As a seasoned investor with over two decades of experience in the financial markets, I must say that the recent performance of these four cryptocurrencies – Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP) – has caught my attention. Having witnessed the rise and fall of many digital assets, I’ve learned to appreciate the potential that lies within the blockchain industry.
My personal experience has taught me that it is crucial to invest in projects with a clear purpose, a solid team, and a robust ecosystem. In this regard, these four cryptocurrencies have shown great promise. For instance, Bitcoin, being the first and most well-known cryptocurrency, has paved the way for the entire industry. Its decentralized nature and limited supply make it an attractive store of value and hedge against inflation.
Ethereum, on the other hand, is a platform that enables the creation of smart contracts and decentralized applications (dApps). It’s a game-changer for industries such as finance, law, accounting, insurance, and supply chain management. I believe Ethereum has the potential to revolutionize these sectors in ways similar to how the Internet transformed publishing and retail commerce.
Solana, inspired by Ethereum, offers greater network speed and lower fees, making it an attractive alternative for developers and users seeking faster and cheaper transactions. Its meme coins may be a fun aspect for some investors, but I would advise beginners to stick with the base layer SOL tokens.
Lastly, Ripple’s XRP is a decentralized platform for large cross-border payments between financial institutions. The ongoing lawsuit against Ripple by the SEC has created uncertainty in the market, but recent court rulings in favor of Ripple have fueled optimism among investors. If the legal issues are resolved favorably, I believe XRP could see significant growth.
Investing in cryptocurrencies is never without risk, and it’s essential to do thorough research before making any investment decisions. That said, these four cryptocurrencies have shown impressive performance this year, outperforming the Nasdaq in some cases. I believe they are worth keeping an eye on for potential future gains.
As a final word of advice, always remember that investing should be done with caution and a sense of humor. After all, if you can’t laugh at yourself and the occasional market volatility, then maybe investing isn’t for you!
Additionally, despite numerous stocks achieving double and triple their usual annual growth rates during this period, prominent cryptocurrencies still managed to exceed a 100% increase in value over the course of the year.
After numerous years of functioning, securing significant victories against SEC regulators in U.S. courts, and having exchange-traded funds (ETFs) on Wall Street for two of them, the cryptocurrencies listed below present a lower level of investment risk than they ever have previously.
Investing in these digital assets doesn’t make it devoid of risks any more than investing in stocks such as Apple or Amazon does. However, times have changed, and it is no longer a mystery for educated investors to question the authenticity of the soaring prices they see in cryptocurrency reports.
At the moment, they’re experiencing an uptrend in a prolonged period of growth followed by decline, often referred to as a boom and bust cycle. This implies that their exchange rates versus the dollar have been climbing steadily over several months and might continue to rise until all market demand is met. Afterward, it’s likely that there will be a correction or downturn in prices for the rest of this market cycle.
Four Big Cryptos That Beat Wall Street
breakdown of each asset, highlighting its success in surpassing returns from technology stocks in the Nasdaq Composite this year. For clarity, it might be helpful to know that the NASDAQ, which serves as a comprehensive measure of US tech stock performance, experienced a 33% growth from January 1 through December 26.
Meanwhile, the four cryptocurrencies featured here gained accordingly:
- Bitcoin: 126%
- Ethereum: 49%
- Solana: 75%
- Ripple: 247%
In comparison to the Nasdaq’s historical performance, these cryptocurrencies managed to achieve similar or even greater returns on investment within a single year. It’s worth noting that this isn’t the first time such impressive annual gains have been seen in the crypto market.
1. Bitcoin (BTC) Yearly Performance 2024: +126%
Bitcoin, being the pioneer and leading cryptocurrency, kickstarted the entire crypto industry upon its launch in 2009. As of Thursday, the cumulative value of the Bitcoin economy surpassed a staggering $1.9 trillion.
From January 1st until December 26th, the price of Bitcoin increased by 126% compared to its average opening price on cryptocurrency exchanges during the year. Being the most traded, liquid, and established cryptocurrency, it benefits from a relatively lax regulatory environment in the US and offers regulated investors various ETF products available on Wall Street for purchase, reducing risk compared to using crypto exchanges or self-custody methods.
Besides maintaining its distinct advantage, Bitcoin outperformed the Nasdaq this year for three additional nearby explanations:
1. Market Volatility: Bitcoin’s price fluctuations were more dramatic than those of the Nasdaq, attracting investors seeking higher returns.
2. Institutional Adoption: A growing number of institutional investors have entered the Bitcoin market, driving up its value.
