Bitcoin vs Its Rivals: Exploring the Top Cryptocurrencies of 2024
Bitcoin (CRYPTO: BTC) is up 45% this year, leading the pack of major cryptocurrencies, while Ethereum (CRYPTO: ETH) has only managed a 5% gain. Despite Bitcoin’s robust performance, several cryptocurrencies have outpaced it significantly. Some are up by 100% or more in 2024 and look well-positioned for further growth by 2025. Let’s delve into these emerging assets.
Meme Coins: The New Contenders
It wasn’t long ago that Dogecoin was the most recognized meme coin. Today, the meme coin landscape is crowded, with thousands of options available. Remarkably, a new cat-themed meme coin has skyrocketed nearly 15,000% this year, achieving a billion-dollar market cap.
Image source: Getty Images.
Focusing on meme coins valued over $2 billion, we identify three standout performers: Dogwifhat, up 1,495%; Pepe, up 621%; and Shiba Inu (CRYPTO: SHIB), up 65%. Shiba Inu is familiar to seasoned crypto investors as a previous star during the last bull market.
However, investing in meme coins carries substantial risks. Their values can fluctuate significantly, making them volatile investment choices. They may attract those seeking short-term gains, but in the long term, they could destabilize your portfolio.
AI Crypto Tokens: A Growing Trend
Another category showing promise is AI crypto tokens, which are gaining traction amid the ongoing artificial intelligence investment wave. These cryptos typically serve as a payment method for AI-related services within specific blockchain platforms. Instead of using traditional currency, you would use an AI-specific crypto token.
Noteworthy entries in this sector include Bittensor (CRYPTO: TAO) and Artificial Superintelligence Alliance (CRYPTO: FET). Both currently boast valuations exceeding $3 billion and rank among the top 30 cryptocurrencies by market cap.
Bittensor has generated significant interest, appreciating over 160% in the last month. It functions as a decentralized network for the development and sharing of AI models, aiming to create a decentralized AI organization that could rival major tech companies. Investors speculate it might see substantial growth as investment in AI continues to surge.
Sui: The Emerging Ethereum Challenger
This year, Solana (CRYPTO: SOL) was the leading rival to Ethereum, clocking in over 900% growth. In 2024, however, Sui (CRYPTO: SUI) has emerged with a 137% increase.
Several factors contribute to Sui’s rise, including its recent integration of Circle’s USDC stablecoin, which could enhance liquidity across its decentralized finance (DeFi) ecosystem. Additionally, a major upgrade was announced, positioning Sui to offer even faster transaction speeds than Solana, making it more competitive in DeFi and gaming sectors. Some analysts now label Sui as a potential “Solana killer.”
While Sui’s prospects seem bright, history shows that Ethereum has successfully withstood challenges from various competitors. Past challengers like Cardano and Avalanche have faltered, each seeing declines over 30% this year as investors seek newer options.
Longevity of Cryptocurrencies: Can They Surpass Bitcoin?
Many cryptocurrencies are capable of outperforming Bitcoin short-term, as witnessed this year. The real question remains whether these assets can maintain their success over the long term. In ten years, which would you prefer to hold: Bitcoin or a meme coin? Unless you are an extremely aggressive investor eyeing quick returns, investing in Bitcoin may offer the most reliable option as it continues to lead the crypto landscape.
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Dominic Basulto owns positions in Bitcoin, Ethereum, Fetch, SUI, and Solana, and The Motley Fool holds positions in and recommends Bitcoin, Ethereum, Fetch, SUI, and Solana. The Motley Fool also has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
