Cryptocurrencies offer intrigue for high-risk, high-reward enthusiasts. However, many are perilous investments with potential losses outweighing gains, particularly among startups lacking utility or distinct value propositions. Conversely, certain high-profile projects provide substantial relative utility. In bull markets, these cryptocurrencies can yield impressive returns, with far less risk than meme tokens or other speculative names.
Bitcoin’s (BTC-USD) first-half surge has signaled the start of a new cryptocurrency bull market to many investors. In and of itself, Bitcoin’s price action directly impacts the directional move many other early-stage crypto projects see.
However, as the market pauses around these levels, it’s prudent for long-term investors to consider top cryptocurrencies for dip buying. Concurrently, the expanding use cases and rising adoption seen among many blockchain projects suggests more upside could be possible, if the macroeconomic taps are turned back on. Let’s dive into three such projects I think could benefit in a big way from the next bull market in risk assets.
Bitcoin (BTC-USD)
After hitting $31,850, Bitcoin (BTC-USD) now hovers around the $29,000 level. However, I think this level presents an attractive accumulation opportunity. Despite a 75% year-to-date surge, substantial potential remains in a robust bull market. Standard Chartered forecasts a year-end target of $50,000, with a potential climb to $120,000 by late 2024. If accurate, this projection implies significant gains for Bitcoin within 18 months.
This presents a clear opportunity for crypto enthusiasts witnessing the rapid 2023 growth of the leading cryptocurrency. Viewing the price drop as a market knee-jerk, it’s noteworthy that this marks the fourth 25-basis point increase this year. Despite the hike, Bitcoin has surged from under $17k to $31k. The recent increase is unlikely to suppress prices for long, as BTC has demonstrated quick returns even at $30k.
Bitcoin’s distinct attributes – limited supply, stable transaction count – set it apart, offering stability and differentiation from peers. When diversifying, acknowledging its enduring strength and broad adoption is important. Popular with both retail and institutional investors for reduced volatility, BTC’s 2024 halving hints at a potential surge. A robust crypto leader, backing Bitcoin aligns with a reliable avenue for substantial gains.
Ethereum (ETH-USD)
Ethereum’s (ETH-USD) vital pioneering in smart contracts is enhanced by its first-mover edge, drawing a substantial developer community and maintaining a significant lead. Switching hurdles makes rival platforms less likely to gain smart contract dominance. Ethereum’s ongoing progress, notably the shift to energy-efficient proof-of-stake, strengthens its stance amidst energy rules.
In the next five years, Ethereum could achieve remarkable growth, possibly outpacing Bitcoin. According to Ethereum’s founder Vitalik Buterin as stated in 2022, Ethereum’s merge will complete 55% of its development, signaling significant progress. This gives Ethereum an edge over Bitcoin.
The merger’s advantages, including reduced energy consumption, are not yet fully appreciated, attracting eco-conscious investors. Two main catalysts for Ethereum’s rise are faster transactions and significantly lower costs. Achieving this within 24 months could lead to Ethereum delivering 3x to 5x returns from current levels.
Solana (SOL-USD)
Solana (SOL-USD) emerged as an early Ethereum challenger in Web 3.0. Despite a strong start in the 2021 rally, it fell short of expectations, now trading below $25, a vast difference from its peak at $260. Its persistent downtime and reliability problems are rare in blockchain, hindering SOL’s growth potential at its present value.
Solana’s institutional adoption, likened to the “Visa for digital assets,” boosts its growth potential. Despite a projected 16% increase to $25.43, the volatile crypto market and unforeseeable factors warrant consideration.
Dubbed an “Ethereum rival,” SOL is poised for substantial 2025 growth, fueled by its affordability, scalability, and compatibility. Solana shines in decentralized finance and non-fungible token sectors, with stability enhancements and the Helium migration attracting developers and expanding its reach.
On the date of publication, Chris MacDonald has a LONG position in ETH, SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.