Bitcoin
2 Cryptocurrencies to Buy Whether Bitcoin Hits Another All-Time High or Not
Ethereum and Solana are expected to rise further in 2024, even if 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 its next destination. The crypto looked set 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 right now: Ethereum (ETH -3.82%) and Solana (SUN -3.18%). Both will potentially rise further in 2024, regardless of whether Bitcoin moves forward or not.
Ethereum
The great catalyst for Ethereum now is the recent approval of eight new Ethereum exchange-traded funds (ETFs). They are ready to start trading soon, and when they do, it could lead to a huge influx of money from new Ethereum investors.
While this influx of cash is unlikely to come close to the amount of money that flooded into the new spot Bitcoin ETFs, it is, however, expected to be significant. For example, JPMorgan Chase predicts that the influx of new money into spot Ethereum ETFs could reach $3 billion in the next six months. And K33 Research, an independent crypto research firm, believes the number 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% year to date, has some investors giddy. For example, some think Ethereum could outperform Bitcoin in the next six months simply due to the potential impact of the ETF boom. When you add the fact that Ethereum continues to release new technological upgrades to its main blockchain, there is increasing reason for optimism.
Solana
Like Ethereum, Solana increased 70% in the year. This comes after a monster year in 2023 when it soared by more than 900%. Although Solana’s upward trajectory has cooled a bit lately, there is still potential for a huge upward move in the second half of the year.
After taking a quick look at Solana’s key metrics, you’ll understand why. Almost every key metric has seen huge growth over the past 12 months. The number of users is increasing, transaction activity is increasing, and the size of the Solana blockchain ecosystem continues to grow by leaps and bounds.
In large part, this has to do with growing consumer adoption. Solana has become the preferred blockchain for buying, selling and launching meme coins. Even big celebrities (well, OK, B-list and C-list celebrities) are getting in on the action, with rappers, reality TV stars, and musicians launching their own meme coins on Solana. Since these celebrities have millions of social media followers, it’s possible to argue that Solana is getting a free marketing campaign aimed at its main user demographic (young, tech-savvy, and with plenty of disposable income to spend on crypto).
The good news is that all of this is not correlated with what is happening on the Bitcoin blockchain, so Solana could rise even higher even if Bitcoin continues to trade sideways.
The Layer 1 investment thesis
Ethereum and Solana share one important characteristic in common: they are both Layer 1 blockchains. This means they are the fundamental building blocks of the blockchain world. When it comes to any key blockchain niche – like non-fungible tokens (NFT), decentralized finance (DeFi), blockchain gaming or decentralized Web3 applications – the central starting point is always Layer 1.
This is what excites me about Ethereum and Solana as potential alternatives to Bitcoin. If you believe the general notion that a crypto market rally should help inject new life into every niche of 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 out there. Even if you’re on the sidelines 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. Dominic Basulto has positions in Bitcoin, Ethereum and Solana. The Motley Fool has positions and recommends Bitcoin, Ethereum, JPMorgan Chase, and Solana. The motley fool has a disclosure policy.