s importance for overall industry can be easily compared to US dollar’s role in overall economic environment, it is always the most important cryptocurrency for investors to have a look. With the current market cap of ~ $853.65 billion, its prices continue to climb quickly.
Global research firm expects Bitcoin is poised to achieve strong gains in 2024 and the token might test ~$109,364 levels in early 2024.
Bitcoin has increased by more than ~120% in this year, with numerous experts being optimistic regarding its surge continuing in 2024. Traders feel that 2023 was the year to get ready for bull run which has not arrived yet. However, the sentiments are quite hopeful for 2024 and 2025.
This digital currency’s last record high was of ~$69,000, which it touched in November 2021.
2. Ethereum (ETH)
Ethereum is quite unpredictable and volatile, matching the characteristics of other cryptocurrencies. That being said, the momentum remains positive and there are numerous reasons for the traders to expect that ETH price will continue to move higher over the course of next year. The key reason for this token’s optimistic outlook is its utility. Unlike BTC, which mainly gets used as the value store and means of value transfer, ETH network continues to have a rare utility for dApp developers. They tend to utilise ETH network for the development of other cryptocurrencies and establish and run smart contracts, NFTs along with several other decentralized finance applications.
ETH has seen a significant increase over the past few months. Global analysts expect that ETH network revenue should be able to climb from $2.6 billion to ~$51 billion by the end of year 2030. Therefore, ETH can be one of the best cryptocurrency to invest in 2024. On YTD basis, ETH went up by whopping ~90%.
3. Solana (SOL)
Solana project focuses on supporting DeFi (decentralized finance) solutions and give opportunities for the creation of smart contracts and dApps. With the help of Solana, developers are able to make quicker networks without compromising security. More often than not, SOL token is required for the payment of fees, make payments and generate income from staking.
This token has seen exponential increase in 2H of 2023, with its prices increasing from $19.62 at September beginning to $63.12 towards December 2023 beginning.
4. Ripple (XRP)
Ripple developed XRP token to support global financial institutions in making international payments without the payment of fees and at the faster pace.
On the YTD basis, it has seen the growth of ~87%, with its price increasing from INR28.02 to INR52.46 as on December 15, 2023.
5. Cardano (ADA)
Cardano has been tagged as the special platform which is based on proof of stake (PoS). It helps in creating numerous dApps (decentralized applications) on the basis of smart contracts.
ADA has been growing and should increase in remaining days of this year. Global analysts expect that, in just 6 months, it has the ability to overcome $0.90 mark as a result of dApps growing on ADA. Total value locked went up from $50 million to $250 million in the last year.
Conclusion
Making investments in the cryptocurrency is an idea which is worth considering, and the best cryptocurrency to invest in 2024 will definitely be the one which has strong fundamentals, market acceptance and favourable market dynamics.