The cryptocurrency market has been in its usual state of ups and downs throughout 2023. If you’re a trader in this space, you must have experienced it all as you sort through the hundreds of new altcoins. For new investors in the crypto landscape, it is important to be informed about the current and predicted performance of cryptocurrency assets.
This is why we’ve combed through all the best-performing cryptos to bring you the list of the top five assets you should consider investing in. These digital currencies have innovative tech and solid fundamentals behind them, as illustrated in their strong market performances.
Bitcoin
Bitcoin was launched in 2009 as the world’s first-ever cryptocurrency by Satoshi Nakamoto. Today, the crypto has a market cap of over $670 billion. Bitcoin operates on the blockchain network and relies on the Proof-of-Work consensus algorithm for security. This algorithm also helps to deter fraudulent transactions.
Throughout the years, we have seen a massive transformation in the cryptocurrency ecosystems, and Bitcoin is no different. It has evolved to include BRC20, which refers to token creation and management. This allows for tokenized assets and decentralized applications that can now be associated with the Bitcoin blockchain, much like Ethereum’s DApps.
Besides BRC20, we also have the Bitcoin Ordinals, an innovative numbering protocol that itemizes individual Bitcoin units and satoshis. This inscription process allows for unique identification for all Bitcoin transactions, thus transforming satoshis into NFTs.
A lot is going on around Bitcoin to grab your attention, but what an interested investor wouldn’t want to miss out on is the Bitcoin Halving event slated for 2024. This is a significant event that is tipped to bolster Bitcoin’s price. At the moment, the price of Bitcoin has stabilized around the $34,500 mark, which is a marked growth of 1,500% from its price of about $23,000 at the beginning of 2023.
With all that is planned for the Bitcoin ecosystem, experts predict the price to hit the $40,000 mark in 2024 as the crypto gives its all to maintain its aura as the world’s original digital currency.
Ethereum
Second to Bitcoin in terms of revenues and market share, Ethereum has a market capitalization of over $220 billion. This altcoin stands out for being both a cryptocurrency and a blockchain platform. It’s one of the most highly preferred platforms for developing dApps. This is due to its automatic code execution, smart contracts, NFTs, and potential applications.
Early this year, Ethereum was upgraded by introducing the EIP-4895, which allowed “unstaking,” a unique feature for staked ETH on the Beacon Chain. With this upgrade, Ethereum also bolstered its security, stability, and scalability.
Besides, Ethereum unveiled the Ethereum Cancun Deneb Upgrade, which aims to enhance usability, security, scalability, and a robust infrastructure for dApps. What all these upgrades have also done is give ETH more value, hence the remarkable growth in its price. As of the beginning of November 2023, it is sold for $1,880. Experts strongly believe that Ethereum’s price will easily hit the $2,000 mark in 2024 and a further upward progression should be expected. If you’re considering investing in this crypto, now might be the perfect time to buy Ethereum, as we anticipate a price hike in the near future.
Binance Coin
Binance Coin is the native token of the Binance exchange platform and has a market capitalization of more than $35 billion. It was initially created as a utility token in 2017 but has evolved to support a whole ecosystem of different applications and use cases.
Like the previous two digital assets, BNB has seen its fair share of upgrades, as evidenced by its introduction of the DappBay platform. The platform features a host of services that have helped drive up demand for BNB. In addition to the platform, BNB has now expanded to accommodate staking via Strader Lab.
Second only to Ethereum in terms of Total Value Locked, Binance is among the leading DeFi protocols in the crypto realm.
Those who bought BNB when it was only trading at $40 in January 2021 have been reaping huge profits when you consider its price as of early November 2023 is $247. This 6,175% gain represents the altcoin’s resilience over time. If experts’ predictions are anything to go by, you can expect BNB’s price to reach $250 in 2024 and the $300 mark in the near future.
XRP
Ripple Lab’s XRP token commands a $35 billion market cap. The swift and cheaper transactions on the Ripple blockchain network make it an attractive investment option.
One thing that stands out with XRP is that it’s tailored for cross-border payments and can enhance liquidity in finance. Besides, the Ripple Protocol Consensus Algorithm enables quick validation of transactions while using less energy.
In July 2023, the landmark ruling that declared XRP as not being a security significantly pushed its price up by 70%. Overall, the asset’s price has gone from $0.3 in early 2023 to its current price of $0.68 in November 2023, representing a 225% increase. Given its recent winnings in court, XRP will attract more investors and could push its price beyond the $1.00 mark in 2024.
Solana
Solana is one of those few surprises that most people thought wouldn’t make it big in the realm of cryptocurrencies. However, it has exceeded many expectations. With a market cap of $17 billion, it continues to be a darling to many due to its speed and scalability.
Top on Solana’s service list is the provision of dApp development infrastructure and financial services. To secure transactions, this crypto asset uses the Proof-of-History consensus algorithm.
With a robust ecosystem, Solana is strengthening its position in the crypto space with strong partnerships. In April 2023, Helium transitioned to Solana Network — Helium is the largest LoRaWAN network in the world.
Last November, SOL was trading at around $14, and now it stands at $40, which is a 285% improvement. The much anticipated Bitcoin ETF move is also expected to influence SOL’s future price, and experts believe that the crypto could reach the $75 mark in the near future.
Where to Start?
2023 has seen its fair share of cryptocurrency highs and lows. Digital assets that have performed better so far have provided investors with potential opportunities to explore. Bitcoin, Ethereum, XRP, Binance Coin, and Solana present unique value and growth potential.
Nevertheless, when putting your money in such investment assets, you must acknowledge the risk of the market’s volatile nature. A thorough research into each potential coin should help you pick your favorite and most profitable option from this list of the top five most profitable cryptocurrencies in 2023.
