Bitcoin Hits $100,000: A New Era for Cryptocurrencies

On Dec. 4, Bitcoin (CRYPTO: BTC) crossed the $100,000 price level for the first time. This remarkable achievement highlights a post-election rally that propelled Bitcoin up by more than 40% in a very short time. Even with the recent volatility in the crypto market, it has risen over 110% in 2024.

However, Bitcoin isn’t the only cryptocurrency making headlines. Many others are also thriving as part of this broad post-election surge. Some are even outpacing Bitcoin. Let’s explore three main categories of cryptocurrencies that are currently gaining traction.

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Spot ETF Contenders

The first category we’ll look at includes cryptocurrencies that may soon be approved for spot exchange-traded funds (ETFs). These are the ones most likely to receive backing from the Securities and Exchange Commission (SEC) in 2025. Currently, only Bitcoin and Ethereum (CRYPTO: ETH) have spot ETFs. This has sparked widespread speculation about future candidates.

Among the top contenders is XRP (CRYPTO: XRP), which has surged since the election and is up nearly 250% for the year, despite a recent pullback. Much of this gain is linked to the positive sentiment about cryptocurrencies in the wake of the Trump administration.

Additionally, many investors expect that XRP could receive a spot ETF by early 2025, especially since four investment firms have already applied to offer them.

Image source: Getty Images.

Other contenders also show promising performance. For instance, Solana (CRYPTO: SOL) is up nearly 70% year-to-date. While trailing Bitcoin’s impressive gains, it outperforms Ethereum, which has risen only 43% this year.

Challengers to Ethereum

The second category includes cryptocurrencies that are positioned to rival Ethereum, which has a staggering market cap of over $400 billion. These challengers have a significant opportunity to take market share.

One standout is Sui (CRYPTO: SUI), launched in May 2023. In just 18 months, it achieved a market cap exceeding $13 billion and has surged about 380% this year, continuing to ride the post-election momentum into 2025.

When evaluating Ethereum challengers, two key types emerge. First, there are established Layer 1 blockchains like Solana, Cardano, and Avalanche, which gained popularity during the previous crypto bull market in 2020-2021. Second, there are newer blockchains launched in 2022 and 2023 that boast high efficiency. Sui’s development team includes skilled technologists from Meta Platforms (NASDAQ: META) and has secured over $336 million in venture capital funding.

Memes that Make Waves

Lastly, we have meme coins, which continue to attract attention. The popular Dogecoin (CRYPTO: DOGE) has seen its value leap by about 240% this year.

Billionaire Elon Musk’s active support has contributed to Dogecoin’s rise. Recently, he even suggested creating a government agency called the Department of Government Efficiency (DOGE) during his presidential campaign.

However, other meme coins have outperformed Dogecoin. For example, Pepe has surged roughly 1,700%, while the dog-themed Dogwifhat has jumped about 1,000%. Even outside the top 50 cryptocurrencies, many have recorded large gains.

Despite the excitement, investing in meme coins carries risks. Trends can shift rapidly; what’s popular today may fade overnight. For instance, cat-themed meme coins were a summer sensation, replaced now by a focus on dogs. Such fluctuations highlight the speculative nature of these investments.

Best Investment for 2025: Solana?

Combining insights from all categories, my top investment pick is Solana, which lies at the intersection of all three segments. It stands out as a leading spot ETF candidate, a formidable Ethereum rival, and a key platform for meme coins. Notably, Solana experienced an astonishing increase of over 900% in 2023.

However, while Solana ranks among the five largest cryptocurrencies globally, it is crucial to remember that it carries more risk compared to Bitcoin. Therefore, do your research before investing in Solana.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Dominic Basulto holds positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool recommends Bitcoin, Ethereum, Meta Platforms, SUI, Solana, and XRP. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.