The Top 5 Cryptocurrencies to Invest in Right Now for the Next Bull Run

Multiple tokens with diverse opportunities for growth and innovation will increase your rewards significantly in 2024.

There are two important upcoming events that could determine the future of cryptocurrencies. First off, the much awaited launch of a spot Bitcoin ETF in the United States marks a momentous shift. With this ETF, investors are presented with a reliable and legally acceptable way to take advantage of Bitcoin’s potential.

In addition, there is a lot of excitement about the impending April 2024 Bitcoin halving event. When the mining reward for bitcoin is cut in half, it usually causes a spike in price because less of the coin are available.

Amidst these revolutionary advancements, many altcoins are garnering interest and are anticipated to witness significant expansion. Among the most notable are Ethereum (ETH), Sei (SEI), Aave (AAVE), Optimism (OP), and MetisDAO (DAO).

To find out why these digital assets can be worthwhile additions to your cryptocurrency portfolio in the future year, keep reading.

Here are some considerations for building a diversified cryptocurrency portfolio:

Major Cryptocurrencies (Blue-Chip):
Consider including well-established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) as foundational elements in your portfolio. These are often considered more stable compared to newer or smaller-cap assets.

Altcoins with Strong Fundamentals:
Look for altcoins (alternative cryptocurrencies) that have strong fundamentals, a clear use case, and active development teams. Conduct thorough research on projects that align with your investment goals and risk tolerance.

Decentralized Finance (DeFi):
Explore tokens associated with decentralized finance (DeFi) projects. DeFi has been a significant trend in the cryptocurrency space, providing various financial services in a decentralized manner. Tokens associated with successful DeFi projects could have growth potential.

NFT (Non-Fungible Token) Projects:
Non-fungible tokens represent ownership of unique digital assets and have gained popularity in various industries, including art, gaming, and entertainment. Including tokens associated with promising NFT projects may provide exposure to this growing market.

Layer 2 Scaling Solutions:
Tokens associated with Layer 2 scaling solutions, such as Optimistic Ethereum or other scaling projects, may benefit from the need to address scalability challenges on major blockchain networks.

Governance Tokens:
Consider tokens that grant governance rights within decentralized ecosystems. Holding governance tokens allows you to participate in decision-making processes related to protocol upgrades and changes.

Research and Stay Informed:
Stay informed about the latest developments, partnerships, and advancements in the cryptocurrency space. Regularly review your portfolio to ensure it aligns with your investment strategy and the evolving market landscape.

Here are five cryptocurrencies that were prominent at the time of my last update :

Bitcoin (BTC):

As the first and most well-known cryptocurrency, Bitcoin remains a popular choice for many investors. It is often considered a store of value and a digital gold.

Ethereum (ETH):

Ethereum is known for its smart contract functionality, allowing decentralized applications (DApps) to be built on its blockchain. The platform's native cryptocurrency is Ether (ETH).

Binance Coin (BNB):

Binance Coin is associated with the Binance exchange, one of the largest cryptocurrency exchanges globally. BNB is used to pay for transaction fees on the Binance platform and can be used in various decentralized applications.

Cardano (ADA):

Cardano is a blockchain platform known for its focus on security and scalability. It aims to provide a more sustainable and scalable solution for the development of decentralized applications and smart contracts.

Solana (SOL):

Solana is a high-performance blockchain known for its fast transaction speeds and low fees. It gained attention for its focus on scalability and has become a popular choice for decentralized applications.

Spot Bitcoin ETF Launch:

• The launch of a spot Bitcoin exchange-traded fund (ETF) in the United States has been a topic of discussion and anticipation in the cryptocurrency space. A spot ETF would allow investors to gain exposure to the actual underlying asset (Bitcoin) rather than futures contracts.
• A Bitcoin ETF has been viewed by some as a significant development that could bring more institutional investors into the cryptocurrency market. It provides a regulated and traditional investment vehicle for exposure to Bitcoin, potentially increasing its adoption and liquidity.

Bitcoin Halving Event (April 2024):

• Bitcoin halving events occur approximately every four years, reducing the reward that miners receive for validating transactions by half. This mechanism is built into the Bitcoin protocol and is designed to control the supply of new bitcoins entering circulation.
• Historically, Bitcoin halving events have been associated with increased attention and speculation in the market. The reduction in the rate of new supply often creates a supply-demand imbalance, potentially leading to upward price pressure.

Ethereum (ETH)

One of the top cryptocurrencies in terms of market capitalization is Ethereum. Known for its many uses, especially in the areas of NFTs and smart contracts, Ethereum has established itself as one of the most widely used currencies.

