In 2023, the crypto market has recovered with a market cap that has gained more than 100% in the last year. In 2024, it starts the year with a bang as the crypto market cap has increased by around 100% in just 6 months! However, it has gone from US$2.35 trillion on June 21, 2024 to US$2.09 trillion as of September 18, 2024.
The SEC’s authorization for the launch of a Bitcoin spot ETF has supported the normalization of the largest cryptocurrency on the market, which reached a new all-time high of around $73,000 on March 11, 2024. In addition, this step has also encouraged investors to look at other cryptocurrencies to create a diversified portfolio and take advantage of the crypto craze.
However, the market must continue to consolidate the foundation that will support the expansion of the rebound of cryptocurrencies after the numerous bankruptcies and the risks related to the structural instability of several projects that have materialized in recent years.
While on May 23, 2024, the SEC announced the approval of the applications of Nasdaq, CBOE and NYSE for the listing of Ethereum Spot ETFs, the launch took place on July 23, 2024 with $1.07 billion in shares traded according to CF Benchmarks. However, the price of Ether did not explode like that of Bitcoin with the launch of Bitcoin ETFs, since it lost almost 35% between July 24 and September 18, 2024.
Do you want to invest in cryptocurrencies? Find out which crypto to buy to make the most of your crypto investments in this article which offers an overview of the best cryptos 2024.
Top 10 Best Cryptocurrencies to Follow in 2024
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- USDC and USDT
- Solana (SOL)
- Cardano (ADA)
- Chainlink (LINK)
- PAX GOLD (PAXG)
- Ripple (XRD)
- Shiba Inu (SHIB)
Bitcoin: The Reference Cryptocurrency to Buy
Bitcoin (BTC), created by Satoshi Nakamoto, is not exactly a new cryptocurrency, but it is often part of the answers to the “which crypto to buy” questions that investors ask themselves, because it is the first to have been created and the largest on the market.
BTC, as the main cryptocurrency, gives a good overview of the trends of all other cryptocurrencies.
Bitcoin started the year 2023 above $16,550 and ended the year around $38,253, an increase of more than 130% in 2023. The trajectory of inflation and monetary policies impacted the evolution of Bitcoin in 2023, in particular by favoring investment in riskier assets, which supported the purchase of cryptocurrencies.
We should also not forget the crisis in the banking and financial sector, which has had an influence on the value of the token. Technological developments around Bitcoin also affect the performance of the network and should attract more and more investors. For example, on August 15, 2023, Jacobi Asset Management listed Europe's first Bitcoin spot ETF on Euronext Amsterdam, the Jacobi FT Wilshire Bitcoin ETF. Let's not forget that MicroStrategy has continued to acquire new Bitcoin.
Since January 2024, a new stock market product has been available for American crypto investors wishing to gain exposure to Bitcoin: a Bitcoin spot ETF. The US securities regulator, the SEC, has indeed authorized the listing of 11 Bitcoin ETFs on January 10, 2024. While some issuers are established players, such as Fidelity, BlackRock and Invesco, others are a little more recent, such as Grayscale, 21Shares and Ark Invest founded by Cathy Wood.
Investing with ETFs generally allows you to use financial products that help the development of underlying markets, particularly in terms of liquidity, as was the case with the gold market. According to Galaxy Digital, these Bitcoin ETFs could bring between $14 and $38 billion in liquidity to the Bitcoin market in 3 years. In just two months of existence, Bitcoin Spot ETFs have become ultra-popular investment vehicles in the United States.
And things could change further if a Bitcoin-backed ETF were to be authorized on the other side of the Atlantic.
On March 11, 2024, the UK regulator, the FCA or Financial Conduct Authority, stated that “it will not oppose applications by Recognized Investment Exchanges (RIEs) to create a UK listed market segment for crypto asset-backed Exchange Traded Notes (cETNs)” for professional investors, which could further support BTC over time. This news pushed Bitcoin to an all-time high on Monday, March 11, 2024 above $72,250 (a Bitcoin price increase of over 70% since January 2024 and over 249% in the last 1 year).
