The upcoming Bitcoin (CRYPTO:BTC) The halving is one of the most anticipated events of the year for crypto investors – and for good reason. Past halving cycles have resulted in stratospheric gains for Bitcoin as well as new all-time highs. Of course, all eyes are on Bitcoin at the moment.
But even after the halving, another interesting phenomenon occurs: top altcoins tend to see huge increases in market capitalization as they follow Bitcoin higher. And in fact, some of these coins even outperform Bitcoin in the 12-month period after the halving.
With that in mind, here are three cryptocurrencies that have the potential to continue rising in 2024 and into 2025.
1. Solana
While Solana (CRYPTO: SOL) has cooled down significantly since its torrid 2023, when its value increased by more than 900%, and is still keeping pace with Bitcoin in 2024. For the year, Bitcoin is up 66%, while Solana is up 67%.
A lot of this has to do with the fact that Solana is now seen as “the next one”. ether (CRYPTO:ETH).” As Ark Invest’s Cathie Wood pointed out last November, Solana is essentially a cheaper, faster, and more efficient version of Ethereum. Just as Ethereum was among the top altcoin performers in the previous Bitcoin halving cycle, Solana could be one of the top altcoin performers in the next Bitcoin halving.
Add to that the fact that Solana has a robust mobile cryptocurrency strategy and this cryptocurrency really has a chance to differentiate itself in the upcoming bull market cycle. Unlike its competitors, Solana now has a crypto-optimized mobile phone. This opens up all sorts of new possibilities, such as the possibility of gaining a much larger share of the crypto gaming market.
2. Chain link
chain link (CRYPTO:LINK) could be a sleeper candidate to outperform Bitcoin in the next 12 months. Yes, Chainlink is only up 15% year to date, but you have to look ahead to what comes next to see how much higher it could rise in the next bull market cycle.
Chainlink is at the forefront of a long-term financial trend known as real-world asset tokenization. This refers to the process of converting real-world assets into digital assets that can live on the blockchain. You may not have heard of this trend, but many big names on Wall Street are now firmly behind it, including BlackRock (NYSE:BLK), the largest asset manager in the world. According to Boston Consulting Group, asset tokenization could represent a $16 trillion market opportunity by 2030.
If Chainlink can capture even a tiny portion of this market opportunity, it could be huge for its future growth prospects. And there are many reasons to believe this could be the case.
On the one hand, Chainlink is already the most trusted data oracle in the crypto world, providing real data for pricing financial assets. Second, Chainlink is working on a new blockchain protocol (known as CCIP or Cross-Chain Interoperability Protocol) to connect blockchains. This would make it much easier to seamlessly transfer tokenized financial assets across blockchains.
3. SingularityNET
Finally, make room in your portfolio for an AI cryptocurrency with high profit potential. As Cathie Wood of Ark Invest pointed out in her 2024 Big Ideas report, there are many opportunities at the intersection of artificial intelligence and crypto. With all the excitement surrounding AI, it can be difficult to break through the hype, but there is one AI cryptocurrency that intrigues me SingularityNET (CRYPTO: AGIX).
Unlike ChatGPT, which focuses on generative AI, SingularityNET focuses on artificial general intelligence (AGI). This is a much larger market opportunity that could be completely game-changing for humanity.
I’m not exaggerating here. The name of the token refers to “the technological singularity” – the moment when a single computer becomes smarter than all of humanity combined. (Don’t worry – SingularityNET is working on a benevolent form of AGI that won’t enslave humanity.)
While investing in any AI cryptocurrency comes with a huge risk factor, there are two factors that seem to make SingularityNET at least a little less risky. For one thing, the team behind SingularityNET, led by AI researcher Ben Goertzel, is world-class. And secondly, the current price of a SingularityNET token is only $1. That seems like a very cheap price of entry into the exciting world of super-intelligent AI.
Not all altcoins are the same
However, keep in mind that every time you start dabbling in the world of altcoins, your risk increases dramatically. So be careful when expanding your exposure far beyond Bitcoin. With Bitcoin, there is at least a proven track record after the halving. Things get even trickier when it comes to cryptos in emerging areas like asset tokenization and artificial intelligence.
However, if you want to diversify your crypto portfolio with some big winners in the post-halving cycle, three names are at the top of my list: Solana, Chainlink and SingularityNET.
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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Bitcoin Halving Ahead: 3 Cryptocurrencies to Buy Now was originally published by The Motley Fool