2023 has been a rollercoaster ride for cryptocurrency investors. Following the extreme bearish 2022, the crypto market spent the majority of 2023 with skepticism on whether the time was right to rekindle investments or not.
Starting the year at around $16k, Bitcoin, the index currency, struggled for consistency, and despite little gains, it only crossed the $25k region in March and consolidated between the $25k and $30k regions for 7 months, towards October ending, before finally breaking through the $30k region for the first time since June 2022. Bitcoin further broke the $40k resistance in December 2023, for the first time since April 2022.
All of these have created positive market sentiment in favor of a new crypto bull run in 2024, and investors are getting ready to throw in money in expectation of huge gains.
Of course, portfolio diversification is great, and you can make much more profits by investing in some altcoins with massive potential in 2024. So, while you prepare for the next bull run, these are the top three altcoins to consider including in your portfolio.
Top Three Altcoins To Invest In In 2024
Before sharing the top picks of altcoins to invest in in 2024, it is important to know that this list is based on the following factors:
- Market Cap: This list includes assets with mid-large-range market capitalizations, with the aim of lowering the risk of investment. Typically, the lower the market capitalization, the more unstable it is; however, tokens with hundreds of millions in market cap show stability and could be worth the risk.
- Project use case: All tokens on this list are backed by solid projects with tenable use cases, as the token's value is determined by its compatibility with the emerging dApps and Web3 ecosystem.
- Community: A solid community and team behind a crypto project play an essential part in deciding the project's success. As a result, the level of community engagement these projects get is factored into their selection.
With that said, these are the top 3 altcoins you should consider investing in ahead of the new year.
Solana (SOL) is the native token of the Solana Network, used to pay transaction fees and fuel the Solana network.
The Solana network was launched in 2020 as a decentralized, open-source, blockchain network designed for speed, efficiency, and scalability, with the ability to process up to 65,000 transactions per second.
Solana supports smart contract functions; hence, several dApps and DeFi protocols can be hosted on the Solana network, and due to its architecture, it can process transactions much faster than Ethereum at way cheaper fees.
As a result, it is one of the biggest Ethereum killer blockchains.
After attaining its all-time high price of $260 in November 2021, it spiralled down through the 2022 bear market, recording a yearly low of around $11 per token.
However, given the fact that the Solana blockchain is a massive one, where many tokens and NFTs are hosted, it has survived the bear market and is now trading around $65. Additionally, the network has seen significant improvements in terms of uptime and transaction processing without the occasional blackouts experienced in the past, which are all positive signs.
Being only behind BTC, ETH, BNB, and XRP in market capitalization, Solana has massive potential to soar higher in 2024.
Like Solana, Avalanche is another Ethereum killer; although it hasn’t enjoyed massive adoption like Solana, it is still one of the alternative blockchains with solid infrastructure, assuring users of scalability, security, and interoperability.
AVAX is the native token of Avalanche, which is used to pay network fees and secure the blockchain through staking.
AVAX also saw its highest price ($146) in November 2021 before suffering the bearish run of 2022. Currently priced at about $26 per token, it is still one of the most valuable cryptocurrencies, with a market capitalization of 9.78 billion dollars, the 10th highest of all cryptocurrencies. Additionally, institutional adoption of AVAX by reputable organizations like the Institute of Electrical and Electronics Engineers (IEEE) could tilt AVAX towards a general positive sentiment by the general public.
With cross-chain interoperability being a major building block for developers in 2023, a new bullish run could set the stage for bigger adoption of the Avalanche network in the coming year.
Unlike Solana and Avalanche, which own their own blockchains and confirm transactions without having to depend on a higher authority blockchain, Arbitrum is an Ethereum Layer-2 chain that has been launched since 2021. However, the Arbitrum token (ARB) wasn’t created until March 2023, at a point when the crypto market was pretty undecided. Regardless, it soared high, experiencing it’s all-time high in March at about $11 per token.
Although, unlike SOL and AVAX, ARB isn’t primarily used to pay gas fees on Ethereum Layer-2 transactions but is used to participate in governance decisions. Regardless, the ARB token is still one to look out for in a bullish run, as Arbitrum is one of the most used blockchain networks, ranking third for protocols hosted and fourth for TVL.
During a bullish run, where altcoin transactions will be at their peak, Ethereum sidechains like Arbitrum will enjoy traffic, and ultimately ARB will gain value.
ARB currently sells at about $1 per token, with a market cap of roughly $1.5 billion and a decent potential for increase in 2024.
How To Confirm A New Altcoin Season Amid A Bull Run
Typically, the easiest way to confirm a new altcoin season is when there are general pumps and the market is all green for a sustained period of time.
However, one foolproof method to confirm a bear season is by juxtaposing Bitcoin’s price and Bitcoin dominance.
By a rule of thumb, an altcoin season is underway when Bitcoin’s dominance is reducing but Bitcoin keeps appreciating. This signifies that investors aren’t necessarily selling their Bitcoins but are now pumping investments into other altcoins.
Currently, the Bitcoin dominance is at 53% and Bitcoin is in an uptrend; if Bitcoin continues in an uptrend without the Bitcoin Dominance Index doing the same, then it is time to follow the trend and invest in altcoins.
Given the market’s strong finish to 2023, it is safe to say that 2024 holds a lot of promise for investors. However, to ensure you make the most of the opportunities in the market, you must be prepared. Hence, the knowledge of altcoins to invest in will come in handy as you prepare your investments ahead of a new year.
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