The crypto sector has had several catalysts play out this year, with mixed results and several cryptos to watch. The recent approval of 11 spot Bitcoin (BTC-USD) ETFs by the Securities and Exchange Commission (SEC) initially resulted in a surge in crypto prices. However, a sell-the-news decline sent most tokens lower in recent weeks. Moving forward, all eyes are on an upcoming Bitcoin halving in April and several updates from other key cryptos we’ll get to shortly.
Each of the three cryptos below has a unique catalyst investors are watching closely. I think these tokens have real long-term value and could certainly go on a run if the sector sees strong momentum again. There’s always the potential for another interest rate cut-fueled rally later this year.
With that said, let’s look at these three top cryptos.
Ethereum (ETH-USD)
The world’s second-largest cryptocurrency, Ethereum (ETH-USD), doesn’t require an introduction. The backbone of the DeFi sector, Ethereum is commonly associated with its smart contract platform, being the first major player in utility generation in the crypto space.
For optimistic investors, a potential SEC-approved Ethereum spot ETF could attract more institutional interest to this token. While uncertainty remains around whether such an ETF will ultimately get approved, I think such news would likely have an outsized impact on Ethereum relative to Bitcoin.
That’s because Ethereum provides users with real-world value and has a much more robust ecosystem of decentralized applications. With the network now operating under a proof-of-stake consensus, there’s also the option of earning yield by staking Ethereum tokens. Thus, the range of ETF offerings could be more vast and intriguing than those provided for Bitcoin.
This is the under-the-radar catalyst investors should focus on regarding Ethereum.
Solana (SOL-USD)
Solana (SOL-USD) excels in the world of layer one networks—Solana’s speedy transactions position the blockchain well as key competitors to Ethereum in the burgeoning DeFi sector. With more than $1.57 billion in total value locked, Solana is the primary blockchain investors are focused on when it comes to the world of non-fungible tokens (NFTs).
I think a resurgence of growth for NFTs could be a hidden catalyst that Solana investors aren’t focusing on. Solana’s recent NFT boom facilitated $2.1 billion in stablecoin transfers, generating $591,416 in fees and $850 million in trading volume. That’s something to write home about. Accordingly, analysts foresee continued growth on the horizon, with the token hitting as much as $150 apiece if this rally continues.
I have to admit another NFT surge does seem unlikely, and I have yet to see many widespread and viable use cases for these tokens. However, value is in the eye of the beholder, and if we do see an NFT renaissance, Solana ought to be a go-to token to consider.
Aptos (APT-USD)
Aptos (APT-USD) has seen some rather impressive upward surges in recent months. Indeed, after settling below $5 per token late last year, Aptos now trades closer to the $9 range. That’s the kind of growth investors are after.
Aptos’ collaborations with various blockchain networks and prominent crypto figures position it as a promising asset. In early January, Aptos surged as OKX endorsed its NFT inscriptions. This move affirmed Aptos as a leading blockchain for NFTs, leveraging its unique Move programming language. If more partnerships and listings are announced, Aptos could be an under-the-radar token with the potential to move much higher.
Of course, betting on future catalysts that are uncertain is, in itself, a risky strategy. But Aptos’ network growth and its surge into a top-30 spot by market capitalization seems to validate the market’s view that this project has underlying value.
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.
