It’s not been an easy time for the cryptocurrency industry of late, especially with the memory of 2022’s “crypto winter” still looming, but a new year brings a fresh start and a time to look forward to new trends that could emerge in the industry.
The crypto market has, by all accounts, undergone a meteoric rise and there are thousands of different tokens now available, from behemoths like Bitcoin to lesser-known meme coins. With 2024 underway, you’re probably wondering which cryptocurrencies to add to your investment portfolio over the next 12 months. Wonder no more, as this article will dive into the four key coins to purchase this year.
Core Crypto Trends in 2024
Before we discuss our top coins for the year, it’s essential to understand the upcoming industry trends that could impact both asset growth and decline. There are a few key trends that crypto enthusiasts should investigate, from widespread industry legislation to the shifting landscape of GameFi and Web3.0.
At present, numerous territories around the globe are in the process of either planning or launching crypto legislation. Meanwhile, crypto analysts have predicted that more financial institutions will likely integrate a wider range of tokens beyond Bitcoin into their products from 2024, which would be a significant step towards mainstream adoption.
The burgeoning sectors of DeFi and GameFi are on track to continue their growth trajectories as the year develops. The increasing number of decentralized finance projects launching in 2024 will strengthen the sector’s position and challenge more traditional financial services and business models. In turn, this will boost the profile of DeFi and DApp tokens. GameFi will also evolve to new levels as the concept of the Metaverse becomes more of a reality.
Crypto gaming, as it stands now, is a high-growth sector, having attracted $1.23 billion in investments in 2023 alone. It already encompasses a wide range of interactive digital experiences, from decentralized updates of traditional video and iGaming activities, as in the case of Bitcoin blackjack, through to play to earn (P2E). In creating a hub for gaming, socializing, and business, the Metaverse will rely on crypto and digital assets to sustain its digital economy, opening up opportunities for significant growth for associated coins and projects.
The Best Crypto Investments for 2024
Satoshi Nakamoto’s ubiquitous 2009 creation remains the cryptocurrency with the most utility and a staggering market cap of over $900 billion in January 2024. Although its price has both plummeted to record lows and achieved staggering highs during its lifetime — ranging from as low as $470 in 2016 to over $61,000 in November 2001 – BTC is widely considered to be the most stable crypto of all.
This blockchain-based coin has high liquidity, medium Tokenomics, and best-in-class security and transparency. Its extensive and proven development team and global community support, meanwhile, make it an investment that’s hugely accessible. Despite its inherent volatility, Bitcoin’s days of rapid, short-term gains are long gone, meaning this is not the asset for investors trading high risk for significant gains.
A crypto coin and a blockchain platform, Ethereum is leading the charge in the DeFi and NFT sectors following its 2022 merge from proof of work to proof of stake. The Ethereum network has vast utility, powering everything from smart contracts to DApps, and its long-term commitment to scalability and energy efficiency will see it continue to dominate in 2024, boosting the profile of ETH in the process.
ETH’s market cap reached $311.82 billion at the time of writing, making it an excellent addition to the investment profile if risk management is a priority. With a very high trading volume and liquidity, Ethereum is just as accessible a token as Bitcoin. Given its status as an integral DeFi token and blockchain, analysts have predicted high growth for the project in 2024.
The second crypto token and blockchain platform to make our cut for 2024, Cardano (ADA) is making waves in the development and execution of dApps and smart contracts. While it doesn’t possess the vast utility of the biggest altcoin in the market (ETH), Cardano still has a broad market. The network is primed to address scalability and interoperability issues, marking it as a project to watch in 2024.
ADA’s price fluctuations make it an attractive investment for a balanced portfolio. At the time of writing, its 10-day Moving Average reached $0.559, while its 100-day stood at $0.409, signalling a positive trend.
Promising high network activity and currently experiencing growth in adoption as GameFi innovation continues to surge, Polygon (MATIC) could be an option for investment in 2024. The Polygon platform, like Ethereum, uses a proof of stake mechanism to generate a robust ecosystem and high transaction volumes. As Web3 and the Metaverse become more prevalent, projects based on the network will no doubt add value to its native token, MATIC.
January 2024 saw MATIC trade between $0.784 and $1.124. It’s a volatile investment, but its current resistance levels of $1.278 and $1.619 indicate that future growth is to be expected.