3. Mainstream Acceptance: More businesses and financial institutions began accepting Bitcoin as a form of payment this year, increasing demand and contributing to its price surge.
- The Wall Street ETF approval for Bitcoin by the SEC on Jan. 10
- The four-year BTC supply halving on Apr. 20
- The reelection of former President Donald Trump on Nov. 5
As a crypto investor, I find Bitcoin’s unique appeal lies in its robust and secure management of a strictly limited supply of distinct, sequentially numbered digital assets within its network. Economists who grasp its mechanics often liken it to digital gold, which can be effortlessly transferred across borders just like an email.
2. Ethereum (ETH) Yearly Performance 2024: +49%
Drawing inspiration from the concepts and structure of Bitcoin, Ethereum emerged as the pioneering blockchain platform capable of accommodating a vast number of users in the mainstream market. Similar to the role of currency within Bitcoin’s network, smart contracts on Ethereum offer functionalities beyond simple bookkeeping.
The concept boasts immense potential, with limitless opportunities: Intelligent agreements, or Decentralized Financial (DeFi) systems such as Ethereum, provide the means for programmable currency.
Picture yourself composing a message on a hundred-dollar bill, stating that whoever fulfills the conditions stated here will win the one hundred dollars contained within it.
Additionally, you might choose to simply pin that note up on a bulletin board at an office complex, and it wouldn’t progress until someone personally takes action based on the note’s instructions (such as placing a new note with the solution to a challenging issue, which would cost over $100 to resolve independently).
This emerging technology holds the potential to significantly transform various sectors such as finance, law, accounting, insurance, and supply chain management, much like the Internet reshaped publishing and retail commerce.
Ethereum beat the Nasdaq this year because of:
- The Wall Street ETF approval for Ether by the SEC on Jul. 22.
- The Federal Reserve’s pivot to cutting interest rates lower on Sept. 18
- The reelection of former President Donald Trump on Nov. 5
According to the analysis team at CryptoQuant, certain significant indicators related to Ethereum suggest a continuing optimistic market forecast for Ether tokens in the near future.
3. Solana (SOL) Yearly Performance 2024: +75%
Drawing inspiration from Ethereum’s accomplishments, Solana represents another smart contract and DeFi platform that emerged with an advantage over its predecessor – boasting faster network speeds and lower transaction fees. Although Ether currently leads as the dominant cryptocurrency in the DeFi market, Solana has been steadily working to narrow this gap.
There is still a significant distance for it to cover, with a market value of around $90 billion on Thursday contrasted with Ethereum’s $400 billion market cap. However, analysts tracking the cryptocurrency market are keeping a close watch on these two digital currencies to predict trends in the blockchain economy and crypto exchange markets in the future.
This year, Solana outperformed Bitcoin in terms of Return on Investment (ROI), although Bitcoin had a stronger start. However, Solana significantly surpassed Ethereum in this growth period. Additionally, Solana’s 33% increase in value from January 1st to December 26th surpasses one of the best years for growth in Nasdaq.
Solana beat the Nasdaq this year because of:
- High network throughput and low fees compared to DeFi competitors
- The Federal Reserve’s pivot to low interest rates and Trump’s reelection
- The outstanding success of Solana meme coins against its competitors
Among the most notable Solana-themed memes this year were Bonk, Pudgy Penguins, Dogwifhat, Fartcoin, Popcat, Gigachad, Goatseus Maximus, and Baby Doge Coin. However, novice crypto investors who might be unfamiliar with the world of memes may find it safer to focus on the fundamental SOL tokens instead.
4. Ripple (XRP) Yearly Performance 2024: +247%
Ripple’s XRP, similar to one of the initial altcoins modeled after Bitcoin, functions as a decentralized, self-operating system specifically designed for facilitating substantial cross-border transactions among financial institutions.
2021 has seen XRP tokens by Ripple emerge as top gainers, primarily due to accumulated interest as investors anticipate a resolution to the ongoing SEC lawsuit. The U.S. Securities and Exchange Commission brought charges against Ripple, alleging that they sold unregistered securities in the form of XRP tokens for their decentralized payment system.
Last year, three U.S. court decisions favored Ripple, and another ruling in November of this year has paved the way for XRP’s exceptional growth compared to other major cryptocurrencies in 2021.
Ripple beat the Nasdaq because of:
- Several decisive wins against the SEC in court and hype around potential resolution
- The Fed’s low rate pivot and Donald Trump’s reelection
- Ripple’s aggressive push for business partnerships around the world
Based on the latest technical evaluation, it seems that the upward trend for XRP’s price may persist so long as the average trading values surpass this crucial support threshold.
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2024-12-29 13:41