Between January 2024 and September 18, 2024, the price of Bitcoin has gained over 42%.
In April 2024, the latest Bitcoin halving occurred, dropping BTC miner rewards from 6.25 BTC to 3.125 BTC, which could have a significant impact on the price of Bitcoin in the future if demand remains high as the supply of BTC tokens decreases.
Ethereum: Bitcoin challenger and most used crypto
Ethereum (ETH) is the second most valuable cryptocurrency. It is therefore not a new cryptocurrency either, but its dominance makes it a must-have crypto even in 2024. Should you buy the cryptocurrency in 2024?
Despite poor performance in 2022, Ethereum managed to implement “The Merge” update in mid-September 2022 to switch from proof-of-work to proof-of-stake, which turned out to be one of the few positive developments in the market in 2022. This merger reduced the amount of ETH tokens available in circulation and made the Ethereum network 99.95% more energy efficient. Demand for Ethereum staking in 2023 has grown significantly, especially from institutions since The Merge.
This is a big step forward, as ETH is often considered the most widely used virtual currency. This is due to the presence of many tokens that are based on the use of Ethereum. The recent boom in the DeFi sector should therefore support the crypto-asset, especially if the banking crisis intensifies.
ETH can be associated with a stock market index since the companies that would make it up would be the players in the crypto industry. This mechanism also explains the panic attack that hit ETH in 2022. Certain tokens linked to Ethereum, such as StETH, are one of the main explanations for the collapse of platforms such as Celsius.
The year 2023 saw a new major update for the Ethereum network. Called Shapella, this enhancement to the Ethereum blockchain since its Merge update allows investors to exchange a derivative of deposited Ether tokens, such as OP, ARB, and other ERC-20 tokens, for the interest accrued on the blockchain network over the past three years.
Ethereum developers have detailed a comprehensive strategy for the network’s advancement in 2024, including significant improvements and new proposals. A key part of their plan involves abandoning the Goerli testnet, which is scheduled for a fork in early 2024. This move is part of the initiative to activate “Dencun” on the network in January 2024, marking a major leap in the network’s technological capabilities.
In 2023, ETH gained over 71%, rising from $1,200 to $2,063. The Ethereum token has only increased very little between January 2024 and September 18, 2024 (+1.69%). However, it reached a high since 2021 above $4,060 in March 2024.
The increasing scarcity of tokens is also observed with ETH, which means that the supply of Ethereum tokens is decreasing while demand is increasing. For example, the Ethereum blockchain has become a key security infrastructure for many secondary networks such as Polygon, implying the need to use ETH tokens for operations on Polygon.
In contrast to the positive effect of Bitcoin ETFs on the price of Bitcoin and the cryptocurrency market in early 2024, the July 2024 trading authorization of several Ether ETFs has not attracted as much enthusiasm.
However, the Ether ETFs represent a new victory for the cryptocurrency market aimed at bringing digital assets into the circle of investments available to all.
Binance Coin: the crypto that is invited to the big league
Binance Coin, issued by the famous platform of the same name (Binance), now belongs to the very exclusive club of the 5 largest cryptocurrencies in the world. Binance is one of these giants that are benefiting from the democratization of cryptocurrencies in individual savings.
While many promising projects like those related to NFTs on the BNB Chain blockchain are expected to support the Binance ecosystem and the value of the token, is it the time to buy the cryptocurrency that has gained more than 32% in 2023, going from $244 to $323 and which increases by more than 74% between January 2024 and September 18, 2024.
Although Binance Coin is one of the few exchanges that has continued some hiring in 2023 and shows its confidence in the future, mainly due to its historical and dominant position, it remains exposed to structural risks and the supervision of the American policeman, the SEC.
