Confident in crypto’s long-term potential, analysts have been seeing increasing collaboration between centralized and decentralized systems. Top talking heads in this sector emphasize top-quality cryptos for long-term investment for those able to handle the volatility in pursuing significant returns. Of course, some caution must also be preached, given that this space is prone to crashes in a much more frequent cadence than the stock market.
That said, despite a recent market cooling, mega-cap cryptos are taking off. Historically, Bitcoin’s rise preceded a surge in other leading tokens, and smaller projects also took off. But for now, it makes sense to focus any positive attention on this sector and the largest tokens out there. So, let’s do that.
Bitcoin (BTC-USD)
The ultimate crypto, Bitcoin (BTC-USD), has found new footing near the $70,000 level and appears poised to move to new all-time highs. Speculation about a deep correction has waned as recent dips are bought. Bitcoin’s price action is one thing, but its fundamentals are another. Following the recent halving event this year and the approval of spot Bitcoin ETFs, a nice supply/demand imbalance is helping out investors.
According to crypto analyst Starbust, corrections in Bitcoin bull runs are typically swift, followed by rapid rebounds. Crypto trader Mags has referenced the “Psychology of a Market Cycle” to indicate Bitcoin’s transition into the “belief” phase, marked by growing investor confidence.
This analysis is on point and describes what we’ve seen with Bitcoin’s price action lately. Big names such as Cathie Woods and Jack Dorsey are stepping into Bitcoin in a big way. And as more institutional investors step into this asset class, it’s a rising tide that should lift all boats (including the following two names).
Ethereum (ETH-USD)
Ethereum (ETH-USD) completed its recent “Dencun” update to reduce data fees and enhance network efficiency alongside proto-dank sharding and lower Layer 2 transactions. Pending SEC decisions on spot Ethereum ETFs could impact Ethereum’s trajectory, potentially driving this token toward its $4,878 peak (and maybe higher).
Coinbase’s (NASDAQ:COIN) recent research report highlights Ether’s underperformance in 2024 compared to Bitcoin but asserts its long-term solid outlook. Despite a 29% year-to-date rise (less than Bitcoin’s 50%), the market has noted the potential upside of Ethereum. Factors like limited supply and Ethereum’s dominance in decentralized finance (DeFi) contribute to its positive trajectory.
The launch of Retik Finance integrates DeFi with traditional finance, influencing Ethereum’s DeFi dominance. Market expectations, especially from JPMorgan (NYSE:JPM), are also bullish, with the investment bank seeing excellent growth in 2024.
Solana (SOL-USD)
Solana (SOL-USD) is a leader in the innovation race in the crypto sector. That mainly results from this network’s incredibly fast transaction speeds and rock-bottom fees. For developers working on NFTs or those looking to make small transactions on the blockchain, this sort of speed and cost structure is needed to see this sector proliferate.
Solana’s token price has surged like the other tokens on this list. After finding support near $138, this token’s rally has surprised many, outperforming other leading tokens, including Bitcoin and Ethereum. We’ll have to see if this continues, but if Solana can continue consolidating above these levels, it’s entirely possible new resistance levels could become support on the way higher.
During the memecoin frenzy, Solana demonstrated its speed, hitting a record 1,504 daily average transactions per second (TPS) on April 6. Compared to Ethereum, it’s 46 times faster and over five times faster than Polygon (MATIC-USD). However, network congestion issues have arisen, prompting questions about future TPS improvements.
On the date of publication, Chris MacDonald did not have (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.
