Find answers to your questions about cryptocurrency investing. Learn about trends, promising coins, market risks, and whether investing in cryptocurrencies is wise in 2024.
Despite a boom in December 2023, with crypto market capitalization increasing by over 16% and reaching $1.66 trillion as of February 6th, we are still in the shadow of 2021 highs. I realize that there is.
Against this backdrop, 2024 started with good news. Bitcoin (BTC) has finally agreed to the SEC’s approval of a Spot Bitcoin ETF, signaling institutional acceptance that could inject new capital into the market.
Expectations for Bitcoin to halve in April signal a possible supply shock, fueling speculation that could redefine market dynamics.
Meanwhile, it is expected that the gas fee for Ethereum (ETH) will be lowered in a future update. It is predicted that this could reduce average transaction fees to less than $0.01, making Ethereum more competitive and attractive to users.
There are also predictions that cryptocurrencies will become the internet’s native currency as AI assistants adopt them for transactions, painting a picture of a sector on the verge of mainstream adoption.
But at this crossroads, the big question is: will cryptocurrencies still be a good investment in 2024? Let’s check it out.
Is it worth investing in cryptocurrencies in 2024?
Let’s explore the question of whether cryptocurrencies are still a good investment in 2024 and uncover some key trends and factors that could impact the crypto market this year.
Bitcoin halving and ETF
The Bitcoin halving event scheduled for April 2024 will reduce mining rewards from 6.25 BTC to 3.125 BTC per block. Historically, halving events have led to significant price increases. For example, following the halving in 2020, the price of Bitcoin soared to an all-time high in 2021.
These factors, coupled with the approval of a spot Bitcoin ETF in the US, could have a significant impact on Bitcoin’s value, whether with a bullish or bearish outcome, but it remains to be seen. yeah.
Stablecoins and digital payments
The stablecoin is predicted to exceed Visa’s trading volume. Such developments could increase the utility and value of stablecoins, making them attractive elements of the crypto investment environment.
On the other hand, adopting stablecoins in everyday transactions could expand their acceptance and become the basis for future digital payments.
Ethereum, Layer 2 Network, TVL
Ethereum’s continued development, especially upgrades like EIP-4884’s protodunk sharding, could improve scalability and reduce transaction fees, driving Ethereum’s revenue to double to 5 billion in 2024. It is predicted that it will be $.
Meanwhile, layer-2 solutions such as Polygon (MATIC) and Arbitrum (ARB) aimed at addressing Ethereum’s scalability issues are also likely to gain traction as Ethereum becomes mainstream.
Amid this, overall Total Value Locked (TVL) data suggests the ecosystem has rebounded from less than $70 billion in March 2023 to nearly $106 billion as of February 6, according to CoinMarketCap. It is said that they are doing so.
Enterprise deployment and defi integration
The increasing involvement of companies in the cryptocurrency space shows that cryptocurrencies are gaining mainstream acceptance.
Additionally, moves to integrate know-your-customer (KYC) protocols within defi platforms could attract institutional liquidity, potentially making the defi sector more attractive to traditional investors.
The growth of SocialFi, the convergence of DeFi and social media, and the integration of cryptocurrencies into gaming and virtual worlds will expand the potential of cryptocurrencies, potentially penetrating various sectors.
These innovations are expanding the use cases for crypto assets, with platforms similar to friend.tech in particular gaining mainstream attention and opening up new investment avenues as they mark the beginnings and monetization potential of SocialFi applications. It may open.
What is the best cryptocurrency to invest in now?
Focusing on recent growth and potential, let’s take a look at which coins are trending and where they’re headed, keeping in mind the volatility and risks inherent in the crypto market.
Pendle has been on a significant upward trend, trading at around $3.20 as of February 6th, reporting 140% growth in the past 30 days due to its unique position in the DeFi space.
Pendle enables the tokenization and trading of yield-bearing assets, giving users more flexibility and control over their yield. This, coupled with strategic investments and partnerships like his Binance Labs in 2023, suggests a budding ecosystem.
This protocol’s multi-chain expansion and focus on both retail and institutional users could further increase the value of its ecosystem and the price of PENDLE. However, like any asset, it faces market volatility and risk, especially in the short term.
Sui (SUI) has grown over 80% in the last month and is trading at $1.54 as of February 6th.
Sui is a blockchain platform designed for high throughput and low latency, supporting a variety of decentralized applications (dapps).
Its growing popularity can be attributed to its technical capabilities such as scalability and developer-friendly features.
Investors may be optimistic about Sui’s chances of capturing a significant portion of the DAPP market, which has been trending upward recently, but the usual cautions apply with any new blockchain platform, including adoption challenges and competition. .
Ethereum Name Service (ENS)
ENS has also seen significant growth of over 70% over the last month, trading at $22.15 as of February 6th.
ENS prices have soared more than 20% in the past 24 hours thanks to a partnership with GoDaddy, making it easier for users to link their Web2 domain names to .eth domains at no additional cost.
ENS acts as a decentralized, open, and extensible naming system on the Ethereum blockchain, converting human-readable Ethereum addresses into machine-readable alphanumeric codes.
This system mirrors the Internet’s DNS by making Ethereum addresses more user-friendly and accessible, similar to how DNS simplifies the accessibility of websites for users.
Should you invest in cryptocurrencies?
Although the above coins show promising trends based on their innovative utility and growing ecosystem, investing in cryptocurrencies remains highly speculative.
Prices can fluctuate and you should be prepared to lose your entire investment.
Diversification and thorough research are critical, and it’s always a good strategy to consider professional financial advice before making any investment decisions.
Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
What are the best cryptocurrencies to invest in in 2024?
To identify the best cryptocurrencies to invest in in 2024, you need to consider several factors, including technology, market trends, and adoption rates. Considering recent developments, Pendle, SUI and ENS show significant growth and potential due to their unique services and strategic partnerships. However, the cryptocurrency market is highly volatile, so you should approach your investments with caution.
Is investing in cryptocurrencies good or bad?
Investing in cryptocurrencies can bring significant returns, but comes with high risks due to market volatility, regulatory changes, and technical uncertainties. It is essential to conduct thorough research, understand the technology behind each project, and assess your risk tolerance before investing. Always be prepared to lose your investment and never invest more than you can afford to lose.
What are the best coins to buy now?
Determining the best coin to buy now depends on a variety of factors, including market performance, technical utility, community support, and future potential. Major cryptocurrencies such as BTC and ETH are considered safer options due to their established presence and ongoing development. However, new projects with specific use cases or technological innovations may provide opportunities for growth. It is important to evaluate each coin’s fundamentals, market trends, and risk factors. Always keep in mind that investing in cryptocurrencies can be highly volatile and unpredictable, so proceed with caution and consider diversification to minimize risk.