March 6, 2024 The anticipated 2024 bull market might be the last crypto trading cycle where retail traders can gain generational wealth before institutional investors take control of the entire crypto-verse. This scenario has already begun to unfold, as evidenced by the rise in both BTC’s price levels and market sentiment since the approval of Bitcoin ETFs across U.S. stock exchanges.
The positive development of the BTC spot ETFs has boosted inflows into the entire crypto market. That, along with rising user adoption, growing real-life use cases, the anticipated Bitcoin halving, and the inception of AI into crypto, has alerted traders that we might be at the starting point of a new bull cycle for cryptocurrencies.
Altcoins are also predicted to face some tailwinds this upcoming year.
The most immediate and possibly the biggest hurdle for altcoins this year is the full-on crackdown initiated by the SEC (U.S. Security and Exchange Commission) to regulate cryptocurrencies strictly. Other factors that are less specific to the crypto industry, albeit relevant, are the financial conditions of global economies struggling with stubborn inflation and high-interest rates. From a political standpoint, around 50% of the world’s population is due for elections this year, including the U.S, India, Mexico, UK, and most of the EU. This, combined with the potential escalation of global conflicts (Ukraine, Gaza) or the potential start of new ones, could have a massive impact on cryptos and all other financial markets.
For all these reasons, we chose to take a closer look at some of the most established projects in the crypto-verse, as they are expected to exploit current market opportunities best while still possessing enough resiliency to successfully manage the potential challenges of the year (and years) ahead. For the same reasons, please note that in this review, we’ll examine our candidates by focusing primarily on the fundamentals and long-term potential of the blockchain itself rather than using technical analysis on the associated coin.
Before we move forward, please remember that this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve risks, and readers should research before making financial decisions.
Away we go!
Ethereum was first launched in 2015 by Vitalik Buterin and his team to form a more advanced ecosystem than Bitcoin. It was the first crypto project to introduce the ability to create and execute smart contracts on the blockchain, transforming cryptocurrencies from a simple store-of-value solution into a groundbreaking concept that supports dApps, DeFi, NFTs, gaming, and more.
Since its inception, ETH has established itself as the second-largest cryptocurrency after BTC in terms of market cap and most other measurable criteria. What sets Ethereum and ETH apart from their competition is their first-mover advantage, widespread adoption, and ability to evolve with time through significant upgrades. ETH’s overall dominance in the crypto markets is expected to grow, as 2024 is projecting another great year for Ethereum.
The Duncan Upgrade, a highly anticipated system upgrade scheduled for the upcoming months, is predicted to improve transaction speeds and reduce gas fees, making the blockchain more appealing and accessible for users of all kinds. Thus, it will increase both adoption and overall traffic volumes on the blockchain.
There is also growing momentum around a potential spot ETF approval for ETH, allowing mainstream investors exposure to ETH through traditional channels. While the SEC is being cautious, the vast ecosystem and liquidity surrounding Ethereum make it the strongest contender for the second crypto ETF after Bitcoin. ETH already has some future ETPs in play, just like Bitcoin had before its approval, which is another positive indication for the upcoming authorization.
ETH rose over 120% in the past six months and broke above the $3,500 price level. This could indicate strong momentum to examine and even break the all-time high (ATH) levels of 2021, around $4,650. As one of the cornerstones of cryptos and Web3, ETH is positioned to be one of the most interesting digital assets to follow in the next bull run.
Ripple is a fintech company established in 2012 by co-founders Chris Larsen and Jad McCaleb to revolutionize cross-border payments by leveraging blockchain technology. It is the leading blockchain out of a category of crypto projects named ISO200022. This category of cryptos aims to replace SWIFT as a faster, cheaper, and more secure way for banks to send and receive payments across traditional money markets.
By utilizing XRP, the native coin of XRP Ledger (XRPL), financial institutions can get liquidity for instant settlement for transactions involving different fiat currencies. As of today, Ripple has already landed some big-name members who joined its ecosystem, such as Bank of America and Santander (U.S.).
2024 could be a pivotal year for Ripple and XRP with a few key developments. This year, the highly anticipated verdict on Ripple’s legal battle with the SEC over the status of XRP as a security is expected. A favorable ruling (i.e., not to be classified as a security) would remove regulatory scrutiny.
Additionally, Ripple continues to expand its global reach (especially in emerging markets across Asia, Africa, and LATM) and explore other use cases for XRP, such as the tokenization of assets. These factors, combined with rumors of a potential IPO for Ripple this upcoming year, are expected to affect Ripple’s ecosystem and the XRP coin positively.