In April 2024, Changpeng Zhao (CZ), the former CEO of Binance, was sentenced in the United States to 4 months in prison between June and September 2024 after pleading guilty to violating the Bank Secrecy Act. Binance also pleaded guilty to money laundering, unlicensed money transmission, and sanctions violations. It must therefore pay numerous fines.
Despite this, BNB reached an all-time high above $724 in June 2024 and is enjoying the best performance since January 2024 of the top 5 most important cryptocurrencies.
USDC and USDT: the maintenance of stablecoins
Buying cryptocurrencies: are stablecoins a good idea? The year 2022 will have been the year of all turbulence for stablecoins. Despite this, the stablecoins USDT and USDC are in 3rd and 6th place among global cryptocurrencies in September 2024 and could attract investors who want to diversify their portfolios while investing in the (theoretically) least risky crypto-assets.
The crisis on the cryptocurrency market in 2022 was essentially induced by parity problems of several stablecoins (Terra in the lead). It is indeed necessary to differentiate stablecoins indexed (theoretically) on "real" dollars, from algorithmic stablecoins based on other cryptocurrencies and which also claim to ensure parity. The Terra USD was in this last category. Conversely, USDC and USDT are first-class stablecoins. However, as for USDC, the token is linked to Circle, a platform that has experienced significant difficulties.
Finally, it is important to remember the attractiveness of cash during periods of market decline. "Cash", i.e. liquidity (dollars in particular), is one of the rare asset classes to have performed despite the crisis in the cryptocurrency market. In addition to the protective effect of stablecoins, it has an attractive effect in a context of inflation and liquidity crisis, especially for the dollar.
Also note that since 2021, the Eurosystem has been working on the launch of a digital euro in the eurozone. The digital euro will not be deployed before 2027 or 2028.
Latin American countries, which have to deal with high inflation, monetary control and low availability of traditional financial services, are increasingly involved in cryptocurrencies, and particularly stablecoins, including USDC (Mercado Libre, Ripio, Lemon, Credix, Littio, etc.). The reaction of traditional stablecoins is therefore to be watched carefully.
Solana: an atypical blockchain using Proof of History to obtain faster transaction managemen
Solana, an open source blockchain, was launched in March 2020 with the aim of facilitating access to decentralized finance (DeFi) thanks to fast and secure processing of operations via the Proof of History protocol.
This method makes it possible to encode the timestamp of messages passing through the network to obtain consensus on transactions once this step has been validated, without requiring coordination between the nodes of the network. Thus, everyone can quickly verify the validity of the timestamp of a transaction, which considerably improves the performance and speed of the blockchain.
Solana has recorded an incredible performance in 2023 with a growth of more than 750%. This is the best performance in 2023 in the Top 10 largest cryptocurrencies by market capitalization, pushing the token to 5th place among the largest cryptocurrencies. The growth prospects for the network and the token are attractive, especially thanks to the growing Solana ecosystem and the recent boom seen in DeFi.
Between January and September 18, 2024, the Solana token gained over 28% and reached a 2021 high above $209 in March 2024.
Cardano: a crypto based on a double blockchain and well established in the Top 10 virtual currencies
Cardano (ADA) is among the 11 largest cryptocurrencies to date. It is a blockchain platform that stands out from its competitors by the existence of a double blockchain that allows secure and scalable transfers (ability to meet high demand).
Cardano has significantly underperformed the main cryptocurrencies in 2022 with a drop of more than 80% from $1.309 to $0.239. However, we find here the "usual" behavior of the Cardano price during the market's boom and bust phases.
In 2023, the ADA token had a volatile year, but still gained more than 140%, from $0.2538 to $0.6174. Should You Buy Cryptocurrency in 2024? It is a relatively affordable token compared to other options in the cryptocurrency market, which makes it a positive. As a third-generation blockchain platform aimed at solving the scalability and interoperability issues that have plagued previous generations of blockchains, Cardano could continue to enjoy growth this year.
