If you haven’t capitalized on Bitcoin’s (BTC-USD) growth, it makes sense to pay attention to altcoins. They often repeat the movements of the main cryptocurrency and imitate its ups and downs with a certain time lag. There are thousands of coins on the market now, so you should focus on the most promising cryptos to watch and grab the chance in time.
Top Cryptos To Watch: Polkadot (DOT)
At the end of last year, the cryptocurrency market witnessed a surge in activity around altcoins. While Bitcoin, the market’s locomotive, was gradually approaching the $45,000 mark, other digital assets reacted more sharply to changes in the crypto sphere. Polkadot (DOT-USD) emerges as one of the cryptos to watch, combining several blockchains and increasing the overall value for investors and network users. In December, Polkadot proved it could bring money to attentive investors. In just one week, the coin showed an increase of more than 40%.
The project’s NFT ecosystem is striking. The OpenGov Referendum 377 proposal can expand the capabilities of NFTs and simplify adaptation for newcomers. Thanks to such solutions and an innovative approach to blockchain interoperability, Polkadot stands out among more established networks.
With a capitalization of about $9 billion, DOT is the 11th most capitalized asset on CoinMarketCap. Proposals from industry giants such as BlackRock for Bitcoin ETFs have not shaken its position. Despite the delay from the U.S. Securities and Exchange Commission (SEC), the anticipation of spot cryptocurrency ETFs remains the fuel for the cryptocurrency’s upward trend. Its interoperability capabilities position Polkadot as a bridge between disparate networks, enabling seamless information transfer and contributing to a more connected crypto ecosystem.
Polkadot’s surge marks a pivotal shift toward utility-focused projects. The token’s value began to decline after reaching a peak of almost $12. However, this may change after reaching around $6.5 for 1 DOT. General market trends and the recognition of the importance of interaction within decentralized networks can lead to new records in the value of this cryptocurrency.
Chainlink (LINK)
One of the fundamental problems of the blockchain ecosystem is interoperability. It is this shortcoming that the universal translator between different blockchain platforms, Chainlink (LINK-USD), is perfectly fighting against. An example of this is the application of the technology by the Australian bank ANZ. It used Chainlink’s capabilities to execute transactions with tokenized assets.
This is not an isolated case of Chainlink’s interaction with areas that were previously unrelated to the crypto world. By working with SWIFT, it has optimized cross-border transactions and managed to connect traditional banks with various blockchains. Data exchange between dApps and systems outside the network became possible thanks to the decentralized network of Chainlink blockchain oracles.
Since the beginning of 2024, LINK has traded in a range of $13.88 to $17.48, and bearish sentiment is evident in the short term. However, 2023 proved that the surge could start at any time, as the token showed an increase of 144.8% over the past year. Investors’ caution is understandable, and market analysis points to the prospect of breaking through $20.
Market analysts, including Ali Charts, emphasize the formation of a potential pennant for LINK. In their opinion, a close above $17.2 will be a catalyst for a twofold increase in the price of the crypto asset.
The market recently witnessed the purchase of more than $105 million worth of LINK tokens. This indicates interest among major players, making LINK one of the cryptos to watch. In 2021, Chainlink was already trading at levels close to $50 and the influx of fresh investment could lead to an approach to these levels.
Ripple (XRP)
The intrinsic utility of Ripple (XRP-USD) is backed by cost-effective cross-border fund transfers. With its help, financial institutions can go beyond traditional financial systems and instantly exchange both crypto and fiat currencies.
In July 2023, the three-year trial between Ripple and the SEC ended. Ripple Labs proved its case and dispelled fears around the classification of XRP. This influenced investor opinion and their commitment to cryptocurrency.
The excitement generated a significant surge in XRP to $0.82, which lasted until early August. It is equally important that the token showed its stability even after the news about the SEC’s loss disappeared. Technical analysis of XRP’s performance charts showed a stabilizing trend. XRP found support at the level of the 50-day moving average (DMA), which served as a decisive baseline. After that, the crypto asset maintained its position consistently above the 200 DMA. Even the general market downturn after the new year did not significantly change the trend. XRP still stands out as one of the cryptos to watch, as it has shown a recovery trend since January 10, 2024.
The second week of the new year was marked by the fact that Ripple Labs initiated a buyback program. It bought back $285 million worth of shares from its first investors and employees. The company can afford it, holding $25 billion in cryptocurrency funds. With this strategic move, the company has confirmed its confidence in the prospects of XRP and added healthy optimism to the owners of this crypto asset.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