Furthermore, Ethereum provides the base upon which many other blockchains and the cryptocurrencies built atop them rest. Ethereum’s price as of December 3rd is $2,221, and its 24-hour trading volume is $55.37 billion.

The price of $ETH has dropped by 6.41% in the last day. A more thorough examination of Ethereum’s pricing suggests that the current bearish pressure is likely to last for a while. The $2,225 mark provides the token with significant support; a breach below this mark could lead to more losses.

Positively, there is a notable level of resistance at $2,449, which needs to be overcome in order to get to the $2,500 mark. The current situation suggests that bears will continue to be in control, and selling pressure is expected to persist shortly.

In 2024, it is anticipated that the price of Ethereum will fluctuate between $2,175.91 and $6,370.69.

Here are some key points about Ethereum:

Smart Contracts and Decentralized Applications (DApps):
Ethereum is renowned for introducing the concept of smart contracts, self-executing contracts with the terms of the agreement directly written into code. This allows for the creation of decentralized applications (DApps) on the Ethereum blockchain.

Ether (ETH):
Ether is the native cryptocurrency of the Ethereum platform. It is used to compensate participants who perform computations and validate transactions on the network. ETH can also be used to pay for transaction fees and interact with smart contracts.

Upcoming Upgrades:
Ethereum has been undergoing a series of upgrades to improve scalability, security, and sustainability. The transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, known as Ethereum 2.0, is a significant upgrade aimed at addressing scalability concerns.

DeFi and NFTs:
Ethereum has played a crucial role in the rise of decentralized finance (DeFi) applications and non-fungible tokens (NFTs). DeFi platforms built on Ethereum enable various financial services, such as lending, borrowing, and decentralized exchanges. NFTs, which represent ownership of unique digital assets, are often created and traded on the Ethereum blockchain.

Community and Developer Support:
Ethereum has a large and active community of developers and contributors. This community support has been instrumental in the platform's evolution and the development of a wide range of decentralized applications.

Sei (SEI)

Sei operates in a rapidly growing business and expects the blockchain industry to grow significantly in size. With the backing of major players in the field, the network improves its security and scalability.

Sei aims to improve its position in the market by carefully positioning itself to take advantage of this projected expansion. The $SEI is rising quickly, hitting an all-time high and showing positive market activity.

The price has increased above $0.50 since December 2023, during which time the ascent has been very noticeable. Technical analysis highlights the bullish trend on Sei and points to a possible continuation. As of right now, the $SEI has a market size of $1.96 billion, a 24-hour trading volume of $3.13 billion, and a price of $0.78.

The price of the $SEI has risen by 9.10% in the past day. If the current pattern continues, Sei is expected to range from $0.53 to $1.2 in 2024, indicating a positive trend and displaying hope for the latest technology advancements.

Sei price chart

The first-ever “parallelized” Ethereum Virtual Machine (EVM), combining the best features of Solana and Ethereum, is set to debut with the upcoming Sei v2 upgrade. Due to its commitment to innovative technology and growing appeal among developers, Sei is well-positioned for significant success in the cryptocurrency market.

Aave (AAVE)

Aave is an open-source, non-custodial lending platform that runs on the Ethereum network. It enables loans backed by cryptocurrencies and lets users earn interest on their cryptocurrency holdings through deposits.

One of Aave’s primary features is decentralisation; it functions without the need for conventional middlemen by automating loan arrangements through smart contracts.

The platform facilitates the lending of assets to earn interest and the borrowing of assets by providing collateral, supporting over 17 cryptocurrencies and attracting a wide user base.

$AAVE, with a market capitalization of $1.50 billion and a current price of $102.26, has made noteworthy advancements in the decentralised finance (DeFi) space. Aave is well-positioned to become a major participant in the developing and growing DeFi sector.

Here are some key points about Aave:

Lending and Borrowing:
Aave allows users to lend their cryptocurrency holdings and earn interest on their deposits. On the other hand, users can borrow assets by providing collateral in the form of other cryptocurrencies.

Flash Loans:
Aave is known for introducing the concept of "flash loans," which are uncollateralized loans that must be borrowed and repaid within the same transaction block. Flash loans have been utilized for various purposes within the DeFi space.

Governance Token (AAVE):
AAVE is the native governance token of the Aave protocol. Holders of AAVE have the ability to participate in the governance of the platform, proposing and voting on changes to the protocol.

Interest Rate Model:
Aave uses a unique interest rate model that adjusts interest rates dynamically based on the supply and demand for each asset. This allows for more efficient capital allocation within the protocol.

Security and Audits:
Aave places a strong emphasis on security and has undergone various audits to ensure the safety of user funds and the integrity of the protocol's smart contracts.

MetisDAO (Metis)

MetisDAO distinguishes itself from other Layer 2 scaling protocols by allowing users to conduct transactions on the Ethereum Blockchain more quickly and affordably while also growing its ecosystem projects and tools.

