Ethereum
2 Cryptocurrencies to Buy Whether or Not Bitcoin Hits Another All-Time High
Ethereum and Solana are expected to soar in 2024, even as Bitcoin continues to trade sideways.
After Bitcoin hit a new all-time high of $73,750 in mid-March, crypto investors were understandably excited about where it might go next. The crypto seemed poised to surpass the $100,000 level this year. But Bitcoin continues to trade around the $70,000 mark, leaving some crypto investors looking for potential alternatives.
If you are one of these investors, there are two cryptocurrencies to put on your radar screen right now: Ethereum (ETH -4.19%) and Solana (GROUND -4.14%). Both could potentially skyrocket in 2024, whether Bitcoin follows them or not.
Ethereum
The great catalyst for Ethereum Currently, there is the recent approval of eight new Ethereum spot exchange-traded funds (ETFs). They are expected to start trading soon, and when they do, it could lead to a massive influx of new investors into Ethereum.
Although this influx of money is probably not close to the amount of money that has flowed into the new spot Bitcoin ETFs, it is nonetheless expected to be significant. For example, JPMorgan Chase predicts that the inflow of new funds into Ethereum spot ETFs could reach $3 billion over the next six months. And K33 Research, an independent crypto research firm, estimates that figure could be as high as $4 billion.
Image source: Getty Images.
The idea of so much new money flowing into Ethereum, which is already up 70% for the year, makes some investors dizzy. For example, some believe that Ethereum could outperform Bitcoin over the next six months, simply due to the potential impact of the ETF boom. Add in the fact that Ethereum continues to roll out new technology upgrades to its main blockchain, and there is more and more reason to be optimistic.
Solana
Like Ethereum, Solana is up 70% for the year. This follows a monster year in 2023, where it skyrocketed over 900%. Although Solana’s upward trajectory has slowed somewhat of late, there is still potential for a huge move higher in the second half.
Once you take a quick look at Solana’s basic metrics, you’ll see why. Almost all key indicators have seen considerable growth over the past 12 months. User numbers are surging, transaction activity is surging, and the size of the Solana blockchain ecosystem continues to grow by leaps and bounds.
This is largely due to growing consumer adoption. Solana has become the go-to blockchain for buying, selling and launching coins. Even big celebrities (well, OK, B- and C-list celebs) are getting in on the action, with rappers, reality TV stars, and musicians tossing their own coins at Solana. Given that these celebrities have millions of followers on social media, it’s safe to say that Solana is benefiting from a free marketing blitz aimed at its core user demographic (young, tech-savvy, and high-income). disposable income to spend on crypto).
The good news is that all of this is uncorrelated with what’s happening on the Bitcoin blockchain, so Solana can soar even if Bitcoin continues to trade sideways.
The Layer 1 Investing Thesis
Ethereum and Solana share a common trait: they are both layer 1 blockchains. This means that they are the fundamental building blocks of the blockchain world. When it comes to a key blockchain niche, such as non-fungible tokens (NFT), decentralized finance (DeFi), blockchain games or decentralized Web3 applications — the main starting point is always layer 1.
This is what excites me about Ethereum and Solana as potential alternatives to Bitcoin. If you buy into the general idea that a crypto bull market rally should help breathe new life into every niche in the blockchain and crypto world, then Ethereum and Solana should be among the biggest beneficiaries.
A rising tide lifts all boats, and Ethereum and Solana are two of the biggest boats in the market. Even if you’re on the fringes of Bitcoin, it might be time to take a closer look at Ethereum or Solana.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dominique Basulto has positions in Bitcoin, Ethereum and Solana. The Motley Fool holds positions and recommends Bitcoin, Ethereum, JPMorgan Chase and Solana. The Mad Motley has a disclosure policy.