Table of Contents
Table of Contents
Table of Contents
Cryptocurrencies keep conquering the world of finance, providing unique opportunities for investors. In this article, we will take a look at seven coins of great promise that are expected to be in the spotlight by the end of this year.
How To Spot the Next Big Cryptocurrency?
The beginning of 2024 cannot be called thriving for the crypto market. While leading cryptocurrencies such as Bitcoin or Ethereum have passed key resistance zones, many altcoins have become significantly cheaper this year, which may be a good time to expand your investment portfolio in the long run. The crypto industry constantly changes when new freshmen appear and test established norms. Bitcoin and Ethereum have maintained their dominance in the crypto space, although multitudinous competitors are striving to claim leadership. The pressing question for many is: which cryptocurrency will overtake Bitcoin?
Below we will underline several ways to identify the next cryptocurrency to explode 2024:
- Having an idea and enough knowledge about the cryptocurrency marketplace will help you understand how digital currencies work in reality and identify the key players;
- By identifying the journey of cryptocurrency since its inception you will be able to decide for yourself whether it is worth investing in it or not;
- By doing research you will be able to establish which coins will be the most popular and have a chance of being accepted as currency;
- Considering the design behind the token and how much it beats its competitors will give an idea of whether a blockchain-based project has a better chance of becoming more successful than others;
- Investing in those digital currencies that have a high level of supply in the market is always preferable. The reason is quite obvious: they have more chances to grow in value if the demand increases due to limited supply.
- Looking at the trading volume of a coin is probably one of the best methods to gauge its popularity and current usage.
- By paying attention to things like the number of project updates, the forks created, the observers, etc. you can always clarify the level of developer activity;
- By scrutinizing platforms such as Twitter, Telegram, forums, and Reddit you can find out to which extent a cryptocurrency is the focus of attention.
Identifying Catalysts for Explosive Growth and Fall
While some cryptocurrencies have a stable value compared to similar currencies or are directly backed by the value of precious metals, such as those issued by Goldman or DigixGlobal, most have extreme rates depending on a number of factors below:
- Supply and demand: if a commodity is scarce and there is great demand for it, its price goes up. Bitcoin, for example, can have a maximum of 21 million coins with a constant rate of its creation.
- Energy consumption: the electricity required to verify the security of the blockchain and generate the currency is very high (in fact, there is a serious environmental problem in this regard), which is an inherent cost that determines the price of the currency and its transactions.
- Real utility: if a cryptocurrency has more use cases than just an investment (e.g. as a means of payment), its value grows.
- Large investors: so-called “whales” are investors who have purchased a large volume of cryptocurrency, and their massive buying and selling transactions can change the price immediately.
- Excess offer: new cryptocurrencies are appearing every day. Some of them join the ranks of existing projects, while others in turn integrate new technologies or offer really interesting and innovative services. This market saturation creates doubts among investors and users, who do not know which one to choose or which cryptocurrency will shoot up, and diversify their investments too much, resulting in a loss of capitalization of the major cryptocurrencies.
- Legislation and regulation: without a doubt, this is one of the factors that has contributed the most to the recent decline in cryptocurrency market capitalization. Governments in countries with large cryptocurrency investors, such as China and South Korea, have introduced laws and projects to control the market and even ban certain related activities, sparking a wave of selling in the face of an uncertain future.
Top 7 following cryptocurrencies to explode in 2024
What is the next big cryptocurrency to explode in 2023? The world of cryptocurrencies is in constant evolution, so it is not easy to predict which crypto will take off by the year’s completion. However, based on current trends and market analysis, we can identify several promising coins that show significant potential and innovation, positioning themselves as strong competitors in the crypto space in 2023.
Tether is a type of “stablecoin” designed to be a less volatile alternative to Bitcoin because it is tied to another asset. In the case of Tether, that asset is the US dollar. In value terms, USDT typically has a 1-to-1 ratio with the US dollar, meaning it is less volatile than cryptocurrencies such as BTC and ETH, with “typically” being the keyword.
With a market value of $83.5 billion, Tether is the largest stablecoin and the third-largest coin overall. It is also the most traded coin and cryptocurrency investors use it to store funds or make transactions using funds they want to protect from the price fluctuations that Bitcoin, Ethereum, and other volatile cryptocurrencies are subject to.
