The cryptocurrency market experienced a notable recovery in 2023, with Bitcoin (BTC-USD) and many altcoins bouncing back nicely from their lows. The possibility of a spot Bitcoin ETF approval by the U.S. SEC in January 2024 could trigger a bullish trend, especially benefiting these top crypto picks for 2024.
As of Jan. 2, the global cryptocurrency market cap reached $1.83 trillion, with Bitcoin hitting $45,680, its highest since April 5, 2022. This marked a significant recovery, with Bitcoin up 173.1% in the past year and 6.8% in the past week, signaling a positive start to 2024. Craig Erlam, Senior Market Analyst at OANDA, anticipates less controversy and potential discussions about reaching record highs in the crypto community this year.
That said, there are three cryptos that I highly recommend investors have in their portfolio if they want a boost in 2024.
Avalanche (AVAX-USD)
Avalanche (AVAX-USD) stands out in the smart contract arena, processing 6,500 transactions per second with its innovative three-chain architecture (X-Chain, C-Chain and P-Chain). The C-Chain has witnessed increased smart contract deployments, indicating a thriving developer community.
Avalanche’s month-to-date rally coincided with the release of 9.54 million AVAX tokens in late November, demonstrating resilient market absorption and sustained demand. This occurred amid Ethereum’s (ETH-USD) escalating gas fees, where Avalanche boasted a significantly lower median gas cost of $0.051 per transaction than Ethereum’s $4.66 in December.
As a layer one blockchain, Avalanche is the foundational layer for various applications. It competes with Ethereum as a customizable blockchain network. Although on-chain signals indicate some bearishness, with a slight dip in large transaction volume, most individual unit holders remain profitable, reflecting strong enthusiasm for Avalanche. The next anticipated upside target for AVAX is around $80.
Solana (SOL-USD)
Solana (SOL-USD) rebounds from the crucial $100 support level, trading at $104.25 with a 3% increase in the last 24 hours and a noteworthy $4.55 billion in trading volume. With a substantial market capitalization of approximately $44.74 billion and a circulating supply of 429,177,917 SOL coins, Solana holds the fifth position on CoinMarketCap.
As Solana responds to these market dynamics, observers await to see if this momentum could lead to new highs for the cryptocurrency.
Additionally, Solana surged following praise from investor Cathie Wood, who highlighted its superior functionality to Ethereum. Wood’s endorsement on CNBC propelled SOL into the top five cryptocurrencies by market capitalization. Analysts anticipate a rally in 2024, aligning with Wood’s perspective on its efficiency compared to ETH.
Cardano (ADA-USD)
Cardano (ADA-USD) has attracted a significant following by prioritizing security and empirical methods. The project’s slow and steady approach gained favor among investors seeking long-term returns. In 2023, Cardano’s price more than doubled, reaching nearly $0.60. Despite earlier skepticism, recent weeks showcased the project’s strong performance.
Cardano is positioned favorably for potential gains during Bitcoin rallies and post-halving events due to its smaller market cap compared to Bitcoin. According to some analysts, with a proven track record, Cardano stands out as a resilient cryptocurrency, offering investors a balanced risk-reward profile and a potential increase of 2,800%.
Additionally, ADA’s recent dip to $0.86 attracted significant whale activity, with a group purchasing 100 million ADA, indicating short-term bullish sentiment. Beyond short-term movements, institutional interest and ongoing ecosystem developments, such as decentralized governance and enhanced network features, position Cardano as a crypto to watch.
On the date of publication, Chris MacDonald has a LONG position in SOL, ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