Over the past six months, XRP rose around 30%, missing out on the wave of positive momentum in the crypto markets. This is mostly due to the uncertainty surrounding the SEC lawsuit. Currently trading at around $0.5-$0.6, XRP is still far behind its 2018 all-time high of $3.84. Many experts think this might leave XRP with much room for potential growth, especially once its legal status is clarified.
Binance, a name synonymous with crypto exchanges, launched its own native token, Binance Coin (BNB), in 2017. Its journey started as a utility token for the Binance exchange, offering discounted trading fees on the exchange. As the Binance ecosystem evolved, BNB expanded its use cases, including participation in token sales, DeFi projects, and other real-life use cases.
Binance Coin is unique in the crypto space because of its versatility compared to traditional cryptocurrency. It is intertwined with the biggest crypto exchange in the world. Unlike some coins that solely depend on speculation, BNB has organic, utility-driven demand that presents a compelling value proposition for traders.
Recently, Binance unveiled its 2024 Web3 blueprint, outlining its commitment to fostering the new generation of dAPPs, many of which utilize BNB. Along with the expansion of payment services like Binance Pay and Binance Visa, this upcoming year looks set to be the year BNB continues to build its recognition as an acceptable means of payment outside the Binance blockchain.
Binance also deserves praise for its proactive approach to regulatory requirements. It doesn’t face any direct SEC-related concerns (after the resignation of founder and CEO Changpeng Zhao) and even received regulatory approvals from several other countries, mainly in the Gulf region.
BNB rose by approximately 95% over the past six months. It is currently testing the historical resistance level of the $400-$450 price mark, where a break above could signify a very bullish trend. With the expected rise in trading volumes associated with a bull market and Binance’s overall dominance in the crypto world, many view BNB as an opportunity worth keeping an eye on.
Since its inception in 2020, Solana has been considered the most likely candidate to disrupt Ethereum’s dominance in Web3. It’s earned a reputation as an “ETH killer” by offering a faster and cheaper ecosystem than Ethereum for developers. Solana can achieve this by utilizing a unique consensus mechanism called Proof-of-History, enabling it to process thousands of transactions per second, far exceeding other competitors in the L1/Web3 space.
Along with its apparent selling points, the Solana blockchain does have its fair share of issues. Solana was one of the cryptocurrencies affected most by the fall of FTX and Alameda Research, as Sam Bankman-Fried was one of the ecosystem’s first investors and biggest patrons. Solana also suffers occasional outages, though for many developers, it’s a price they are willing to pay in return for a high-speed network with low gas fees.
Today, Solana has managed to put Sam Bankman-Fried in the past and is enjoying positive market sentiment as the technology improves and system malfunctions become increasingly scarce. This is consistent with data released by Solana itself, reporting a surge in the number of developers, developer retention, and overall activity in its L2s. These are excellent signs for SOL, as it plays a crucial role in the Solana ecosystem for gas fees and governance.
SOL rose an astonishing amount over 550% over the past six months. While some traders argue that the rally has already exhausted itself, from a technical standpoint, nothing is in its way from rising even higher. At around $130, SOL is still far behind its 2021 ATH of $259.5, but with the positive momentum it’s enjoying, even a new all-time high in the upcoming months is a reasonably reasonable scenario.
Cardano was launched in 2017 by a team of developers led by Charles Hoskinson, one of the founding members of Ethereum. The project stands out from the crypto landscape in its commitment to an academic approach to development backed by scientific research and peer reviews.
Cardano’s unique development method is often considered a double-edged sword. While it did make Cardano one of the most appealing blockchains to institutions and governments, this rigorous process also slows down the ecosystem’s development in comparison to its L1 competitors.
With that in mind, it is not surprising that Cardano has one of the most elaborate roadmaps in the crypto space. Its fifth and last stage of development, Voltaire, is scheduled to premiere in the near future, set to transform the ecosystem into a fully decentralized blockchain. This development is expected to boost demand for the native coin ADA, as its role in the ecosystem will become more crucial than before. More importantly, this makes ADA one of the most likely candidates for an ETF spot after ETH.
Looking ahead, Cardano also plans to launch sidechains and other functionality upgrades aimed at increasing real-life usage. In that aspect, the most notable project would be Atala PRISM, where Cardano is joining forces with the Ethiopian government to be the first to deploy digital IDs to all its citizens (about 127 million of them.)
ADA is currently trading in the $0.7-0.8 price range after going up over 200% during the past six months. If it continues with its current momentum, ADA will soon examine the crucial $1 checkmark. Many experts think that a successful break above could possibly signify a play towards the 2021 ATH at $3.
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