Binance Coin (BNB) is gearing up for a bullish rally. The trigger for that will be the BNB Chain updates that the project team is currently working on. BNB dedicates about a fifth of its profits each quarter to permanently getting rid of BNB tokens, or “burning,” which raises the value of the remaining tokens.
According to Seeking Alpha, Binance being the largest cryptocurrency exchange in terms of trading volume is also fast and scalable and is in the process of building a more regulator-friendly platform, which could be crucial to its longevity and widespread adoption, especially in light of the collapse of the rival FTX exchange.
Decentraland is a virtual reality game on the Ethereum blockchain that uses the MANA token as the in-game currency. Users can purchase goods and services, buy land, and visit other players, as well as create and monetize their content. MANA is also the second largest in-game cryptocurrency by market capitalization.
While Decentraland competes with cryptocurrencies such as The Sandbox and ApeCoin, and in-game assets are quite expensive, it has a number of advantages that could propel the MANA token forward. For example, users retain ownership of the digital assets they create in Decentraland and can convert them to cryptocurrencies other than MANA. Decentraland is designed for creatives, gamers, students, and online communities.
Algorand, founded by renowned computer scientist Silvio Micali, could be the next big cryptocurrency as it positions itself as a competitor to the Ethereum blockchain. It is used by hundreds of companies, including the Federation Internationale de Football Association and the governments of El Salvador and the Marshall Islands.
One of Algorand’s main advantages is its proof-of-stake algorithm, which provides a high degree of security and scalability and requires less power than Bitcoin and other platforms. This feature will only increase as cryptocurrencies come under growing criticism and possible regulation due to their high power consumption.
A big focus of the Algorand Foundation is maintaining its green credentials. Algorand is positioned as the world’s first carbon-negative blockchain. A special smart contract automatically allocates a portion of transaction fees to fund reforestation programs and alternative energy development. This is how the project offsets carbon dioxide emissions.
Gala is a cryptocurrency for meta-universe games used for internal settlements between users, as well as for activating paid features and purchasing virtual assets.
The main priority of Gala Games is to create high-quality and unique games on the blockchain, which will not be other modified copies, which are already many in the field of GameFi. The project is rapidly developing, attracting players and investors from different regions of the world. At the same time, investments in the project will suit both active users and long-term investors.
If you are looking for a unique and promising altcoin 2023, pay attention to Cardano (ADA). It is able to justify the hopes of traders for the following reasons:
- anyone can work on the development of the project thanks to the multi-level source code scheme;
- the goal of the creators is to develop a decentralized network with open input data, allowing for convenient payments (cheaper and faster than Ethereum);
- from the investment point of view, Cardano has a well-thought-out, consistent, and logical development strategy.
With its innovative solutions and close ties with the academic community, Cardano attracts the attention of investors and partners. In 2024, Cardano is expected to develop further and strengthen its market position.
The world of cryptocurrencies is dynamic, with new players constantly emerging to challenge the established giants. While Bitcoin and Ethereum have paved the way, the seven cryptocurrencies featured here show tremendous promise. As we approach 2024, it is crucial to stay informed and vigilant. The next cryptocurrency to explode could be one of these seven that will change the crypto landscape forever.
Can anyone accurately predict the next cryptocurrency to explode in 2024?
No one can give a 100% guarantee that a particular coin will grow significantly. There are cryptocurrencies that have all the prerequisites for progress. Some of them are listed in this article.
Should I invest in the next cryptocurrency predicted to explode?
Investing in cryptocurrency always involves risks. You do not know 100% which will be the next penny cryptocurrency to explode 2024. Therefore, everything depends on the choice of asset, strategy, and the optimal time to make a deal.
Often beginners wonder what cryptocurrency to buy for the long term to earn on investments, and whether it is realistic to gain on investments in the crypto market today. Experts recommend forming a balanced portfolio and distributing investments in several promising assets. This will reduce the risks of investment.
Can I rely solely on social media hype to identify the next cryptocurrency to explode?
In the digital market every single day some assets shoot up and drop down but if you want to invest in the most relevant coin, you may easily discover this cryptocurrency because the boom it will cause is difficult to put into words. One of the best ways to learn about the hype is through cryptocurrency groups on social media. Here you can see what everyone is talking about although investors need to approach things with a cool head and not get caught up in overly optimistic predictions.
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Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.