On December 4, Bitcoin (BTC 3.88%) made headlines by crossing the impressive $100,000 mark for the first time. This surge highlights a powerful post-election rally, where Bitcoin increased by over 40% in a surprisingly short span. Even amidst recent fluctuations in the crypto market, Bitcoin has seen a staggering 110% increase in 2024 alone.But let’s not overlook the other cryptocurrencies that are also on the rise. Many digital currencies are experiencing impressive gains as part of this broader market movement. In some cases, they are even outpacing Bitcoin. Here’s a closer examination of three categories of cryptocurrencies that are thriving in this environment.
Spot ETF Candidates
The first group includes cryptocurrencies vying for the approval of spot exchange-traded funds (ETFs). Currently, only Bitcoin and Ethereum (ETH 1.96%) have successfully secured spot ETFs. This scarcity has spurred speculation about which cryptocurrency might be next in line for regulatory approval.
One standout in this category is XRP (XRP 1.51%), which has witnessed a remarkable surge since the election. Despite a recent dip, XRP is up nearly 250% this year. A significant driving force behind this enthusiasm is the optimism surrounding the anticipated approval of spot ETFs for XRP, potentially as early as 2025. Various investment firms are already seeking approval to launch spot XRP ETFs.
Other spot ETF candidates are similarly performing well. For instance, Solana (SOL 2.16%) has gained almost 70% year-to-date. While this growth does fall short of Bitcoin’s remarkable triple-digit increase, it significantly outpaces Ethereum’s 43% rise.
Ethereum Challengers
Next, we turn to what could be considered Ethereum challengers. These cryptocurrencies are positioned to potentially rival Ethereum as the leading Layer 1 blockchain. Given that Ethereum has a market cap exceeding $400 billion, the stakes are high for any competitor.
One exciting contender is Sui (SUI -1.19%), which launched in May 2023 and has quickly garnered a market cap of over $13 billion. Sui has skyrocketed by 380% this year and is following a robust post-election rally, much like Bitcoin.
When exploring Ethereum challengers with growth potential, two primary categories emerge. The first includes blockchains that experienced significant rises during the previous crypto boom of 2020-2021, such as Solana, Cardano, and Avalanche. The second encompasses newcomers launched in 2022 and 2023, offering faster and more efficient alternatives to Ethereum. Sui, for example, boasts a team of notable technologists with experience in blockchain projects at Meta Platforms (META 1.32%), having raised over $336 million in venture capital.
Finally, we can’t ignore the meteoric rise of meme coins. A prime example of this phenomenon is Dogecoin (DOGE 3.04%), which has surged by about 240% this year. Much of this surge can be attributed to the influential billionaire Elon Musk, a well-known advocate for Dogecoin. His recent suggestions during the presidential campaign to establish a Department of Government Efficiency have thrown more attention on the coin.
Numerous other meme coins are even surpassing Dogecoin in percentage gains. Take Pepe, a frog-themed meme, which is up around 1,700% this year. Or the canine-themed Dogwifhat, which has surged 1,000%. If you’re willing to venture outside the top 50 cryptocurrencies, there are memes experiencing even more remarkable growth.
However, tread carefully with meme coins. Their popularity can wax and wane in mere weeks or even days. For example, the cat-themed coins of summer have been replaced by a renewed dog fascination. Therefore, investing in meme coins often comes with extreme volatility, driven purely by speculation and market sentiment.
What is the Best Investment for 2025?
Considering all these factors, my top investment pick leans towards Solana. This cryptocurrency sits at the crossroads of the categories we’ve discussed. It stands out as a leading spot ETF candidate, an Ethereum challenger, and a favored blockchain for launching meme coins. Solana’s past performance speaks volumes; in 2023, it skyrocketed by more than 900%.
Keep in mind, though, that while Solana is one of the five largest cryptocurrencies, it carries more risk compared to Bitcoin. So, if you’re contemplating investing in Solana, ensure you do thorough research before making your move.
In this exhilarating landscape of fluctuations and opportunities, there’s a lot to explore, and many fruitful paths await the savvy investor.