As developers have recently accelerated technological innovations in the ecosystem with new features to support its performance, capabilities, and compatibility with other networks and projects, the ADA token is increasingly popular. However, it has lost more than 43% between January 2024 and September 18 to hover around $0.335, its lowest since late 2023.
Chainlink: the blockchain that connects real-world data to the blockchain world to develop Web3
Chainlink is a blockchain that was created to provide a network of decentralized oracles to connect two worlds: on-chain (i.e. on the blockchain) and off-chain (i.e. outside). The use cases related to smart contracts are therefore interesting so that they are increasingly relevant in our current world.
In March 2023, Chainlink announced the launch of its latest product, Chainlink Functions, which connects Web2 APIs with the Web3 world, thus facilitating the integration of real-world data on a blockchain. This functionality offers a wide variety of possibilities and use cases, as it allows Web3 projects (dApps or smart contracts) to be connected with Web2 systems such as Meta, Amazon Web Services or Google Cloud.
By allowing developers to combine the best of Web3 smart contracts with the power of Web2 APIs, Chainlink will likely foster the development of applications that combine the best of both worlds. This should support the network and its token over time as blockchain adoption and project creation increases.
In January 2024, the company’s decentralized oracle services caught the attention of Ledgity, a French wealth management firm specializing in cryptocurrencies. In mid-February 2024, Chainlink announced that it had partnered with popular telecommunications company Telefónica to protect its Web3 users. On September 17, 2024, Fireblocks and Chainlink Labs announced a collaboration to accelerate the regulated issuance of stablecoins.
While it had gained more than 182% in 2023, going from $5.677 to $16.05, the LINK token lost more than 29% between January and September 18, 2024 to hover around $10.57.
PAX GOLD: a cryptocurrency to protect your portfolio
PAX GOLD is a special cryptocurrency that allows you to reduce the risk in your portfolio. In addition to the speculative or diversification aspect provided by digital currencies, the purchase of a cryptocurrency must also be done according to a level of risk tolerance. Issued by the company Paxos, the objective of the cryptocurrency is to reproduce very exactly the variations in the price of gold. Thus, PAXG tokens are issued with corresponding reserves via the company Paxos.
One of the biggest advantages is that investors do not have to worry about the conservation and protection of real gold, or its transfer, since these services are provided by PAX. In addition, it is possible to benefit from gold through a fractional investment, which makes these tokens more accessible to individual investors who want to invest in gold, but who would not be able to benefit from it otherwise.
The token price remains correlated to the price of gold, which stagnated in 2021 (after a performance of +19% in 2020) and which was relatively stable in 2022 (although very volatile with a high of $2,070 and a low of $1,614). However, it strengthened in 2023 with the rise of gold. The PAX Gold token has indeed gained more than 9% in 2023, going from $1,851 to $2,033, thanks to the rise of gold which seems to remain sustainably above $2,000.
Gold hit a record high above $2,589 in September 2024, as massive central bank purchases, Asian demand, geopolitical tensions, and Fed rate cut expectations weighed on the US dollar. The price of gold and the PAX GOLD token gained more than 24% and 27% respectively between January 2024 and September 18, 2024.
Since PAX Gold is a hybrid asset that combines crypto asset technology and gold, bridging the gap between these two different investment opportunities while offering the same level of security and consistency as BTC, it should appeal to a growing number of investors looking to diversify their portfolios. An interesting cryptocurrency purchase for 2024?
Ripple: The Cryptocurrency That Has Maintained Its Place Among the Most Important Cryptocurrencies for Over 10 Years
Ripple (XRP) was created in 2012 by Ripple Labs, although the Ripple project dates back several years before that. The development of the project and the XRP token aimed to provide a digital payment protocol that allowed for fast and inexpensive international transfers.
To differentiate itself from other tokens, Ripple tokens were all pre-mined and its services focused on interbank exchanges. Ripple is indeed developing its services to improve interbank payments and to offer solutions to banking groups and financial institutions.