One notable achievement is the Ecosystem Development Fund (EDF), which is made up of 4.6 million $METIS tokens and was implemented by the MetisDAO Foundation, the organisation that oversees Metis. With this calculated approach, the Metis ecosystem will hopefully flourish, liquidity will be improved, actions will be rewarded, and adoption will be promoted.

The METIS is currently selling for $86.52, and its 24-hour trading volume is $47.23 million. In the latest day, the price of $METIS dropped by -3.11%, but in the previous 30 days, it had risen by an astounding 270%.

From a technical perspective, $METIS shows a strong picture, with resistance levels at $94.67 and $103.76 and support levels at $85.58 and $76.49. Relative Strength Index (RSI) analysis indicates that the $METIS price may rise as a result of an overbought market position, as indicated by the RSI value of 70.08.

MetisDAO and its associated token Metis (METIS) are part of the blockchain and cryptocurrency space. MetisDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. The project aims to provide infrastructure and tools for creating decentralized applications (DApps) and decentralized autonomous companies (DACs).

Key features and aspects of MetisDAO may include:

Layer 2 Scaling:
MetisDAO is designed to operate as a layer 2 scaling solution on the Ethereum blockchain. Layer 2 solutions aim to improve scalability and reduce transaction fees by conducting certain processes off-chain while still relying on the security of the Ethereum mainnet.

Decentralized Autonomous Companies (DACs):
MetisDAO supports the creation and management of decentralized autonomous companies. These entities are governed by smart contracts and can operate in a decentralized manner with predetermined rules and governance structures.

Token (METIS):
METIS is the native utility token of the MetisDAO ecosystem. It may be used for various purposes within the platform, including governance, staking, and participating in the ecosystem's services.

Tools for DApp Development:
Metis provides tools and infrastructure to facilitate the development of decentralized applications. This includes features such as decentralized identity, decentralized storage, and other services to simplify the creation of DApps.

Since the cryptocurrency space is dynamic, and new developments can occur, it's essential to check the latest information, official announcements, and community updates regarding MetisDAO and METIS. Explore the project's official website, whitepaper, and community channels for the most current details.

As with any investment in the cryptocurrency space, it's crucial to conduct thorough research and understand the risks involved before making any decisions. If you are interested in investing in MetisDAO or METIS, consider consulting with financial professionals and staying informed about market trends and regulatory developments.

Optimism (OP)

It’s becoming increasingly common to be optimistic, particularly in the growing Web3 game industry. The protocol exhibits significant growth indications, including considerable rises in both network traffic and revenue. With these favourable characteristics, Optimism is positioned as a viable competitor in the changing field of Layer 2 solutions.

The Optimism token, which is presently trading at $3.59, has seen a decrease in price despite the increased interest and adoption. Over the past seven days, the price of $OP has dropped by 11.97%, which might be attributed to a number of reasons, including market mood and the overall state of the economy.

However, despite the recent price dip for its native token $OP, Optimism has seen an impressive 270% increase since January 2023. This substantial price surge reflects the momentum building behind Optimism, indicating further growth potential in 2024.

Optimism refers to a Layer 2 scaling solution for Ethereum known as Optimistic Ethereum (OΞ). Optimistic Ethereum is designed to improve the scalability of the Ethereum blockchain by using an optimistic rollup approach. It aims to provide faster and more cost-effective transactions while maintaining compatibility with existing Ethereum smart contracts.

Key points about Optimistic Ethereum include:

Layer 2 Scaling:
Optimistic Ethereum operates as a Layer 2 solution, building on top of the Ethereum mainnet. Layer 2 solutions aim to address scalability issues by processing transactions off-chain and then periodically submitting summaries to the Ethereum mainnet.

Optimistic Rollup:
The term "optimistic" refers to the optimistic rollup consensus mechanism used by Optimistic Ethereum. In this approach, most transactions are processed off-chain, and the validity of these transactions is checked on-chain only if a dispute arises.

Reduced Transaction Costs and Faster Transactions:
By processing transactions off-chain, Optimistic Ethereum seeks to significantly reduce transaction costs and increase the speed of transaction confirmations compared to the Ethereum mainnet.

Bridge to Ethereum:
Users can bridge their assets from the Ethereum mainnet to Optimistic Ethereum and vice versa. This allows for interoperability between the two networks, enabling users to benefit from the advantages of Optimistic Ethereum while still having access to the broader Ethereum ecosystem.

Community Support:
Optimistic Ethereum has gained support from the Ethereum community and various projects interested in leveraging its scaling capabilities. However, like any technology in the blockchain space, adoption and success depend on various factors.