The resilience of the XRP token (which is still positioned in the Top 7 cryptocurrencies) is quite impressive, as it has been under the wrath of the SEC for several years. After many twists and turns, the SEC decided to drop the charges and lawsuits against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen in October 2023.
There is still no final decision in the lawsuit between Ripple and the SEC. The SEC accused Ripple of selling XRP as unregistered stocks and sought a hefty fine of $2 billion. Ripple argued that the fine should be much lower. While Ripple was instead targeting a fine in the $10 million range, a Manhattan court judge ordered Ripple Labs to pay the SEC approximately $125 million in penalties in August 2024.
Since mid-September 2024, next-gen broker Robinhood has been re-listing XRP tokens, which has given the token some momentum. This move could also support the price of Ripple over time, as more investors can now have access to Ripple trading.
In 2023, the XRP token rose from $0.3399 to $0.6463, an increase of more than 90%. Between January 2024 and September 18, 2024, the Ripple token underperformed other major cryptocurrencies as it lost more than 5% and is trading around $0.581.
Shiba Inu: The second largest meme cryptocurrency popular in trading
Shiba Inu was launched in August 2020 by an anonymous creator or collective known under the pseudonym Ryoshi. Described as a meme cryptocurrency in reference to the meme "Doge" representing a Shiba Inu dog breed, it positions itself as a rival to Dogecoin (it also describes itself as the "Dogecoin killer").
Known for its strong community and viral success on social networks, the Shiba Inu token (SHIB) is mainly used for speculation purposes on the cryptocurrency market because its usefulness is often debated. Although mainly used in speculative trading, it is still exploring potential applications in the decentralized finance (DeFi) sector and other areas.
The SHIB token, which ranks 13th among the most important cryptocurrencies and is part of our top 4 meme coins 2024, exploded in March 2024 to reach a high since 2021 around $0.00003236. Between January 2024 and September 18, 2024, the Shiba token increased by more than 28%.
Shiba Inu benefits in particular from a process of reducing its supply via a process known as burn rate. In the world of cryptocurrencies, the "burn rate" consists of permanently removing tokens from circulation to reduce the total available supply, in particular with the aim of making the remaining tokens rarer and potentially more valuable.
It was announced in mid-September 2024 that Shibarium’s testnet, Puppynet, could soon receive major technical updates, including a new version of Bor and the implementation of the Cancun hard fork. These improvements are aimed at speeding up transactions, improving storage efficiency, and enhancing the user experience.
Which cryptocurrencies to buy at the end
of 2024?
The craze around cryptocurrencies that had accelerated at the beginning of 2023 with the banking crisis linked to the bankruptcy of SVB and the intensification of concerns about the banking sector with the fall of Credit Suisse then calmed down before accelerating again at the end of 2023. The beginning of 2024 was explosive for the cryptocurrency market before things calmed down again. The trajectory of monetary policies and key rates for the end of 2024 and for the year 2025, particularly in the United States, could influence all financial markets, including the cryptocurrency market.
If you are wondering which crypto to buy, know that the cryptocurrencies mentioned could attract those who want to develop their investments in alternative assets or bet on trends such as the metaverse. It is important to note, however, that cryptocurrencies are extremely volatile assets, and therefore very risky, which may not be suitable for all investors.
As always, it is recommended to diversify your investments to reduce your overall risk level. Depending on your investor profile, you may want to invest between 5% and 15% of your assets in alternative assets such as cryptocurrencies. Diversification should also apply within your crypto portfolio (stablecoins, large cryptocurrencies, smaller projects, cryptocurrencies based on other real assets, etc.).
To avoid the risk of FOMO or Fear of Missing Out when investing in cryptocurrencies, it may be interesting to set up a recurring investment plan or DCA to invest in the market with a fixed amount every month without taking into account the price of these virtual currencies.